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What is Cosmos?
Cosmos (ATOM) is a cryptocurrency that powers an ecosystem of blockchains designed to scale and interoperate with each other. The team aims to "create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralized way." Cosmos is a proof-of-stake chain.
What is delegation?
One of their options is to delegate crypto tokens — a process of contributing them to a public validator node to help it conduct PoS validation. By delegating to a trusted validator on a protocol such as Polkadot, Tezos, Celo, or NEAR, assets are put to work securing the network.
What is required from this analysis?
Let's explore movement of delegation on Cosmos.
When delegators un-stake from one validator and move to another, is there any pattern to where they re-stake? Are users more likely to re-delegate after their validator votes in a way they disagree with? Do they re-align their stake with validators whose values reflect their own?
How do validator votes change over the course of a proposal? Share any interesting voting statistics you find.
Examine any voting propositions here example: Prop 82 as a use case to explore these questions.
- Imperator.co, SG-1 and PosthumanDVS with 10K, 8.5K and 7.8K accumulated the highest number of reStakes with Imperator.co alone consisting around 17% of the top 10 destination receiving reStakes.
- With a volume of 8.3M reStakes, 0Base.vc by far have the highest volume of received reStakes (it alone consists more than 42% of the top10 destination) followed by SG-1, 3.1M(and highest average reStaked volume, 362) and Imperator.co with 1.59M reStaked.
Methodology
The needed data regarding movement of delegations and validators on Cosmos was extracted via mainly using tables cosmos.core.fact_validators and cosmos.core.fact_msg_attributes the extracted data on second part of the analysis was filtered by using proposal_id=82 as Proposal #82, ID, all of these tables were provided by Flipsidecrypto database and to make these raw extracted data more comprehensible all types of proper charts and graphs were utilized.
What is answered in this analysis?
- Weekly delegates/redelegates actions(Volume and count)
- Proposal #82 validators vote changes
- Top reStaking receivers(Volume and transaction)
- Lat week of Mar 28 and first week of Nov7(around FTX fiasco) recorded highest volume of redelegates in Atom (9.9M and 17M respectively) and early and late 2022 overall had lager volume of redelegates and in total 62M ATOM were redelegated.
- Seems that FTX crash and the following bear market in Nov showed it effect with larger volume of Atom being redelegated.
- Third and last week of Jun with 3.2K and 2.8K recorded the highest average volume, redelegated ATOM after that it dropped to 414 on the next week and overall other than mentioned spike and other surges to average redelegates on Apr and may average redelegates relatively had a stable trend/amount throughout the year.
- Since Dec 2021 there was a gradual increase to number of delegates and redelegates with an ATH to number of delegates/redelegates being recorded on last week of Mar 2022 with 5.5K delegates and 7.2K redelegates after that number of delegates/redelegates started a downward trend, dropping to an ATL of 978 and 1.2K respectively, on first week of Jun after that it started recovering.
- In mostly all of the year delegates to redelegates had a ratio of ~ 4 to 6 so overall there was redelegates than delegates (148K to 111K) with a healthy growth slope, indicates that Cosmos is retaining its interactions decently.
Conclusion
- June 2022 had the highest average redelegates volume and average volume had mostly side way trend considering the whole year same trend is true about the volume over time other than some spikes on Nov(which was the largest jump in redelegated volume(17M ATOM) FTX crash could be named as cause and late Mar. Overall trough there was not a notable upward or downward trend to redelegates volume but after and ATH to number of delegates and redelegates late Mar, number of delegates/redelegates declined but there is some signs of recovery after Sep 2022. There was 148K redelegates recorded against 111K delegates so Cosmos managed to do a decent job retaining the delegators.
- 70% of validators changing their votes to vetoed No caused proposal #82 to be rejected and most the votes were on Nov4 after that the hype surrounding prop 82 lost its momentum seems that most of the validators voted accordingly to their platforms benefit.
- Platforms Imperator.co, SG-1 and 0Base.vc with overall largest received reStake total/average volume and transactions seems to be the top favorite destinations for enthusiasts with the intend to reStake on Cosmos and with a relatively large margin between top 30 destinations visible it could be said that most of the reStakes are on the same platforms.
Thank you for your time!
- First 5 days of Prop82 received most of its validator vote changes with Nov4 accumulating the highest validator votes(8) after that number of the changed votes dropped significantly with no changed validator votes being recorded on Nov6 and 9 the prop82 receiving overall less votes could be a catalyst for validators votes dropping.
- 21, 70% of the validator votes were changed from YES, ABSTAIN and NO to vetoed NO and only 4 validator votes were changed to YES.
- Seems that majority of staking protocols were disagree with the proposal 82 and changed their votes to Vetoed NO.