Wednesday

Stride

Security

Cosmos

<a href="https://bitcoinworld.co.in/stride-blockchain-will-move-to-atom-powered-security-model/" title="Stride Blockchain Will Move to ATOM-Powered Security Model" rel="noopener noreferrer nofollow"></a> 
Stride, the liquid staking protocol built on Cosmos, is set to undergo a significant transition from its existing token model to Cosmos’ interchain security (ICS) system powered by ATOM tokens. This move aims to enhance the protocol’s economic security and resilience against potential hacks. The transition is scheduled to take place on Wednesday at block height 4616678, as confirmed by Stride contributor Ian Unsworth. 
Increased Economic Security and Block Production: 
Currently, Stride boasts over $35 million in total value locked, but only $19 million in economic security through bonded network tokens. However, after the transition to ICS, the protocol will shift block production and security responsibilities to the ATOM validator set. This change will provide a substantial 11,935.2% increase in the network’s economic security, boosting it from approximately $25 million to $2.3 billion, according to Unsworth. 
The Role of Cosmos’ Interchain Security: 
Cosmos’ interchain security enables consumer chains like Stride to leverage the security of the Cosmos network by leasing ATOM-backed validators. This system allows chains to utilize ATOM tokens instead of their native tokens to benefit from Cosmos’ security. In this case, Stride will transition to being secured by staked ATOM instead of STRD tokens. The Cosmos Hub, which acts as an intermediary among independent blockchains within the Cosmos network, employs a proof-of-stake consensus mechanism involving ATOM tokens. 
Changes to Tokenomics and Staking Rewards: 
Following the transition, Stride will operate as a consumer chain, with the Cosmos Hub validator set participating in its consensus and block production. While STRD tokens will retain utility and continue to generate staking rewards, the tokenomics will be adjusted. Stakers have agreed to reduce the distribution of STRD as staking rewards by 50%. Additionally, 15% of the STRD staking rewards will be shared with the Cosmos Hub. 
Preparatory Upgrade and Hard Cap: 
As part of the preparatory chain upgrade before the transition to ICS, the emission of STRD as staking rewards will be reduced by half. The original tokenomics set the emission at 2,608,200 STRD in the first year, but it will be adjusted to 1,304,100 STRD on an annualized basis. It is important to note that STRD has a hard cap of 100 million tokens. 
Stride Protocol’s transition to Cosmos’ interchain security system powered by ATOM tokens marks a significant step towards enhancing the protocol’s economic security. The shift will provide a substantial increase in economic security and pass block production responsibilities to the ATOM validator set. This move demonstrates the protocol’s commitment to resilience and sets the stage for a more robust and secure liquid staking environment. 
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The post <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in/stride-blockchain-will-move-to-atom-powered-security-model/">Stride Blockchain Will Move to ATOM-Powered Security Model</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Stride Blockchain Will Move to ATOM-Powered Security Model

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