ATOM bulls watch closely as Cosmos interchain security prepares for March 15 launch
The Cosmos community has approved a vote to add “replicated security (RS)” to its chain, with 99.99% of votes in favor of the motion. The much-awaited upgrade is set to go live on March 15, 2023, with the v9-Lamba upgrade.
RS is the first version of Cosmos’s Interchain Security (ICS) feature, allowing blockchains in the Cosmos ecosystem to share validation resources for improved security.
Only protocols approved by Cosmos governance will be added as consumer chains in the upcoming update. Eight consumer chains are potential candidates for selection, including Neutron, PolymerDAO, Duality, Stride, Simply Staking, FairBlock and Comdex.
The Replicated Security feature will distribute up to 25% of the consumer chain fees to Cosmos Hub stakers. The protocols can also allocate a portion of token inflation and revenue streams to Cosmos (ATOM) stakers.
The ICS implementation allows consumer chains to focus entirely on the growth of the network’s economy, as Cosmos Hub’s validators provide reliable security against 51% attacks and double-spending. This will bring additional yield to ATOM stakers and allow consumer chains to optimize for growth.
The staking reward for ATOM after adjusting for inflation is 6.82%, with 24.37% annual returns. The additional consumer chain yields will improve ATOM holders’ annual yield, encouraging more buying and staking activity.
Neutron is a smart contract platform that will likely be the first consumer chain to use the new ICS feature. Avril Dutheil, general manager of Neutron, told Cointelegraph:
“As a result [of RS], Neutron does not have to inflate the Neutron (NTRN) supply continuously to keep validators honest or pay staking yield to governance participants since they do not contribute to
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