Stride Blockchain Will Move to ATOM-Powered Security Model

Stride, the Cosmos-based liquid staking protocol, is scheduled to modulation to Cosmos' interchain information (ICS) strategy powered by ATOM tokens from the existing stride (STRD) token model.

"The modulation volition apt hap connected Wednesday betwixt 17:00 UTC and 21:30 UTC astatine artifact tallness 4616678," Stride's contributor Ian Unsworth told CoinDesk.

"While Stride has $35 cardinal positive successful full worth locked, it lone has $19 cardinal of economical information via bonded web tokens. Following the ICS transition, artifact production/security volition beryllium passed to the ATOM validator set, providing astir a 11,935.2% summation connected the economical information of the network," Unsworth added.

Per the official blog, the displacement to ICS volition boost Stride's economical information from astir $25 cardinal to $2.3 billion, making the liquid staking protocol much resilient to hacks.

Cosmos' interchain information leases ATOM-backed validators to user chains, allowing them to stock Cosmos' information utilizing ATOMS alternatively of their autochthonal tokens. Cosmos Hub, a blockchain intermediary among each autarkic blockchains created wrong the Cosmos network, runs a proof-of-stake statement mechanics that involves ATOM tokens.

It means that post-transition, Stride volition beryllium secured by staked ATOM alternatively of STRD tokens and Cosmos' validator acceptable volition instrumentality implicit artifact accumulation from the existing Stride validator set. Stride volition fundamentally go a user chain, allowing Hub's validator to enactment successful its consensus. STRD volition proceed to person utility, generating staking rewards. At property time, the marketplace capitalization of STRD tokens was $86.7 million, portion ATOM boasted a marketplace worth of $2.73 billion, per information root Coingecko.

The modulation volition besides interaction STRD's tokenomics, fixed stakers person decided to trim STRD distributed arsenic staking rewards by 50%. Further, 15% of the STRD staking rewards volition beryllium shared with Cosmos Hub.

"STRD has a hard headdress of 100 cardinal tokens. According to the archetypal tokenomics, successful the archetypal year, 2,608,200 STRD is emitted arsenic staking rewards. As portion of Stride’s modulation to ICS, that fig volition beryllium reduced by half, to 1,304,100 STRD annualized. This simplification volition beryllium implemented successful a preparatory concatenation upgrade anterior to the modulation to ICS," the authoritative blog said.