Cosmos Cosmos ATOM Staking Guide [Keplr + Ledger]

<p>This tutorial helps you manage and stake <a href="https://coinmarketcap.com/currencies/cosmos/">ATOM</a> tokens on the <a href="https://p2p.org/cosmos">Cosmos</a> blockchain, using both the <a href="https://keplr.app/">Keplr</a> Browser Extension and Web Wallet, as well as the <a href="https://www.ledger.com/">Ledger wallet</a>.</p><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h3 id="this-guide-will-help-you">This guide will help you</h3><ol><li>Set up your Keplr Wallet.</li><li>Stake ATOMs on the Cosmos blockchain to earn ATOM staking rewards.</li><li>Manage your Cosmos ATOM stake and grow your portfolio.<br></li></ol><h3 id="before-you-start-">Before you start:</h3><ul><li>Download and install the newest version of <a href="https://www.ledger.com/ledger-live/download">Ledger Live</a> on your desktop machine.</li><li>Update your <a href="https://support.ledger.com/hc/en-us/articles/360002731113-Update-Ledger-Nano-S-firmware">Ledger</a> device to the newest firmware.</li><li>Install the latest version of the Cosmos App on your Ledger device.<br></li></ul><p>See below for a step-by-step guide.</p><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h3 id="i-setting-up-your-keplr-wallet">I. Setting up your Keplr Wallet<br></h3><ol><li>Open the Keplr Browser Extension (available for <a href="https://chrome.google.com/webstore/detail/keplr/dmkamcknogkgcdfhhbddcghachkejeap">Chrome and Brave</a>) and press ‘Import Ledger’.</li></ol><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image-1.png" class="kg-image" alt></figure><p></p><p>2. Give the account a name, then click ‘Next’.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image-2.png" class="kg-image" alt></figure><p>3. Plug in and unlock your Ledger device. Open the Cosmos app and click ‘Next’.</p><p>4. Your Keplr account is successfully connected to your Ledger device.<br></p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image-3.png" class="kg-image" alt></figure><p>Now let's start staking!</p><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h3 id="ii-staking-atom-on-the-cosmos-blockchain">II. Staking ATOM on the Cosmos blockchain<br></h3><ol><li>Open the Keplr Browser Extension and choose your Ledger account (via the ‘human icon’).</li><li>Copy your address by clicking ‘Deposit’ first, then fund your account with ATOM.</li><li>Once you have a balance, you can proceed with the ‘<a href="https://wallet.keplr.app/#/cosmoshub-4/stake">Stake</a>’ option.</li></ol><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image-4.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2021/02/image-4.png 600w, https://economy.p2p.org/content/images/2021/02/image-4.png 904w" sizes="(min-width: 720px) 720px"></figure><p>4. Choose your validator (<strong>P2P.ORG - P2P Validator</strong>) then click ‘Manage’ and ‘Delegate’ in the next picture.</p><p>5. Choose the amount of ATOMs you want to stake and click ‘Delegate’.</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://economy.p2p.org/content/images/2021/02/image-5-1.png" width="392" height="357" alt></div><div class="kg-gallery-image"><img src="https://economy.p2p.org/content/images/2021/02/image-6.png" width="392" height="357" alt></div></div></div></figure><p>6. Set your preferred fee (there are three options available) by hitting ‘Set Fee’.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image-7.png" class="kg-image" alt></figure><p>7. In the following window, double-check the amount you are going to delegate as well as the P2P Validators’ address (you can see the first and last few digits only).</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2021/02/image-8.png" class="kg-image" alt></figure><p>8. Check the information on your Ledger device and click ‘Approve’ on it.</p><p>9. Use the Dashboard within the <a href="https://wallet.keplr.app/#/cosmoshub-4/stake">Keplr Web Wallet</a> or <a href="https://www.mintscan.io/cosmos">Mintscan</a>, one of the popular block-explorers, to see whether your delegation was successful.</p><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><blockquote><em>P2P Validator’s Cosmos address:</em><br><em><strong>cosmosvaloper132juzk0gdmwuxvx4phug7m3ymyatxlh9734g4w</strong></em><br></blockquote><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><p>Now let’s try to manage your staking assets.</p><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h2 id="iii-managing-your-cosmos-stake">III. Managing your Cosmos stake</h2><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h3 id="claim-your-atom-staking-rewards">Claim your ATOM staking rewards</h3><ol><li>Open the Keplr Browser Extension and click ‘Claim’.</li><li>Choose your comfortable fee by hitting ‘Set Fee’ in the appropriate pop-up screen.</li><li>Plug in your Ledger device, unlock, and open the Cosmos app on it, then click ‘Next’ in the Browser Extension pop-up.</li><li>Review the transaction on your Ledger device and confirm it by hitting the two buttons on your hard wallet.</li></ol><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h3 id="compound-your-atom-staking-rewards-to-increase-your-return">Compound your ATOM staking rewards to increase your return</h3><ol><li>Open the Keplr Web Wallet and, find your validator (P2P Validator) in the Staking Menu, click ‘Manage’ and then ‘Delegate’.</li><li>Choose the fees in the subsequent pop-up, hit ‘Set Fee’.</li><li>Plug in your Ledger device, unlock, and open the Cosmos app on it, then click ‘Next’ in the Browser Extension pop-up.</li><li>Review and sign transaction by hitting ‘Approve’ on your Ledger device.</li></ol><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><h3 id="cosmos-atom-staking-faq-"><br>Cosmos (ATOM) Staking FAQ:</h3><ul><li>The current ATOM staking APY is approximately 10.60% per year. </li><li>You need to have some funds remaining on your account while staking to ensure you can cover transaction fees.</li><li>Claiming rewards is a manually process which involves transaction fees.</li><li>Cosmos staking rewards are paid out in real-time, with rewards accruing approximately every 7 seconds.</li><li>The Cosmos network has a 21 day unstaking period throughout which your tokens will not be transferable.</li></ul><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><p>That’s it. Now you know how to delegate and compound your Cosmos staking rewards using both the Keplr Browser Extension and the Keplr Web Wallet together with your Ledger device.</p><p>If any questions arise, whether on <a href="https://p2p.org/cosmos">Cosmos staking</a> or not, feel free to contact us via <a href="https://twitter.com/p2pvalidator">Twitter</a>, <a href="https://t.me/P2Pstaking">Telegram</a>, <a href="https://www.linkedin.com/company/p2p-org/">LinkedIn</a>, or <a href="https://p2p.org/#contact-us">email</a>.</p><!--kg-card-begin: markdown--><p> </p> <!--kg-card-end: markdown--><p><strong>About P2P Validator</strong><br>P2P Validator is a world-leading non-custodial staking provider securing more than one billion USD value from over 5000 delegators across 15+ top-notch networks. We are early investors in Solana and have supported the network from the first block taking part in all stages of testing and voting.</p>

