Background
Vishal Talasani, co-founder of Stride Labs, presented a proposal at Cosmoverse, Istanbul, to merge Stride’s liquid staking zone with the Cosmos Hub. The merger aims to enhance decentralization and address concerns about centralization in liquid staking protocols like Lido.
STRD Governance Token Conversion
The proposal suggests converting Stride’s STRD governance token to Cosmos’ ATOM token. This conversion would make ATOM the sole governance token for the Stride protocol, and all Stride rewards would be allocated to ATOM stakers.
Benefits for Stride
From Stride’s perspective, the merger would significantly increase the decentralization of its protocol, fostering confidence and encouraging liquid staking.
Benefits for Cosmos Hub
The merger would also benefit the Cosmos Hub by incorporating the Stride team as an independent development team, further enhancing the Hub’s decentralization.
Concerns Raised
Avril Dutheil, founder of Neutron, expressed skepticism about the merger, citing concerns about ensuring teams continue to work independently and deliver value to the Hub rather than viewing it as an exit strategy.
Conclusion
The proposed merger between Stride’s liquid staking zone and the Cosmos Hub has the potential to enhance decentralization and address concerns about centralization in liquid staking protocols. However, concerns remain about ensuring teams continue to contribute to the Hub’s growth and development.
- Tags:
- ATOM
- Cosmos
- liquid staking
- merger
Credit and rights belong to MigBase.com