Cosmos upgrades to Cosmos Hub 3 to add new governance capabilities

Cosmos launched the Cosmos Hub 3, its first significant protocol upgrade in almost eight months, to add a few key governance features. Previous Hub versions allowed ATOM holders to submit on-chain votes for upgrade proposals, but the process could not automatically trigger code changes. With the latest upgrade, Cosmos Hubs can now issue automatic software releases post-vote for accepted proposals (without requiring a hard fork), and each upgrade proposal can include multiple parameter changes.

Why it matters:

• This governance structure is eerily similar to that of Tezos, which in addition to its end-to-end on-chain process for implementing protocol changes, also features a delegated and coin-weighted voting system. While more efficient, these types of on-chain voting systems run the risk of letting a small minority (in this case, ATOM whales and validators) have undue influence over the future direction of the network. Automatic upgrades may compound the risks as the fate of proposed code changes are virtually unstoppable once the voting period begins.
• The upgrade is significant, but it is unlikely to have any impact on the roadmap for Cosmos’ Inter-Blockchain Communication (IBC) module, the communication protocol that will enable cross-chain transfers between heterogeneous networks. Cosmos is planning to launch an adversarial testnet competition, called Game of Zones, in early 2020 to challenge the limits of the IBC. A full Cosmos network, complete with interoperability capabilities, will not arrive until after Game of Zones ends.