Leo Dubrovsky

from p2p validator

Cosmos Stargate and the new beginning of Cosmos

<p>We have voted YES to initiate the Stargate upgrade for the Cosmos Hub. We believe in the potential of the Cosmos ecosystem to grow and that<a href="https://stargate.cosmos.network/"> Stargate</a> opens a new page of ecosystem evolution being a huge step towards the original Internet of Blockchains vision.</p><p>By being an active contributor to the Cosmos ecosystem, P2P has built the dashboard to track delegation history across all the hub versions and claim rewards - a ledger delegation interface to securely stake in three simple steps. We participated in<a href="https://cosmos.network/goz"> Game of Zones</a> to test IBC in action and won the first prize in two phases. Our validator has taken part in a series of<a href="https://github.com/cosmosdevs/stargate#testnet"> testnets</a> since the beginning to prepare.</p><p><a href="https://stargate.cosmos.network/">Stargate</a> is the largest upgrade in the Cosmos ecosystem due date. What does it mean for the Cosmos network?</p><h3 id="road-to-million-blockchains">Road to million blockchains</h3><p>The current state of the ecosystem can be compared to the cities of a country struggling to communicate without capital and financial centers to connect them with each other. With the enablement of<a href="https://github.com/cosmos/ics/blob/master/papers/2020-05/build/paper.pdf"> Inter-Blockchain Communication</a> (IBC) the value can be seamlessly transferred across the ecosystem unleashing the synergetic effect among application-specific blockchains. Cosmos Hub will become the first intermedium to connect them with each other.</p><p><strong>The real long term challenge is to attract more builders and projects to the ecosystem to increase the cumulative value flow within the network.</strong> Notable improvements in performance and migration to<a href="https://medium.com/tendermint/tendermint-0-34-protocol-buffers-and-you-8c40558939ae"> Protobuf</a> blockchains will implement the upgrade to achieve higher throughput to handle the rising transaction volume. The ability to interoperate will bring composability to the ecosystem, with Protobuf it will be much easier for developers using various programming languages to communicate within the ecosystem and create novel applications.</p><p>In synergy with tools like<a href="https://github.com/tendermint/starport"> Starport</a> that allow developers to launch blockchains with a few commands and further coordinate the testnets with validators much faster, we can imagine the emergence of novel use cases and accelerated growth in areas like Decentralized Finance (DeFi) and Collectible economies powered by Non-Fungible Tokens (NFT).</p><h3 id="road-to-stargate-and-ibc">Road to Stargate and IBC</h3><p>Secure connection between blockchains requires trust in validators maintaining the actual state of the network. The Game-of-Stakes attracted and prepared solid staking providers and in March of 2019 Cosmos Hub was successfully launched on mainnet. There were two major upgrades, for the first year the focus was to battle-test staking, on-chain governance and provide a stable functioning network with a strong set of contributors.</p><p>Game of Stakes granted validators experience to be flexible to changing network conditions and on the 1st of May 2020 another incentivized competition called<a href="https://cosmos.network/goz"> Game of Zones</a> was launched to collect valuable data and prepare teams for the release of the IBC module. There were more than 150 participants.</p><p>IBC has been in development since the release of the original Cosmos whitepaper  - ongoing work to prepare and release the first version of the <a href="https://github.com/cosmos/ics/blob/master/spec.pdf">IBC specification</a> that outlines the overall design logic and architectural overview.</p><p>The plan of transition from hub-3 to hub-4 was outlined in the<a href="https://www.mintscan.io/cosmos/proposals/27"> Stargate proposal</a>. It was followed up with a<a href="https://stargate.cosmos.network/"> series of testnets</a> to examine the main features and ensure that the ecosystem participants are prepared for software changes being in line with the upgrade procedure.</p><p>On December 15th the finalized<a href="https://blog.cosmos.network/announcing-the-ibc-1-0-implementation-release-candidate-29f3245d7848"> version 1.0 of the IBC candidate</a> was announced. Multiple teams and contributors were involved in the process of improving, testing and finding bugs.</p><p>And now we have come to the point to finally bring the original vision of interoperability to the Cosmos network.</p><h3 id="what-to-expect-after-the-stargate-upgrade">What to expect after the Stargate upgrade?</h3><p>The rollout will happen in two phases as happened with with the launch of the Cosmos Hub on mainnet. During the first phase cross-chain transfers will be disabled to ensure the network is stable. Activation of the token transfer protocol will happen via on-chain governance. A proposal with parameter changes and timelines will be submitted and if passed we can utilize a fully functioning TCP/IP for blockchains in production.</p><p>With the enablement of the IBC, healthy competition among hubs can drive the development of the whole ecosystem. Novel use cases like liquidity mining over IBC can become a reality. New projects will be able to easily attract validators from the hub and ATOM will play the role of insurance against misbehavior providing strong security guarantees for new projects in the Cosmos network. Another interesting utility is that ATOM might be able to accrue fees in whitelisted tokens.</p><p>The IBC is still in its early days and adoption will take some time. Cosmos has made huge progress in these two years and P2P is proud to be part of it as a validator and contributor from the very beginning of the journey.</p><h3 id="about-p2p-validator">About P2P Validator</h3><p>P2P Validator is a world-leading non-custodial staking provider securing more than $650 million from over 4,500 delegators across 25+ top-notch networks. We are early ATOM investors and Game of Zones winners. P2P has supported Cosmos Hub from the first block taking part in all stages of testing and voting.</p><hr><p><strong>Web:</strong> <a href="https://p2p.org">https://p2p.org</a><br><strong>Stake ATOM with us:</strong> <a href="https://p2p.org/cosmos">https://p2p.org/cosmos</a><br><strong>Twitter:</strong> @p2pvalidator<br><strong>Telegram:</strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p>

Alex Bond

from p2p validator

Marlin, Cosmos, Polkadot Stake with P2P and get POND from FlowMint сross-chain stakedrop

<p>The Marlin network has announced the launch of a  stakedrop program called FlowMint as a distribution method of native tokens with a ticker POND among delegators staking DOT, ATOM and IRIS. All delegators staking with P2P Validator will have the opportunity to participate in the Marlin network and acquire Marlin tokens.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/12/02--1-.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/12/02--1-.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/12/02--1-.png 1000w, https://economy.p2p.org/content/images/2020/12/02--1-.png 1280w" sizes="(min-width: 720px) 720px"></figure><p>It is expected that 20% of Marlin native tokens will be distributed daily pro-rata among participants who are currently staking their digital assets.</p><h3 id="the-marlin">The Marlin </h3><p>Marlin is a layer-0 protocol focused on network-layer performance, security and robustness. It speeds up block propagation of existing blockchains to enable higher throughput. Marlin nodes compete with one another to transmit blocks from producers to receivers of various blockchains. The Marlin protocol bridges the gap between the performance and scale achieved by web2 and the security and decentralization demanded by web3.</p><p>Marlin Protocol has reeled in a $3 million seed round from Binance Labs, Arrington XRP, Electric Capital, NGC and other investors.</p><h3 id="how-to-get-tokens">How to Get Tokens</h3><p>To receive the tokens, P2P delegators will have to link their staker address in Polkadot, Cosmos, Irisnet, and the ETH address where the POND tokens will be transferred after confirmation of operations.</p><p>MPOND tokens will be distributed on the Matic sidechain<strong> </strong>due to the gas-intensiveness of the smart contracts. You'll have to transfer the tokens to Ethereum Mainnet to be able to interact with Marlin contracts.</p><h3 id="delegator-registration">Delegator Registration</h3><p>P2P delegators in Polkadot, Cosmos and Irisnet are getting a unique opportunity to participate in the Marlin network and get POND tokens.  Our team has launched Marlin gateway nodes and all of the validator addresses have been added to the whitelists for FlowMint stakedrop.</p><p>Registration for ATOM, DOT and IRIS stakers <strong>will begin on December 15, 2020.</strong></p><p>Detailed instructions can be found below:</p><ul><li><a href="https://www.marlin.pro/blog/participating-in-marlin-flowmint-as-a-polkadot-delegator-and-validator/">Participating in Marlin FlowMint as a Polkadot delegator</a></li><li><a href="https://www.marlin.pro/blog/participating-in-marlin-flowmint-as-a-cosmos-delegator-and-validator/">Participating in Marlin FlowMint as a Cosmos delegator</a></li><li><a href="https://www.marlin.pro/blog/participating-in-marlin-flowmint-as-an-irisnet-delegator-and-validator/">Participating in Marlin FlowMint as a Irisnet delegator</a></li></ul><p>Some points worth noting:</p><ul><li>MPOND needs to be claimed separately for each chain.</li><li>If you delegate two different addresses for the same chain you need to register for stakedrop twice and use two different ETH addresses.</li><li>The same ETH address can be used for bonding in different chains.</li></ul><h3 id="pond-distribution">POND Distribution</h3><p>Marlin will begin with Polkadot, Cosmos, Irisnet, Near and Matic. That is, 0.027/5% tokens will be dedicated towards eligible delegators of ATOM, DOT, IRIS, MATIC and NEAR distributed daily pro-rata amongst each community based on the size of stake/delegation.</p><p>Initially, FlowMint will support Tezos and others, allocating a portion of genesis tokens to eligible delegators of the given networks to be distributed pro-rata each day based on the size of the stake or delegation. </p><p>We will inform you about the addition of new networks on our <a href="https://twitter.com/P2Pvalidator">Twitter </a>and <a href="https://t.me/P2Pstaking">Telegram</a> channels.</p><h3 id="about-p2p">About P2P</h3><p>P2P Validator is a world-leading staking provider with the best industry security practices and proven expertise. The service provides comprehensive due-diligence of digital assets and offers only top-notch staking opportunities. At the time of publishing, more than 300 million of USD value is staked with <a href="https://p2p.org/?utm_source=blog&amp;utm_campaign=marlin_stakedrop">P2P Validator</a> by over 4000 delegators across 20+ networks.</p><p>We are constantly working on improvements to bring our customers the best proposals. Participating and supporting new blockchains and protocols brings benefits to all our stakers.</p><hr><p><em><em><em><em>Want to </em></em>get POND<em><em>? Contact</em></em></em></em> <em><em>p.pavlov<em><em>@p2p.org</em></em></em></em> <em>for<em><em><em> personal assistance.</em></em></em></em></p><hr><p><strong><strong><strong><strong>Web:</strong></strong></strong></strong><a href="https://p2p.org/?utm_source=blog&amp;utm_campaign=marlin_stakedrop"> p2p.org</a></p><p><strong><strong><strong><strong>Twitter:</strong></strong></strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong><strong><strong>Telegram:</strong></strong></strong></strong><a href="https://t.me/P2Pstaking"> https://t.me/p2pvalidator</a></p>

