Cosmos ⚛️ February 2020 Network Analysis

Cosmos February

Key Metrics

  • Updated key metric: staking economics – effective inflation (& rewards) lower than what’s reported
  • Mar 1 Community Pool balance ~313k ATOM
  • Mar 1 reported inflation has bottomed out at 7.00%, but it’s effectively 6.41%
  • Effective inflation is 6.41% & effective rewards rate is 8.59% (know the difference! article updated)
  • Feb 20 – slight increase in power for top validators

You can find January’s network analysis here.


Key Metrics

I take a snapshot for these metrics on the 20th day of each month.

Cosmos February

There are 1M fewer ATOMs staked this month than last and the ratio of ATOM staked has decreased. The number of newly-minted ATOMs is in keeping with the monthly average of ~1.4M.

Cosmos February

Inflation has decreased, as expected, and as of Mar 1, 2020, reported inflation will remain fixed at 7%. However, as I mentioned in this updated article, inflation will still vary based on block times. Inflation will only begin to increase if the ratio of staked to liquid ATOMs drops below 67%.

Even though inflation has decreased, staking rewards haven’t changed much because there are fewer ATOMs staked.

Cosmos February

The Community Pool has a balance of ~313k ATOM as of Mar 1, 2020. Between Jan 20 and Feb 20, the pool increased by just over 22k ATOM, and no ATOMs were spent.

Cosmos February

Voting power amongst validators hasn’t changed a great deal, except that the power of the bottom 90% of validators has decreased by 1% and the bottom 75% of validators has decreased by 2%.

Cosmos February

What’s the importance of validator voting power? Validators can work together to form a cartel to make changes to the Cosmos Hub. As of Feb 20, 2020, the top 6 validators could halt the chain and veto a proposal. The top 12 validators can pass a governance proposal unless delegators override or unless over 1/3 of the voting power vetoes. The top 20 validators would need to work together to take control of governance or to defraud other chains (once IBC is enabled).

Cosmos February

That’s all folks!

Not a lot of network news this month–let me know if I’ve missed something important. If this sort of data interests you, check out KysenPool’s Cosmos Outpost for other statistics. I’d be grateful for new ideas and additional key metrics.

Thanks to Winslyn (Staking Fund) & Hyung (B-Harvest) for alerting me to the effective vs reported inflation rate 🙏

Hopefully you found this useful. Questions? Comments? Feedback is always welcome! I’m on Twitter.