Analysis of COSMOS Hub and OSMOSIS merger proposal, who supports who supports who opposes

Author: yyy Source: x,@y_cryptoanalyst

Talk about the merger of @cosmoshub and @OSMOSISISISZONE, which has been rushing in the past two days

So is OSMOSIS rescued Hub or OSMOSIS destroyed Hub?The supporters of these two communities scrambled red ears, and no one could persuade the other party.

1. Summary of the merger proposal

@COSMOSHUB and @OSMOSISISZONE merge into a unified blockchain ecosystem.COSMOS Hub is the security center of the COSMOS ecosystem, and OSMOSIS is the largest AMM DEX as COSMOS ecosystem.Combining can integrate their respective advantages and optimize resource allocation.

Proposal process:

Subult an extension proposal on @cosmoshub.
A proposal was initiated on @osmosiszone.That is, both bilateral proposals must be passed to be effective.

Details of currency replacement:

Through smart contracts, deposit in $ OSMO, and get $ atom.The currency exchange price is fixed, and the 12 -month average + x%% premium (the specific premium ratio is still discussed); the conversion period is 3 months.

Merger mechanism:

Phase 1:OSMOSIS is the $ Atom consumer chain (ICS Chain) without a native currency.OSMOSIS is the core positioning of the COSMOS ecological AMM DEX, and $ atom is the only pledged token and governance tokens.
Phase 2:The status of the COSMOS Hub and the OSMOSIS chain is merged into one, that is, the dual chain becomes a single chain.

2. Community discussion

Once the merger was issued, it set off a stir in the COSMOS community.

Supporters believe:

Combination is conducive to resource integration and expand the overall influence of the Cosmos ecosystem.
Combining is conducive to the introduction of BTC liquidity (OSMOSIS founder @Sunnya97, he pointed out that the effect is similar to @thorchain’s product RUNEPOOL).

Opponents believe:

There are already lessons from the front car, and there is no need to repeat the same mistakes.There have been Gravity DEX on the COSMOS Hub, but because of various reasons, OSMOSIS should not embark on this old path of Gravity DEX.
The governance authority of OSMOSIS pledges has been greatly weakened.The full circulation market value of $ OSMO is $ 400 million, which is only 1/5 of the $ ATOM circulation market value. The conversion will greatly weaken the governance authority of the original $ OSMO pledker.
The potential of the throwing of ICF and AIB + from a hard -top token to an inflation token.

My idea:

Let me keep neutral.

The merger of COSMOS HUB and OSMOSIS is not a traditional merger and acquisition in the traditional sense. It does not use the funds of the community pool to repurchase.All $ 100 million); in addition, a certain premium of OSMOSIS holders must be given in the conversion ratio.If the 50%premium proposed by the draft, it is equivalent to $ 600 million in a market value of $ 600 million out of thin air.

Weighing point:A series of positive effects such as the negative effects of Atom diluted and the combination of functions and mergers need to be weighing.