Paul P

from p2p validator

Cosmos Cosmos' Game of Zones Phase 3: Double Spend via a Double Sign

<h1 id="cosmos-game-of-zones-phase-3-double-spend-via-a-double-sign"><strong>Cosmos' Game of Zones Phase 3: Double Spend via a Double Sign</strong></h1><p>We'll show how malicious validators (or validator keys thieves) can double-spend via IBC transfers using vanilla Tendermint, cosmos-sdk and relayer software.</p><p>For an experiment we have two chains: <code>p2p-org-3</code> and <code>responsible-3</code>. On p2p-org-3 there are 1000, no more and no less, of very valuable tokens with <code>scarce</code> denom. Using our trick we can make <code>responsible-3</code> accept a total sum of <code>2000scarce</code> via a channel.</p><h2 id="double-spend-via-a-double-sign-step-by-step"><strong>Double spend via a double sign step by step</strong></h2><p>To double spend we:</p><ol><li>Open a channel from p2p-org-3 to responsible-3</li><li>Stop a single validator of p2p-org-3, replicated it in two copies (let's call them <code>p2p-org-3.1</code> and <code>p2p-org-3.2</code>, though they still have an original chain-id of <code>p2p-org-3</code>) and start again in two different exemplars.</li></ol><pre><code>p2p-org-3.2$ rly q bal p2p-org-3 100000000000ptp,1000scarce p2p-org-3.2$ rly q bal responsible-3 100000000000root,996000rsp,10transfer/hvigvvmjhcqwerty/ptp </code></pre><p>3.   Send 1000 scarce from <code>p2p-org-3.1</code>to <code>responsible-3</code>.</p><pre><code>p2p-org-3.1$ rly tx transfer p2p-org-3 responsible-3 1000scarce true $(rly ch addr responsible-3) I[2020-06-04|23:36:45.775] ✔ [p2p-org-3]@{68672} - msg(0:transfer) hash(13628DFA68099121C323DB7C2369489E1AFB71C2737B3D92B1BACAF5A9CFBB01) I[2020-06-04|23:36:56.725] ✔ [responsible-3]@{68908} - msg(0:update_client,1:ics04/opaque) hash(50F3730A339AE60A1FDB4FADF484EA8FDC870E9E46C8362BEE328D7D324FDDE8) p2p-org-3.1$ rly q bal p2p-org-3 99999999500ptp p2p-org-3.1$ rly q bal responsible-3 100000000000root,995500rsp,10transfer/hvigvvmjhcqwerty/ptp,1000transfer/hvigvvmjhcqwerty/scarce </code></pre><p>4.  Switch to <code>p2p-org-3.2</code>'s terminal - there we still have <code>1000scarce</code></p><pre><code>p2p-org-3.2$ rly q bal p2p-org-3 100000000000ptp,1000scarce p2p-org-3.2$ rly q bal responsible-3 100000000000root,995500rsp,10transfer/hvigvvmjhcqwerty/ptp,1000transfer/hvigvvmjhcqwerty/scarce </code></pre><p>5.  Send a bogus transfer (<code>100ptp</code>) from <code>p2p-org-3.2</code> to <code>responsible-3</code> - it fails     on <code>responsible-3</code> but we bump <code>p2p-org-3.2</code>'s packet count by one to be able to send further transfers succesfully.</p><pre><code>p2p-org-3.2$ rly tx transfer p2p-org-3 responsible-3 100ptp true $(rly ch addr responsible-3) I[2020-06-04|23:39:07.369] ✔ [p2p-org-3]@{68700} - msg(0:transfer) hash(EB8CAE3CDE96FF9073B54B5E6F70C43B83DA13A30E06D833AA107CEB94EE6279) I[2020-06-04|23:39:14.274] ✘ [responsible-3]@{0} - msg(0:update_client,1:ics04/opaque) err(client:15:couldn't verify counterparty packet commitment: key mismatch on operation #0: expected commitments/ports/transfer/channels/hvigvvmjhcqwerty/packets/3 but got commitments/ports/transfer/channels/hvigvvmjhcqwerty/packets/2: packet commitment verification failed) </code></pre><p>6. Succesfully send 1000 scarce from <code>p2p-org-3.2</code>to <code>responsible-3</code>.</p><pre><code>p2p-org-3.2$ rly tx transfer p2p-org-3 responsible-3 1000scarce true $(rly ch addr responsible-3) I[2020-06-04|23:40:02.589] ✔ [p2p-org-3]@{68711} - msg(0:transfer) hash(83DFA4FB75D22220ECD94F134D8A8AE5BC0D0075D2DA6021B8DA6C4688E28787) I[2020-06-04|23:40:12.237] ✔ [responsible-3]@{68947} - msg(0:update_client,1:ics04/opaque) hash(DD11048F41B6D0955EAC84D311DEF5DAD9A3F446398A59293C82A62D84F6B506) p2p-org-3.2$ rly q bal p2p-org-3 99999998900ptp [email protected]:/home/deploy$ rly q bal responsible-3 100000000000root,995000rsp,10transfer/hvigvvmjhcqwerty/ptp,2000transfer/hvigvvmjhcqwerty/scarce </code></pre><p>We think that if there's ever a real attack with stolen keys or malicious validators involved, it'll be carried out with a combination of running a fork + using modified software that can issue arbitrary IBC packets (like our own RootChain).</p><hr><p><em><em>The best way to support our contribution is to <a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post">stake ATOM with P2P Validador</a>.</em></em></p><hr><p><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post">P2P Validator</a> is a world-leading non-custodial staking provider securing more than $40 million by over 1000 delegators/nominators across 15+ top-notch networks. We've been validating in Cosmos Hub since the first day of mainnet. P2P Validator provides comprehensive due-diligence and invested its own funds in ATOM in 2017 intending to support Cosmos network in the long term.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post"> https://p2p.org</a></p><p><strong><strong>Stake ATOM with us:</strong></strong> <a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post">p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p>

Vasiliy Shapovalov

from p2p validator

Cosmos Cosmos' Game of Zones Phase 3: a Deceptive Rootchain that will trap your tokens

