Cosmos-based liquid staking protocol Stride released a governance proposal in the Cosmos Hub forum, proposing to convert the entire supply of its token $STRD to $ATOM and use $ATOM as the new governance token to increase the decentralization of the protocol.
If the proposal got approved, Cosmos Hub would provision an amount of $ATOM for the conversion and receive 100% of the Stride protocol rewards. The Stride blockchain would become a satellite chain of Cosmos Hub. Stride contributors would continue working on Stride protocol, as well as helping out with Cosmos Hub.
"Given the decentralization, maturity, and neutrality of ATOM, it would be a more trusted governance token for Stride protocol, likely leading to an increased adoption of liquid staking," Stride said in the proposal.
The proposal is still in an early stage, and the conversion rate hasn't been decided. According to the Stride team, protocol contributors and investors would be subject to a vesting schedule, preventing them from immediately selling their $ATOM.
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