Proposal of Loan Swap of OSMO to NOM

Proposal Discussion
21

One element which could surely help in reducing the risk of voting power abuse is starting to actively decentralize the chain. Already since the beginning it is awefully centralized and little to nothing has been done about it.

The airdrop itself happened quite ok with a maxxed amount of NOM to be obtained per address (not taking sybilling into account of course), so the risk on that area is relatively small since everyone had the same opportunity to compound and grow their stack.

Just looking at the data. The biggest validator is the same size as the bottom 53(!!!).

Also looking at the voting power distribution we really should be able to do better:

image
image1161Ɨ452 12.1 KB

So if power over the network is an issue, I would surely expect some activity on the field of decentralisation before that it is an argument to need to do the audit before enabling IBC.

2 Likes
22

With the airdrop distribution, and Iā€™m assuming some team-staked NOM, how would a malicious actor get control of the chain by purchasing NOM alone, and how is this different from the security risks of any other IBC-enabled chain?

Normally, Iā€™d get this data myself, but Nomic isnā€™t on any of the explorer or monitoring sites that I am aware of.

There is at least 20m NOM staked at the moment, and since the only thing you can do with Nomic right now is stake, surely there is a particularly high amount of circulating NOM staked?

If StreamSwap was to sell 1M NOM for example, even if one actor purchased the entire amount, this wouldnā€™t be enough to take control of the bridge.

1 Like
23

Indeed. The amount of NOM staked can be influenced by how it is being staked and the amount of NOM to be sold via a StreamSwap can be small enough.

@nomic @mappum If you want, send me a DM to investigate further.

24

This can already be done as the network is today. Seems like the most realistic thing right now unless some large single entity comes along and does want to fund it, but even that raises other concerns with me.
It could even be a publicly funded loan where the original ā€œbackersā€ from this funding round get access to some kind of promised rate in btc or something when it matures.

I imagine this opens all kinds of doors to being labelled a security so Iā€™ll stop there. Just an idea from a guy that does not know anything about finance.

25

Itā€™s impossible to actually build a working explorer right now, but Iā€™ll try digging some wallet info from exported state later on.

1 Like
26

This is the most of an explorer it has:

But not compareable to any other chain around indeed.

27

Yeah there is no working REST server, and most of the messages on chain cannot be decoded because there are no available proto files for it. I was going to try and get somewhere with it until I ran into that brick wallā€¦

28

I think this must be a joke. Of course, if you consider paying the loan amount you received as Osmo, and of course, if you do not make a new offer by donating a certain portion of your income to Osmo. I can support you in the next correction, provided that you add the loan amount you received as Osmo and some grant.