<h1 id="cosmos-game-of-zones-phase-3-a-deceptive-rootchain-that-will-trap-your-tokens"><strong>Cosmos' Game of Zones Phase 3: a Deceptive Rootchain that will trap your tokens</strong></h1><p><em><em>For Phase 3 we prepared a specific deceptive zone whose purpose is to trap your transfers and let the zone ‘root’ users to claim them on the counterparty chains.</em></em></p><h2 id="evil-rootchain"><strong>Evil Rootchain</strong></h2><p>For Phase 3 we prepared a specific deceptive zone whose purpose is to trap your transfers and let the zone ‘root’ users to claim them on the counterparty chains.</p><p>That zone does not expose a vulnerability in IBC, neither it is something unexpected by people who made ICS: it’s merely an illustration of IBC threat model and how it can be used to steal user funds.</p><p>We modified <code>createOutgoingPacket()</code> function to work like that:</p><ul><li>user who has at least some root denom tokens (i.e. 1000root on balance) can create any outgoing transfers they want, even if they don’t have the required funds;</li><li>user who has no root tokens cannot transfer any tokens back to a source chain.</li></ul><p>Here’s the <a href="https://gist.github.com/vshvsh/88964912dbd389332c53bc239fb59168">gist</a> of how it’s done, and the <a href="https://github.com/p2p-org/gaia-rootchain">full project</a>.</p><p>So if someone was to transfer, say, doubloons to our deceptive chain, they couldn’t take it back - but any root user can redeem fake tokens for real tokens on an origin chain.</p><p>That means that a regular user who sends funds to a deceptive chain can’t cash them out on an origin chain - they’ve basically lost they funds. But it’s not apparent, because internal transfers on the zone work fine, and until a user tries to redeem the transferred token they won’t see any problems.</p><p>Moreover, malicious root token holder can redeem those tokens instead of an original sender or transferred token holders, and that wouldn’t be apparent too without aggregate analysis of all transfers across all channels.</p><p>We deployed it on responsible-3 zone (heads up: responsible was an approved sockpuppet account of p2p all along; it didn’t compete in earlier phases where scarcity and/or account throughput were an issue).</p><h2 id="demonstration"><strong>Demonstration</strong></h2><p>An unsuspecting user makes a transfer of 100 very valuable ptp tokens to responsible-3:</p><pre><code>&gt;rly tx transfer p2p-org-3 responsible-3 100ptp true cosmos16zx4s8nculu94vhm07fd3qlg8g7grtj0xk49dg I[2020-06-03|18:21:59.489] ✔ [p2p-org-3]@{50776} - msg(0:transfer) hash(962733C0568867D6F4EA70417EB1E747FCC136396E3E020D5351DAD011ACBE6D) I[2020-06-03|18:22:09.218] ✔ [responsible-3]@{50793} - msg(0:update_client,1:ics04/opaque) hash(87D2802713DB702334AB843CAD488841E5A3E1A7C95DCB0DA0344E5039A77674) </code></pre><p>They now have transferred tokens in the wallet, but can they transfer them back?</p><pre><code>&gt;rly q bal responsible-3 100transfer/fmqnwnlqii/ptp </code></pre><pre><code>&gt;rly tx transfer responsible-3 p2p-org-3 100ptp false cosmos16zx4s8nculu94vhm07fd3qlg8g7grtj0xk49dg I[2020-06-03|18:56:09.666] ✘ [responsible-3]@{51200} - msg(0:transfer) err(sdk:4:failed to execute message; message index: 0: need to be root user to send ibc source=false transfers: unauthorized) Error: failed to send first transaction </code></pre><p>No, they can’t. Here comes a root user:</p><pre><code>&gt;rly q bal responsible-3 100000000000root,975000rsp </code></pre><p>They don’t have any <code>100transfer/fmqnwnlqii/ptp</code> tokens, but they can redeem 100ptp on p2p-org-3 anyway:</p><pre><code>&gt;rly tx transfer responsible-3 p2p-org-3 100ptp false cosmos1hazzkmrvxcrxvxv98daslkw0a7uax5djqgn20d I[2020-06-03|18:58:41.425] ✔ [responsible-3]@{51230} - msg(0:transfer) hash(24456218B05964F3B7B57EFD1F25E2CEEDA9BAAEBC957D0A6E315D801929E093) I[2020-06-03|18:58:49.540] ✔ [p2p-org-3]@{51217} - msg(0:update_client,1:ics04/opaque) hash(769158A9735DF93496F08F631E5D1AB04CCF081DFC132700E25C970D33DF74DB) </code></pre><pre><code>&gt;rly q bal p2p-org-3 100ptp </code></pre><h2 id="conclusion"><strong>Conclusion</strong></h2><p>The prolonged existence of actively malicious “rootchains” is not realistic - people wouldn’t use it for anything - but we expect people might deploy temporary ones for fishing or scamming purpose when IBC connections are permissionless and IBC-enabled wallets allow arbitrary chains to be added.</p><p>More than that, any sufficiently complicated IBC-enabled blockchain can become a “rootchain” due to vulnerability, especially if we’re talking about complex smart contract chains and dynamic IBC like on Agoric or CosmWASM chains. Both trapping the funds on receiving chain forever or dishonest redeeming on source chain can be a result of an exploit on undertested code.</p><p>We think that the community should build tools for total supply observability across chains and means to swiftly stop IBC transfers with malicious or vulnerable zones or applications via governance to prevent user fund loss.</p><hr><p><em><em>The best way to support our contribution is to <a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post">stake ATOM with P2P Validador</a>.</em></em></p><hr><p><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post">P2P Validator</a> is a world-leading non-custodial staking provider securing more than $40 million by over 1000 delegators/nominators across 15+ top-notch networks. We've been validating in Cosmos Hub since the first day of mainnet. P2P Validator provides comprehensive due-diligence and invested its own funds in ATOM in 2017 intending to support Cosmos network in the long term.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post"> https://p2p.org</a></p><p><strong><strong>Stake ATOM with us:</strong></strong> <a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=phase3_post">p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p>

Vasiliy Shapovalov

from p2p validator

Cosmos P2P Raises Fee at Cosmos While Continuing to Invest More Than Earnings

<p>P2P Validator has been supporting Cosmos network from day one, <strong><strong>providing high-quality validation services</strong></strong> for ATOM delegators. Our <strong><strong>developed products allow delegators</strong></strong> to easily manage investments and receive a detailed report on their staking income.</p><p><strong><strong>We invest in the development of Cosmos network</strong></strong> and see the long-term prospects, however, the costs of maintaining the infrastructure and product development are several times higher than the revenues that the validator receives currently. We have decided to <strong><strong>return to a commission of 8% in 21 days</strong></strong> to remain flexible and provide more sustainable services.</p><h2 id="what-have-we-done"><strong>What have we done?</strong></h2><p>For more than 5 months of hard work under a reduced fee, we <strong><strong>did not stop the development activity</strong></strong> in the Cosmos network. Here is a list of the <strong><strong>most significant achievements</strong></strong> that have been released for the Cosmos ecosystem:</p><p><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee#dashboard-block">P2P Dashboard</a> for Cosmos users:</p><ul><li>Track and predict user rewards (more correctly than major explorers, check out our <a href="https://economy.p2p.org/lost-in-cosmos-explorers?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">article</a>)</li><li>Ledger delegation, redelegation, claim of rewards</li><li>Rewards report for all Cosmos Hubs (1,2,3)</li><li>CSV reward report</li></ul><ol><li><a href="https://economy.p2p.org/category/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">9 articles</a> and users guides posted</li><li><a href="https://goz.p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">Visualization of IBC handshakes</a> for the Game of Zones</li><li><a href="https://github.com/p2p-org/relayer/blob/master/docs/commands.md">Documentation</a> and <a href="https://dash-goz.p2p.org/public/dashboards/PxNuUZv6XxsUwETE4iWhLiVEUIOiFlD3GJhPig6P?org_slug=default">dashboards</a> for Game of Zones</li><li><a href="https://defiapi.com/">Affiliate API</a> for Cosmos wallet monetization</li><li>We financially <a href="https://economy.p2p.org/p2p-validator-acquired-corestar-development-team?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">supported Corestar team</a>, who developed Arcade, Tendermint hack with built-in <a href="https://economy.p2p.org/p2p-validator-helps-to-carry-out-random-beacon-for-Cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">BLS random beacon</a> built on ICF grant</li><li>Ongoing work on public rate-limited GraphQL API for Cosmos applications</li></ol><p>Product development inside the ecosystem is an essential element not only to support the Cosmos network, but also as a part of the <strong><strong>long-term growth of the community and the network value.</strong></strong></p><h2 id="when-will-the-commission-be-increased"><strong>When will the commission be increased?</strong></h2><p>We will increase the commission by 1% every day, starting from June 12. <strong><strong>On June 18, our rate will remain at 8%.</strong></strong> There is a lot of work ahead and we believe that <strong><strong>joint efforts will accelerate the evolution of Cosmos network.</strong></strong></p><p>We want to <strong><strong>thank all our delegators</strong></strong> for their continuous support and being with us! <strong><strong>If you stake ATOM with P2P - you contribute to the Cosmos ecosystem.</strong></strong></p><h2 id="about-p2p-validator"><strong>About P2P Validator</strong></h2><p><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">P2P Validator</a> is a world-leading non-custodial staking provider with the best industry practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities securing more than 40 million of USD value. At the time of publishing, P2P Validator is trusted by over 1000 delegators across 15+ networks.</p><hr><p><em><em>Want to stake with us? Alexey will be happy to help. Contact [email protected] to get personal assistance.</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> provides secure non-custodial staking. Subscribe to our channels and stay tuned for updates and new blog posts.</p><p><strong><strong>Stake ATOM with us:</strong></strong> <a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">https://p2p.org/cosmos</a></p><p><strong><strong>Web:</strong></strong> <a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_fee">https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram chat:</strong></strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p><p><strong><strong>Telegram announcement:</strong></strong> <a href="https://t.me/p2porg">https://t.me/p2porg</a></p>

