Creating A COSMOS Keiretsu


#1

While participating at the Interchain Foundation and @Hack4atom event with my commercio.network team I talked with a lot people, doing different projects and ideas. Most of them shared with me the same problems:

  1. Cosmos zone projects needs funding and validators
  2. Cosmos validators needs more ROI for their infrastructure

I had an idea that might solve both problems at once:

Let’s create a Cosmos Keiretsu.

Keiretsu is a business network composed of companies who remain financially independent but work closely together to ensure each other’s success.

From wikipedia: “A keiretsu (Japanese: 系列, literally system grouping of enterprises) is a set of companies with interlocking business relationships and shareholdings. The member’s companies own small portions of the shares in each other’s companies, centered on a core bank; this system helps insulate each company from stock market fluctuations and takeover attempts, thus enabling long-term planning in projects. It is a key element of the manufacturing industry in Japan.”

A bunch of happy kids that play together should inspire grownups…

This Keiretsu concept could be extended to the COSMOS ecosystem to foster growth, increase stability and enable long-term planning and success.

My idea is that we could create a Keiretsu between Validators and Cosmos Projects Zones:

I propose starting from something very small, informal and unstructured and if it works make it slightly more formal and structured.

Phase I

Cosmos Zones becoming Validators for other Cosmos zones

Each project in the Cosmos space should take time to reach other projects that looks good to them, Join the testnet and meet other people online and offline.

Advantages:
-Reaching 100/150 Validators faster
-Exchanging Zone tokens 1:1 with each other
-Learning about alternative governance models

Phase II

Cosmos.network Validators becoming validators for Cosmos Zones

Existing top cosmos.network validators could be the the new “Angel/VC” of the Cosmos Ecosystem by reaching out projects and “invest” in their project by acquiring Tokens at early stage of development.

Advantages:
-Diversification of Token portfolio
-Additional revenues with the same validator Infrastructure
-Helping the Ecosystem growth

Phase III

Sharing local Cosmos Zones Validators with other Cosmos Zones

Each new Cosmos Zone will brings some “local/sector” validators. Mainly because they are the end user of the application that the zone project is developing. They could be interested in becoming validators for other zone projects as well, so why not sharing validators . It’s like the speed dating event we did in Berlin.

Advantages:
-Additional Global Coverage and visibility
-Geographic and Jurisdictional heterogeneity
-Creating opportunities outside your own social network

Possible challenges and Solutions to this approach

I just pointed out all the advantages for forming a Cosmos Keiretsu , but of course there are many challenges to overcome:

  1. Establishing minimum Entry criteria for Joining the Keiretsu
    (example having done some work beyond a white paper)

  2. Establishing the Value of the presale Token for zone projects
    (are the last 5/10 OTC token sales a good indicator of the value)

  3. Building the initial trust while keeping it informal
    (meeting at Confernces and hackatons)

  4. Limit Scams and Free-riders that game the system
    (how we can early detect them)

  5. Clarifying the different set of rules each Cosmos zone project might have
    (can we define an common Governance outline)

  6. Establishing a transparent independent “market place” for projects
    (dex for ehhm “company” tokens)

  7. The challenge you thought, reading this article, that is not yet listed

I would like the Staking Defense forum members to me point out challenges and working together at solutions: This is the first draft of the idea…


#2

I think this is happening informally, what do you think the role of more formal arrangements is? What benefits or challenges does formalizing process around these sorts of relationships offer?


#3

I think the same , there is a lot of informal discussion between validators and between validators and new projects(zones). Not sure what else you want.
I don’t think we should really direct what zones do i.e. run token sales , advise maybe but too tight a relationship may lead to collusion.
Also I don’t like the idea of creating a club for 150 validators … how do new ones enter the club , what are the minimum entry requirements ?

-Exchanging Zone tokens 1:1 with each other … for what purpose ? How does this diversification of tokens help ?

These are still early days so discussions like this are welcome and I think the initial direction should be perhaps more meetings at least an online call on youtube perhaps once a month. This will also let delegators know the validators and how they work, concerns etc.


#4

Here are two points related to this idea, that motivated me to start the Defenders -

1 - Resource Pooling and Sharing

Can we figure out a way to amplify our individual resources, by combining them?

2 - Trusted and Verified Criteria

Can we develop a set of trusted criteria, then verify them, indicating validators whose operations are consistent with the Defenders’ values?


#5

I am not really thinking about creating an organization, but rather something more than nothing : ) Maybe a web site, maybe just an updated post in this forum…


#6

-Directing: No, I am not interested in directing… rather informing. And maybe even give some possibly unbiased information to make a choice. But ultimately it is always a individual choice to collaborate with someone else and create a relationship. You still need to know about a project to even start a conversation.

Exchanging Zone tokens. The rationale behind it is this: Since I think most zone will have a Token, It would be great to have a way to have a OTC way to get hold of each other tokens. Having someone else network’s token, will give an incentive to help and think beyond your own garden and foster collaboration.

Online monthly Meeting: Yes!! let’s go for it. Talking to each other is the best, to break ice.


#7

Resource Pooling and Sharing

yes, we are building a multi chain Explorer (almerico) and a multi-chain/Multi-platform wallet (borsellino). Each zone Project could benefit from it. It would be great to collaborate.

Trusted and Verified Criteria

this is one of the main challenge… yes we could start by asking each validator what are their main points they look into selecting to validate a project. This discussion is on the right track: Choosing Which Staking Networks to Validate On