Thread by @cosmoshub

1/ Cosmonauts! You may have heard that Replicated Security is coming…

By staking #ATOM you will receive multiple new tokens from upcoming Consumer Chains.

The Cosmos Hub is transitioning to become an Interchain Service Provider.

So, in detail, what is Replicated Security?

2/ Replicated Security is a new upcoming feature of the Cosmos Hub, that will be introduced with the Lambda Upgrade (V9).

Originally named Interchain Security (ICS), specifically Interchain Security V1.

As of today the correct term to use is Replicated Security.

3/ Replicated Security is a shared security model. The Cosmos Hub will be able to offer security to new projects launching as Hub-secured consumer chains.

The Consumer Chain is a blockchain that leases security from the Hub.

4/ This means that the entire Cosmos Hub validator set is required to validate a consumer chain.

So the Cosmos Hub Validator Set is ‘’Replicated’’ on the Consumer Chain, providing security.

For using this service, the Consumer Chain shares revenue with the Hub.

5/ This revenue will be shared with #ATOM delegators/validators. 

So the Atom delegators will not only benefit from getting ATOM staking rewards, but also will receive additional revenue from consumer chains using Hub security. These will be claimable as ordinary staking rewards

6/ So, what is this additional revenue?

If the Consumer Chain has a native token, ATOM delegators will receive the native token of the Consumer Chain.

If it doesn't have a native token, ATOM delegators will get application fees generated by the Consumer Chain.

7/ A Consumer Chain can distribute revenues through:

Transaction Fees - Token Inflation - Application Fees

Transaction fees are generated by the Consumer chain activity, the % distributed to Atom delegators is by default 25%, but it can be increased and is subject to governance

8/ The consumer chain can also allocate a portion of their native token inflation to the Cosmos Hub validators and delegators, as “continuous airdrops”

If the consumer chain doesn’t have a token, it can provide application fees, like a percentage of the swap fees, usage fees etc

9/ Atom Governance will play a key role in defining Consumer Chain rewards in the onboarding phase.

Each Consumer Chain will be onboarded through a governance proposal approved by both stakeholders and >2/3 of the Hub validator set.

10/ Today we had a first glimpse of Replicated Security, we saw that it is a shared security model that offers Atom delegators/validators additional revenue for staking ATOM.

But there is much more behind this feature…

11/ With Replicated Security the Cosmos Hub will give birth to the Atom Economic Zone.

An Atom aligned ecosystem that will create new exciting dynamics yet to explore.

Cosmonauts we are entering an unexplored part of the #Cosmos

12/ More threads will be dedicated to exploring Cosmos Hub's new features and dynamics.

This is a beginner introduction to Replicated Security, that avoids technical information for later, focusing on a better understanding of the key terminology.

13/ For Cosmonauts aiming to understand more advanced technical details you can read the following Forum discussions:

Lambda upgrade:
forum.cosmos.network/t/proposal-dra…

Preparing for Replicated Security:
forum.cosmos.network/t/preparing-fo…

Release date updates:
forum.cosmos.network/t/update-on-th…