Paul P

from p2p validator

Cosmos P2P Validator helps to carry out development of Random Beacon for Cosmos

<p>P2P Validator’s team successfully carried out the development of BLS-based Random Beacon to provide Cosmos application-specific blockchains with an unbiased source of entropy. The code is<a href="https://github.com/corestario/tendermint"> open-sourced</a> and available for further exploration by the community. This implementation of Random Beacon opens new possibilities for projects that require truly unpredictable randomness in their decentralized products.</p><p><strong><strong>Our team will continue to develop features that can bring more users and add more value to the Cosmos ecosystem</strong></strong>. If you want to support our initiatives the best way is to<a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_random_beacon"> stake ATOM with us</a>.</p><h3 id="high-level-overview"><strong>High level overview</strong></h3><p>Random Beacon is a cryptographic primitive that periodically outputs random numbers which are publicly available and verifiable by any party. Random Beacon requires several important properties:</p><ul><li>Availability (or liveness) — an adversary cannot prevent a random number generation process.</li><li>Unpredictability — an adversary cannot predict the protocol outcome (a random value).</li><li>Bias-resistance — an adversary cannot influence future values to their advantage.</li><li>Public-Verifiability — anyone can verify the protocol’s outcome.</li></ul><p>In a decentralized environment the ability to generate provably random outputs is critical to protect applications from manipulations and get rid of centralized random number sources. It can also be helpful for data protection as random numbers are used in the generation of cryptographic keys, establishing connections, internal sequences and so on.</p><p><em><em>Randomness can be useful for numerous blockchain applications:</em></em></p><ul><li>gaming, gambling and lotteries (e.g. PoolTogether)</li><li>cryptographic sortition in consensus for leader or quorum selection (e.g. DFINITY, Elrond, ThunderCore, Cardano)</li><li>cryptographic sortition for financial applications (e.g. tBTC-like collateralized bridges)</li><li>elections, sociology and statistics</li><li>advanced cryptography, mixnets and other protocols that require randomness to provide privacy or security</li></ul><p>Implementation of Tendermint with BLS-based random beacon - Arcade, provides each block with a random number that can be safely used during block processing without changing original Tendermint security assumptions.</p><h3 id="bls-based-random-beacon-in-tendermint"><strong>BLS-based Random Beacon in Tendermint</strong></h3><p>We wanted our in-built pseudo random number generator (PRNG) to be suitable for applications like games and gambling: that means fast and unbiasable (many random beacons used for consensus are slightly biasable, what's fine for cryptographic sortition but is not suitable for a game like blackjack). Preferably it should be available at every block.</p><ol><li>Unbiasable</li><li>Small rounds (a few seconds at most)</li><li>Publicly verifiable</li><li>Small receipt (under 10kb)</li><li>Decentralizible</li><li>Safety and liveness similar to original Tendermint</li><li>Sybil resistant</li><li>Censorship resistant</li></ol><p>The most suitable random beacon to satisfy constraints is a BLS Threshold Signature-Based Beacon, proposed by the DFinity team. To build it we expanded a pre-commit step in the Tendermint consensus.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/kkYo5H6.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/kkYo5H6.png 600w, https://economy.p2p.org/content/images/2020/09/kkYo5H6.png 782w" sizes="(min-width: 720px) 720px"></figure><p>The idea works by expanding a pre-commit step of Tendermint consensus: <strong><strong>validators send not only pre-commit but also add partial BLS threshold signatures</strong></strong>. This allows every new block to come out with a freshly generated random number.</p><p>The outlined PRNG is available at every block and suitable for building randomness-dependent applications within the Cosmos ecosystem. We also built a Cosmos SDK adaptation that can interact with the random number in the block, and a reseeding module that is capable of bringing external randomness to deterministic BLS-based PRNG.</p><p>BLS threshold signatures need a key generation step. We implemented an off-chain distributed key generation based on Pederson distributed key generation (DKG), and an on-chain fallback that provides the ability to both attest and slash in cases when off-chain DKG fails.</p><h3 id="about-p2p-validator"><strong>About P2P Validator</strong></h3><p><a href="https://p2p.org/">P2P Validator</a> is a world-leading non-custodial staking provider with the best industry practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities securing more than 40 million of USD value. At the time of publishing, P2P Validator is trusted by over 1000 delegators across 15+ networks.</p><hr><p><em><em>Want to stake with us? Alexey will be happy to help. Contact [email protected] to get personal assistance.</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> provides secure non-custodial staking. Subscribe to our channels and stay tuned for updates and new blog posts.</p><p><strong><strong>Stake ATOM with us:</strong></strong> <a href="https://p2p.org/cosmos?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_random_beacon">https://p2p.org/cosmos</a></p><p><strong><strong>Web:</strong></strong> <a href="https://p2p.org/">https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram chat:</strong></strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p><p><strong><strong>Telegram announcement:</strong></strong> <a href="https://t.me/p2porg">https://t.me/p2porg</a></p>

Alex Bond

from p2p validator

Cosmos P2P Validator acquired Corestar development team

<p>We are thrilled to announce that <a href="https://corestar.io/">Corestar</a> team joined P2P Validator to create synergy in the development of decentralized ecosystems.</p><p>Our team have always been looking for ways to add more value to the projects we believe in. Comprehensive contribution is an important part of our long term vision. <strong><strong>All our thoughts are concentrated on actions facilitating the continuous progress of decentralized networks.</strong></strong> <a href="https://p2p.org/cosmos">By staking ATOM with us</a> you support our efforts to deliver meaningful results in the long run.</p><p>P2P Validator provides non-custodial staking including valuable tools for delegators, community building, educational enlightenment and <em><em>with acquisition of Corestar team we will add solid development activities to the scope of our capabilities</em></em>.</p><h3 id="about-corestar"><strong>About Corestar</strong></h3><p><a href="https://corestar.io/">Corestar</a> is a team of dedicated professionals focused on research and development within the Cosmos ecosystem. A lot of effort was concentrated on NFT marketplace over IBC and Corestar got onto the list of <a href="https://blog.cosmos.network/cosmos-hackatom-berlin-recap-4722882e7623">HackAtom Berlin</a> finalists with MVP that grew into the <a href="https://openmarket.one/">Open Market</a> project.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/W3nw23I.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/W3nw23I.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/W3nw23I.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/W3nw23I.png 1600w, https://economy.p2p.org/content/images/2020/09/W3nw23I.png 1839w" sizes="(min-width: 720px) 720px"></figure><p>In addition, Corestar received an ICF grant to develop <a href="https://github.com/corestario/tendermint">Arcade</a> - Tendermint implementation with built-in random beacon. Arcade will provide application-specific blockchains in the Cosmos ecosystem with a decentralized source of entropy to power various applications like cryptography, games and gambling platforms without changing the security assumptions of Tendermint.</p><p><em><em>We believe that the Corestar team will significantly strengthen our development department and benefit the Cosmos ecosystem.</em></em></p><h3 id="immediate-perspectives"><strong>Immediate perspectives</strong></h3><p>IBC is currently the most important milestone in the success of Cosmos and the launch of incentivized testnet "<a href="https://goz.cosmosnetwork.dev/">Game Of Zones</a>" is near at hand. As an active contributor, P2P Validator will take part in the competition with additional development resources, ready to deliver.</p><p>We have prepared a <a href="https://goz.p2p.org/">visualization</a> of handshakes between nodes to help participants monitor the current status of connections during the contest.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/HG5ZbBv.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/HG5ZbBv.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/HG5ZbBv.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/HG5ZbBv.png 1600w, https://economy.p2p.org/content/images/2020/09/HG5ZbBv.png 1893w" sizes="(min-width: 720px) 720px"></figure><p>Proof-of-stake ecosystem is evolving really fast and we are fully prepared to facilitate that growth diving deep into the heart of decentralized technologies.</p><h3 id="about-p2p-validator"><strong>About P2P Validator</strong></h3><p><a href="https://p2p.org/">P2P Validator</a> is a world-leading non-custodial staking provider with the best industry practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities securing more than 30 million of USD value. At the time of publishing, P2P Validator is trusted by over 1000 delegators across 15+ networks.</p><hr><p><em><em>Want to stake with us? Alexey will be happy to help. Contact [email protected] to get personal assistance.</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> provides secure non-custodial staking. Subscribe to our channels and stay tuned for updates and new blog posts.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram chat:</strong></strong> <a href="https://t.me/P2Pstaking">https://t.me/P2Pstaking</a></p><p><strong><strong>Telegram announcement:</strong></strong> <a href="https://t.me/p2porg">https://t.me/p2porg</a></p>

Alex Bond

from p2p validator

Cosmos, Staking, Kava, Terra, Regen Lost in Cosmos explorers...

