[SCP-50] Operate an Osmosis Validator on behalf of the ShapeShift DAO
Summary - This proposal would accomplish the following: A validator will be run on the Osmosis blockchain with the intention of providing a revenue stream for the DAO. This is the second validator proposal from TaxiStake. This proposal is scoped to one blockchain, Osmosis.
Abstract - Osmosis is an Automatic Market Maker (AMM) Decentralized Exchange (DEX) built on the cosmos SDK. ShapeShift DAO is currently building out an integration to support Osmosis functionality in the web app and mobile app. Osmosis Integration Post [https://app.boardroom.info/shapeshift/proposal/cHJvcG9zYWw6c2hhcGVzaGlmdDpkZWZhdWx0OnFtbnV5Y3NyZXhmZXN5dG9mazZlbWRzYW1vcnVpMXBjdnU0aGpwN2V5ZHZuZ3o=] TaxiStake has established its ability to operate a ShapeShift validator on the Cosmos chain and is proposing that the DAO establish a second validator, on the Osmosis chain.
Specification - We are proposing that the ShapeShift DAO continues to support and secure the Osmosis ecosystem by creating a ShapeShift DAO validator on the Osmosis chain. Setup and maintenance of the validator will be done by TaxiStake under the ShapeShift brand name. Rewards, in the form of USDT, would be distributed to the DAO’s Gnosis Safe to diversify the income streams of the DAO.
In the first month of operation, the ShapeShift DAO Cosmos validator has attracted over 1,500,000 ATOMs from delegators. In the first month, this generated 1,185.554836 ATOMs from commission. Mintscan - Chain explorer by COSMOSTATION [https://www.mintscan.io/cosmos/validators/cosmosvaloper199mlc7fr6ll5t54w7tts7f4s0cvnqgc59nmuxf]
The first payment to the DAO was sent on November 30th, 2021 with a deposit of 23,023.212074 UST sent directly to the Gnosis Safe on the Ethereum blockchain. Ethereum Transaction Hash (Txhash) Details | Etherscan [https://etherscan.io/tx/0x245701216ab808f87ada83f8b7b6061c70bd07b9930fbe02f9a46bf93ead72ea]
The 2nd Cosmos Validator payment was been sent directly to the Gnosis safe. 33,288 UST was deposited.
The 2nd payment was ~11,500 more UST (~53% more)
https://etherscan.io/tx/0xa3cc0dba43193b60ff7d77a06e582c875605b5d3b25a5d5ebf6656cb268d4ae2
We are proposing that the Osmosis validator commission be set at 5% and the commission from the ShapeShift validator will be distributed to the DAO treasury and TaxiStake in a 70%(DAO)/30%(TaxiStake) split of minus $2600/month for operating and maintenance expenses for a 12 month period starting February 1st, 2022 thru and including January 31st, 2023. TaxiStake is requesting 10,000 FOX for the initial setup and creation of an Osmosis validator. Osmosis users who delegate to the ShapeShift Osmosis validator will be supporting the ShapeShift DAO as well as securing the Osmosis network. Taxistake will convert the OSMO into USDT until Gnosis Safe adds ATOMs support or some synthetic ATOM on ETH exists.
A new Osmosis validator is now online at osmovaloper1xf9zpq5kpxks49cg606tzd8qstaykxgt2vs0d5 [https://www.mintscan.io/osmosis/validators/osmovaloper1xf9zpq5kpxks49cg606tzd8qstaykxgt2vs0d5]
Benefits - By creating a second validator for the ShapeShift DAO, the DAO can continue to expand revenue generating activities from staking activities.
Drawbacks - To be a validator in the top 100 requires a minimum of about 56,000 OSMO delegated at time of writing (about $300,000 USD). TaxiStake is working on ways to reach this threshold. There is an upfront request for 10,000 FOX ($6,200 @ $0.62 FOX).
Changes from Forum - The commission was dropped to 5% and the start date was pushed out 1 month to begin February 1st. Updated with the validator address, osmovaloper1xf9zpq5kpxks49cg606tzd8qstaykxgt2vs0d5.
Vote - If you vote “ for ” this proposal you are voting to create a ShapeShift Osmosis validator with the specific details laid out in this proposal. 10,000 FOX will be sent to TaxiStake. TaxiStake will provide regular payments of stablecoins in return for the use of the ShapeShift name on an Osmosis Validator.
If you vote “ against ” you are saying you do not believe this Osmosis validator should move forward per the details presented in this proposal.
Osmosis Validator Forum Post: https://forum.shapeshift.com/t/operate-an-osmosis-validator-on-behalf-of-the-shapeshift-dao/846/8
Osmosis Ideation Post: https://forum.shapeshift.com/t/scp-50-operate-an-osmosis-validator-on-behalf-of-the-shapeshift-dao-official-ideation-thread/912
Original Cosmos Validator proposal: https://app.boardroom.info/shapeshift/proposal/cHJvcG9zYWw6c2hhcGVzaGlmdDpkZWZhdWx0OnFtZDlhaGZ6YWx0enlnOGh1a3FlOXlkYXZyd2JocGRjbmpodGRrZmp2Z211c2w=
Osmosis integration proposal:
https://app.boardroom.info/shapeshift/proposal/cHJvcG9zYWw6c2hhcGVzaGlmdDpkZWZhdWx0OnFtbnV5Y3NyZXhmZXN5dG9mazZlbWRzYW1vcnVpMXBjdnU0aGpwN2V5ZHZuZ3o=
