It isn’t a threat to Osmosis here - it’s a potential loss of value for users.
Osmosis had something like 500k dollars of CUDOS onchain which has a 50% weekly tolerance.
All CUDOS need to be converted to FET before the chain halts in a couple of weeks. I’m not saying I agree with this hard cutoff, just that it appears to be in place.
If that means that in the next two weeks, only around 75% of CUDOS can be withdrawn with these rate limits in - 50% of the current, then 50% of the new lower amount.
This is the kind of legitimate bulk withdrawal that
will ease, however since this is time critical and that is undergoing final tests this proposal is going up separately.