<p>Existing Cosmos explorers show limited information. In some cases, reward withdrawal happens not only by initiating <code>withdraw</code> transaction and there are unobvious events, which cause that action. We have added these hidden events to <a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_dashboard_release#dashboard-block">P2P Dashboard</a>, <strong><strong>implemented full reward history across all Cosmos Hub versions and opened it for community</strong></strong>. Below, I will walk through the topic in detail with examples.</p><h3 id="transparency-limit"><strong>Transparency limit</strong></h3><p>Every transaction that is recorded in non-private blockchain can easily be retrieved for analytical or other purposes providing clarity for end users. With such transparency everyone can get a trusted record of any event since the start of the network. But is it really an easy task for someone without deep knowledge in code and various API endpoints to get all the data they need?</p><p>You may argue that there are multiple explorers built for this purpose but each of them focuses on various goals and doesn’t give a complete picture of all events happening in a particular network. For an ordinary user like me, explorers act as a window in this magic world of blockchains and <strong><strong>our understanding is limited by the events various tools decide to display</strong></strong>.</p><p>Blockchains are still new and complex to understand. The increasing number of projects with a different logic and various triggers is aggravating. Transparency matters especially for financial transfers and events that can be used for accounting purposes. For example, in Proof-Of-Stake blockchains it can be a withdrawal of accumulated rewards.</p><p>A diversity of high-quality explorers is significant for building user commitment to the network and facilitating trust although more tools do not always result in better visibility. Some explorers focus more on usability, which is also very important but it still is not conductive to increasing transparency for users of the network.</p><h3 id="unobvious-events-in-tendermint-blockchains"><strong>Unobvious events in Tendermint blockchains</strong></h3><p>Let's take a look at the reward withdrawal process in Cosmos Hub. Surplus accumulates in a validator pool and can be withdrawn to the corresponding staking address manually. Basically, a delegator withdraws rewards at any point of time to receive them on address. Explorers show this operation with names like GetReward or Withdraw Reward. In fact that's not the only action that triggers reward withdrawal.</p><h4 id="example-27-03-2020-"><strong><strong><strong>Example</strong></strong> (27.03.2020)</strong></h4><p>Let's take a random account and check the information about its balance on<a href="https://www.mintscan.io/account/cosmos1d5lu67hu3lhqtw6zyv7uy4gkfpdtfnzxw0wga8"> Mintscan</a> block explorer.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1-5.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1-5.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/1-5.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/1-5.png 1600w, https://economy.p2p.org/content/images/2020/09/1-5.png 1784w" sizes="(min-width: 720px) 720px"></figure><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2-8.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2-8.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/2-8.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/2-8.png 1600w, https://economy.p2p.org/content/images/2020/09/2-8.png 1799w" sizes="(min-width: 720px) 720px"></figure><p>If we calculate total balances using this transaction data we should get:</p><ul><li>Received: <em><em>484,7076 ATOM</em></em></li><li>Delegated: <em><em>474 ATOM</em></em></li><li><em><em>Tx Fees: 0,015 ATOM</em></em></li><li>Available: <strong><strong><em><em>10,692625 ATOM</em></em></strong></strong></li></ul><p>And here are values from<a href="https://www.mintscan.io/account/cosmos1d5lu67hu3lhqtw6zyv7uy4gkfpdtfnzxw0wga8"> Mintscan</a>:</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3-7.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3-7.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/3-7.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/3-7.png 1600w, https://economy.p2p.org/content/images/2020/09/3-7.png 1890w" sizes="(min-width: 720px) 720px"></figure><p>It is also true for the same address on <a href="https://cosmos.bigdipper.live/account/cosmos1d5lu67hu3lhqtw6zyv7uy4gkfpdtfnzxw0wga8">Forbole</a>:</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/4-4.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/4-4.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/4-4.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/4-4.png 1600w, https://economy.p2p.org/content/images/2020/09/4-4.png 1889w" sizes="(min-width: 720px) 720px"></figure><p>We see an additional 0,971002 ATOM on the available balance, but where did they come from if there was no withdraw transaction made by this account? Of course you may say it's even less than 1 ATOM who cares? But systems based on a code should not allow any mistake. So, is the displayed balance correct or wrong? Let's look into it.</p><p>In fact, the balance is correct. <strong><strong>There are hidden events that trigger reward withdrawal but are not displayed on most explorers</strong></strong>. These tools serve another purpose and these events do not correspond much to the observation of what is happening in general. Nevertheless, these triggers are still crucial for generating full withdrawal history and bringing clarity for delegators.</p><p>There are five core types of actions delegators usually perform:</p><ul><li>Delegate to a validator</li><li>Redelegate to another validator</li><li>Undelegate from a validator</li><li>Withdraw accumulated rewards</li><li>Send available tokens to another address</li></ul><p>The first four of them initiate reward withdrawal, which is usually not displayed for the first three actions by most explorers.</p><p>On <a href="https://p2p.org/dashboard/cosmos1d5lu67hu3lhqtw6zyv7uy4gkfpdtfnzxw0wga8">P2P Dashboard</a> you can check reward withdrawals related to the same address.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/5-4.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/5-4.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/5-4.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/5-4.png 1600w, https://economy.p2p.org/content/images/2020/09/5-4.png 1895w" sizes="(min-width: 720px) 720px"></figure><p>In some cases, to apply updates of the network, validators stop producing blocks and upgrade node software. This process requires a transition to a new chain with a new genesis file that stores the actual state at the moment of chain halt. When the new chain becomes active what happens with accumulated rewards?</p><p>These rewards also become available, the transition to the new chain triggers withdrawal but the event is also hidden and not obvious to delegators.</p><h3 id="p2p-dashboard"><strong>P2P Dashboard</strong></h3><p>Every public network needs a variety of analytical tools to allow people without advanced technical skills to get information about what is going on from different angles. In Proof-Of-Stake blockchains a clear reward history and accessibility of historical data are especially important. <strong><strong>What if you need to prove received reward referring to a particular event that simply does not displayed by any explorer?</strong></strong></p><p>Thinking of that, we decided to conduct technical research to make all rewards and withdrawals together with corresponding messages accessible and transparent across all versions of Cosmos Hub.</p><blockquote><em><em>We have added ability to check all withdrawal events across all versions of Cosmos Hub on <a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_dashboard_release#dashboard-block">P2P Dashboard</a> and made it open for community. In addition, any ATOM delegator can check all withdrawals, get full reward history and download a report in CSV for multiple addresses.</em></em></blockquote><p>To start, go to <a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_dashboard_release">p2p.org</a> and click <code>Get started</code> button in the top right corner. Connect to the dashboard manually by entering the address or using your Ledger device.</p><hr><p><em><em>Want to stake with us? Alexey will be happy to help. Contact</em></em> <em><em>[email protected]</em></em> <em><em>to get personal assistance.</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> provides secure non-custodial staking. Subscribe to our channels and stay tuned for updates and new blog posts.</p><p><strong><strong>Stake ATOM with us:</strong></strong><a href="https://p2p.org/cosmos"> https://p2p.org/cosmos</a></p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/?utm_source=blog&amp;utm_medium=economy&amp;utm_campaign=cosmos_dashboard_release"> https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>

Alex Bond

from p2p validator

Cosmos How to Redelegate your ATOM with Ledger on p2p.org

<p>Our team have updated the delegation tool using the <strong><strong>Ledger</strong></strong> device on the <strong><strong>Cosmos network</strong></strong> so now users can <strong><strong>go through the redelegation process</strong></strong>.</p><blockquote><em><em>P2P.ORG - offers Secure &amp; Non-Custodial Staking. No operations are possible without your confirmation, we will not request or store your private key or initial phrase.</em></em></blockquote><p>The redelegation process allows you to change which validator you are delegating at any time and free of charge.</p><p>Use this function to change your validator if you are no longer satisfied with its services or terms. For example, high commission rates, long downtimes that reduce your rewards, or other factors.</p><p>The whole process of redelegating your ATOM is simple and can be done in a safe way in just a few minutes.</p><p>To <strong><strong>get started</strong></strong> just go to <a href="https://p2p.org/cosmos?utm_source=Cosmos_Redelegate&amp;utm_medium=creds_link&amp;utm_campaign=blog">p2p.org/cosmos</a>, click the <code>Stake with Ledger</code> button and select <code>Redelegate</code></p><h2 id="step-1-plug-in-your-ledger-device-and-open-the-cosmos-app"><strong>Step 1. Plug in your Ledger device and open the Cosmos app</strong></h2><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1-6.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1-6.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/1-6.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/1-6.png 1600w, https://economy.p2p.org/content/images/2020/09/1-6.png 1989w" sizes="(min-width: 720px) 720px"></figure><h2 id="step-2-choose-validator-and-then-the-amount-for-redelegation"><strong>Step 2. Choose validator and then the amount for redelegation</strong></h2><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2.jpg" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2.jpg 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/2.jpg 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/2.jpg 1600w, https://economy.p2p.org/content/images/size/w2400/2020/09/2.jpg 2400w" sizes="(min-width: 720px) 720px"></figure><p><strong><strong>Note about redelegation:</strong></strong></p><ul><li>You can redelegate a certain amount of ATOMs from one validator to another</li><li>Can only be used if already bonded to a validator</li><li>Redelegation takes effect immediately, there is no waiting period to redelegate</li><li>After a redelegation, no other redelegation can be made from the destination account for the next 3 weeks</li></ul><blockquote><em><em>If you have multiple addresses in your Ledger you can switch accounts by changing the "path" and reconnect.</em></em></blockquote><h2 id="step-3-confirm-the-transaction-on-your-ledger"><strong>Step 3. Confirm the transaction on your Ledger</strong></h2><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3.jpg" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3.jpg 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/3.jpg 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/3.jpg 1600w, https://economy.p2p.org/content/images/size/w2400/2020/09/3.jpg 2400w" sizes="(min-width: 720px) 720px"></figure><p>After the successful redelegation, you can check all related information and monitor your rewards using P2P Dashboard.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/4.jpg" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/4.jpg 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/4.jpg 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/4.jpg 1600w, https://economy.p2p.org/content/images/size/w2400/2020/09/4.jpg 2400w" sizes="(min-width: 720px) 720px"></figure><hr><p><em><em>If you have any questions feel free to contact us. We are always open for communication.</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> is a Secure Non-Custodial Staking. Stay tuned for updates and new blog posts.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/?utm_source=Cosmos_Redelegate&amp;utm_medium=creds_link_footer&amp;utm_campaign=blog"> https://p2p.org</a></p><p><strong><strong>Stake ATOM with us:</strong></strong> <a href="https://p2p.org/cosmos?utm_source=Cosmos_Redelegate&amp;utm_medium=creds_link_footer&amp;utm_campaign=blog">https://p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p>

Paul P

from p2p validator

Economy, Cosmos, Kava Kava - The first decentralized lending platform in Cosmos

<p>We live in a world of finance. Monetary incentives and market movements influence our daily decisions and define human lives in general. Under capitalism, the financial industry has become global expressing economic relations between people and institutions. Nowadays, existing wealth distribution mechanisms are inefficient and the economic environment is unstable. <em><em>A lack of trust become inevitable and we are moving into the new era of decentralized finance (DeFi).</em></em> Borderless, accessible and transparent interactions between participants without counterparties to transform old and inefficient financial instruments is the new paradigm of the trustless economy.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/T8DKKpE-1.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/T8DKKpE-1.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/T8DKKpE-1.png 1000w, https://economy.p2p.org/content/images/size/w1600/2020/09/T8DKKpE-1.png 1600w, https://economy.p2p.org/content/images/size/w2400/2020/09/T8DKKpE-1.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>Kava is the first decentralized bank in the <a href="https://economy.p2p.org/introduction-to-cosmos-economy">Cosmos ecosystem</a> bridging broad digital assets to DeFi. With interoperability in mind and solid team cross-chain expertise Kava blockchain will bring new markets to the Cosmos ecosystem providing users with the liquidity and the necessary fundamentals for DeFi applications and services.</p><h1 id="4-de-s-of-kava"><strong>4 "De-s" of Kava</strong></h1><p><strong><strong>1) De-centralized lending solution.</strong></strong> Any person can take a loan in a stablecoin collateralized with crypto assets. There is no third party involved and each person is self-responsible for managing debt and lends to himself. This allows people to release a portion of stacked liquidity from passively held digital assets and spend it on whatever they want.</p><p><strong><strong>2) De-centralized margin trading.</strong></strong> When users put crypto collateral to take a loan they can use it for doubling-down their long position in a particular asset. In this case, if the collateral value of the asset increases the user may get a higher profit.</p><p><strong><strong>3) De-centralized stablecoin.</strong></strong> Kava platform provides a mechanism to issue a stable digital currency through collateralized debt position (CDP). Stable digital currency maintains <code>1:1 peg</code> to <code>USD</code> playing role of a hedge against a bear market or a true mean of exchange without explicit volatility. It allows decentralized stablecoin to take part in broader financial applications like decentralized exchanges and financial marketplaces, creating a wide space for DeFi development.</p><p><strong><strong>4) De-centralized governance and ownership.</strong></strong> The most exciting part is that everyone can participate in the project's evolution and own a share of the network. All participants who stake native token <code>KAVA</code> will be rewarded for effective governance depending on transaction fees, total supply emission and repaid loan fees.</p><p>Cosmos ecosystem is designed with existing assets like <code>BTC</code> or <code>XRP</code> in mind. If we assume that just <code>1%</code> of <code>BTC</code> will take part in DeFi it will result in more than <code>1,5 billion USD</code> value injection also adding to a scarcity of <code>BTC</code> positively influencing the cryptocurrency market in general.</p><hr><p><em><em>In the next chapters we will dive deeper into details of Kava platform and cover staking benefits, CDP, existing risks associated with staking and other important topics.</em></em></p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>

Alex Bond

from p2p validator

Economy, Cosmos Why we are against raising the number of validators

<p>Currently, 6 validators control more than <code>33%</code> of Cosmos Hub voting power with <strong><strong>over 62 000 000 ATOM</strong></strong> at stake <strong><strong>(&gt;313 000 000 USD)</strong></strong>. Their <a href="https://medium.com/@hector_89360/cosmos-hub-validators-rich-list-9ed69274e5e">monthly revenues</a> are sustainable and in most cases, are high enough to behave in interests of the Cosmos ecosystem even if they are technically able to collude. Their income is also sufficient to maintain reliable infrastructure, provide high level of security and upgrade their facilities. If we will look at validators from 80 to 100 we may notice that they have around <strong><strong>1 252 370 ATOM</strong></strong> at stake <strong><strong>(6 261 850 USD)</strong></strong>. Monthly revenues of a single validator in this group, in most cases, do not exceed <strong><strong>1000 USD</strong></strong>. Most likely, it is not enough to provide sustainable improvements, cover running costs, pay salaries to the employees and add value to the ecosystem. If we would broaden validators set and add 25 more, their revenues, probably, would be even less. Their ability to provide secure services in the long term is questionable as well as ability to compete and attract new delegators.</p><p>Situation with network decentralization will not change vastly, last 20 validators have total voting power less than <strong><strong>0,75%</strong></strong>. Taking that into consideration we suggest that additional 25 validators will not add more than <strong><strong>0,5%</strong></strong> creating state of the ecosystem where <strong><strong>36%</strong></strong> of validators have less than <strong><strong>1,25%</strong></strong> of voting power making power distribution even more irrational. This issue should be addressed before raising the threshold to establish fair distribution and define a bottom border of entering the validator's set.</p><p>These validators will have higher risk of slashing with lower cost increasing economic viability of such a harmful behavior. For example, the cost of double-sign for Polychain Labs is higher than <strong><strong>3 000 000 USD</strong></strong> while the average cost of double-sign for validators from 80-100 is close to <strong><strong>15 000 USD</strong></strong>. The cost for validator #100 is less than <strong><strong>10 000 USD</strong></strong>. This state of the ecosystem may undermine the overall trust of the Cosmos network affecting decentralization even more as delegators would not even consider to stake out of the top ten experiencing frequent slashing events.</p><h1 id="conclusion"><strong>Conclusion</strong></h1><p>To sum up everything written above, we suggest, that Cosmos Hub is still in the early stage and not mature enough to rise that number <em><em>as there does not exist strong necessity to do so and outcomes are not clear enough</em></em>. In our opinion, we should take more time to establish a healthier spirit of competition <em><em>inside the existing validator's set</em></em> and see if the smaller validators in the set are able to attract new delegators and provide sustainable services.</p><p>We understand that raising the threshold may bring new players in and final intentions are positive, but there may exist an opposite direction that has negative implications in the long run. In that case, our suggestion would be to collect more empirical data and increase the threshold based on the results of the first year as we do not need to rush forward. We already saw <a href="https://twitter.com/zmanian/status/1145072296723275776">double-sign slashing</a> and want to decrease the probability of such events being sure that the majority of validators are reliable and sustainable.</p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Stake ATOM with us:</strong></strong><a href="https://p2p.org/cosmos"> https://p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>

Konstantin Lomashuk

from p2p validator

Economy, Cosmos What is your best atom staking strategy?

<p>Previously <a href="https://economy.p2p.org/5-reasons-to-stake-your-atoms">we discussed</a> why staking is important for the ecosystem and how people interested in the network potential can benefit increasing their overall share without suffering from inflation implications. In this short blog post I want to cover some strategies which participants could utilize with their outcomes and possible risks.</p><p>There are three key options for stakers in existing conditions:</p><ul><li>Stake and forget</li><li>Stake and use the power of compounding in order to increase a total share of the network</li><li>Stake and save the current network share while withdrawing gains diluted by inflation from other participants who do not stake.</li></ul><p>In fact each of these options could be supplemented with the idea of diversification amongst various validators to decrease <a href="https://economy.p2p.org/slashing-overview-in-cosmos-network">slashing risk</a>.</p><p>For simplicity let’s assume that we have two delegators, the first is staking the second one is not. Initial total supply is <code>100 atoms</code> inflation is <code>7%</code>, staking ratio is equal to the target value of <code>67%</code> and considered period of observation is <code>5 years</code>.</p><h1 id="1-stake-and-forget"><strong>1) Stake and forget</strong></h1><p>This strategy may look convenient at a first glance but such behavior has many disadvantages. Inactive delegator can miss the moment when a node of a validator he bonded to goes offline for a long period resulting in slashing of a stake. Community may decide to change initial network parameters via governance. It may influence overall staking performance and an inactive delegator can miss that. In this case, accumulated rewards do not secure the cosmos hub.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/1-13.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/1-13.png 600w, https://economy.p2p.org/content/images/2020/09/1-13.png 758w" sizes="(min-width: 720px) 720px"></figure><p>Network share growth is slowing down as rewards become diluted by inflation and in following years it will become negative. Slashing will affect the whole holdings including rewards.</p><h1 id="2-stake-and-compound"><strong>2) Stake and compound</strong></h1><p>This strategy is especially effective when inflation is rising and there exists a strong belief in future ability of atom to capture transaction fees flow from validating on different chains, issuing assets and so on. In this case, additional gains from people who do not stake are re-delegated on an annual basis.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/2-16.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/2-16.png 600w, https://economy.p2p.org/content/images/2020/09/2-16.png 679w"></figure><p>Staking ratio stays constant so return on staking (RoS) is not changing and network share growth is stable in this example. Obviously rewards of this delegator outperformed the previous one. This strategy also has trade-offs. If a big fish bonded to a single validator or validator itself has a big stake or delegated amount, implementing this approach may lead to high network centralization and power concentration. This will not benefit network participants and would undermine security of the cosmos hub.</p><p>This scenario is also subject to slashing risk the most. To increase safety of the funds it is highly recommended to diversify stake amongst various validators even if slashing sounds like something unrealistic.</p><h1 id="3-stake-and-maintain-the-same-share-slightly-releasing-profit-exceeding-standard-inflation"><strong>3) Stake and maintain the same share slightly releasing profit exceeding standard inflation</strong></h1><p>If <code>100%</code> of total atom supply is locked in staking every holder will have equal provisions. In fact, there would be no difference in their network ownership and no one would be diluted. In this case we cannot gain extra atoms and total yield would be zero. Inflation should be considered as a <strong><strong>feature that protects ownership of the network from dilution and as a punishment for every holder who does not contribute to the cosmos hub security</strong></strong>. Profit from inflation accrues only from those who do not stake. Their network share is redistributed among others and there is always an option to withdraw this addition without ownership reduction.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/3-15.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/3-15.png 600w, https://economy.p2p.org/content/images/2020/09/3-15.png 758w" sizes="(min-width: 720px) 720px"></figure><p>This approach is also good as a hedge against slashing in the long run. The more frequently you withdraw and sell rewards the less atoms will be affected. This way of staking is especially effective if inflation and annual RoS are falling and network ownership growth is slowing down. Selling portions of atom provisions may be considered as a hedge against price fluctuations. If atom price is expected to decrease in a particular period released profits could be used to buy back with a better price. If price is expected to rise and future dynamic is uncertain then it could be a great cure against greed and a good way to release profit without taking away the ability to generate revenue in future from assets and losing network ownership.</p><h1 id="comparison-in-dynamics"><strong>Comparison in dynamics</strong></h1><p>Let’s take <code>15 year</code> period and look at the performance of these strategies in dynamics. Initial atom supply in this example is <code>100 atoms</code>. In the beginning, four delegators have <code>10 atoms</code> each:</p><ul><li>D1 stake &amp; forget</li><li>D2 stake and compound</li><li>D3 stake and maintain the network ownership selling the rest</li><li>D4 just hold not staking at all Inflation is <code>7%</code> staking ratio constantly rises from <code>57%</code> to <code>77%</code> with a five year stop at <code>67%</code></li></ul><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/4-10.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/4-10.png 600w, https://economy.p2p.org/content/images/2020/09/4-10.png 938w" sizes="(min-width: 720px) 720px"></figure><p>For that period of time D1 ended with <code>34,82 atoms</code> accumulating <code>24,82 atoms</code> pending withdrawal, D2 ended with <code>98,88 atoms</code>, D3 earned <code>65,07 atoms</code> selling <code>17,32</code> of them during that time maintaining stake of <code>47,75 atoms</code> and D4 left with <code>10 atoms</code> like in the beginning. Overall holdings could be visualized in the following graph.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/5-10.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/5-10.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/5-10.png 1000w, https://economy.p2p.org/content/images/2020/09/5-10.png 1190w" sizes="(min-width: 720px) 720px"></figure><p>On that graph we do not count sold atoms of D3, even so, after some time a delegator who was selling the surplus of atoms would have more holding than one who had just passively staked. If we look at a network ownership dynamics we notice that at the finish D3 maintains higher share even without increasing it. If at the end of the experiment total holdings of each delegator are affected by double-sign slashing (except D4) we see that D2 will lose twice as many as D3.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/6-6.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/6-6.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/6-6.png 1000w, https://economy.p2p.org/content/images/2020/09/6-6.png 1190w" sizes="(min-width: 720px) 720px"></figure><p>In the first half of the period D1 had more atoms than D3 but It is possible to be higher on the graph for this period if D3 will release less profit and re-delegate more atoms in order to slightly increase his share but not as much as D2. For the first year you can re-delegate all provisions and slightly decrease re-delegation percentage for the following years but not breaking the initial ownership. In fact you can mix the option of compounding and partial selling in any variation that suits your expectations.</p><p>Network share changes differently for delegators. At the end of a period when inflation is decreasing because staking ratio is <code>&gt;67%</code>, D2 experiences the highest decrease in the network share growth while others experience a decrease in their network ownership losses.</p><figure class="kg-card kg-image-card"><img src="https://economy.p2p.org/content/images/2020/09/7-4.png" class="kg-image" alt srcset="https://economy.p2p.org/content/images/size/w600/2020/09/7-4.png 600w, https://economy.p2p.org/content/images/size/w1000/2020/09/7-4.png 1000w, https://economy.p2p.org/content/images/2020/09/7-4.png 1190w" sizes="(min-width: 720px) 720px"></figure><p>Simply speaking, it becomes more reasonable to implement the strategy of D3 when annual RoS is decreasing. If RoS is rising, network share growth rate is also rising boosting total holdings.</p><h1 id="conclusion"><strong>Conclusion</strong></h1><p>We discussed various options of managing staking balance mostly for educational purposes and deeper understanding of staking process economic variables. Inflation mechanism may drastically change in the near future as it would not be necessary to hold such a high rate of dilution if there were enough economic incentives to stake for participants, and revenues from transaction fees and other options would exceed inflationary rewards providing a stable source of income for validators to maintain their infrastructure and fund operational costs.</p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><hr><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Stake ATOMs with us:</strong></strong><a href="https://p2p.org/cosmos"> https://p2p.org/cosmos</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>

Alex Bond

from p2p validator