Stride Transitioning to Cosmos Interchain Security System
Stride’s native token STRD is currently trading 0.7% higher as the liquid staking protocol prepares to transition to Cosmos’ interchain security (ICS) system. This transition is expected to significantly enhance the protocol’s security.
Key Points:
- The transition to Cosmos’ ICS system will boost Stride’s economic security from $25 million to $2.3 billion.
- The shift to ICS will utilize ATOM tokens, resulting in an 11,935.2% increase in economic security for the network.
- After the transition, Stride will be secured by staked ATOM instead of STRD tokens.
- Cosmos’ validator set will take over block production from the existing Stride validator set.
- STRD tokens will continue to have utility and generate staking rewards.
The transition will also impact STRD’s tokenomics, with a 50% reduction in staking rewards and 15% of rewards shared with Cosmos Hub. STRD currently has a market capitalization of $86.7 million, while ATOM has a market value of $2.73 billion.
Hot Take:
Stride’s transition to Cosmos’ ICS system is a significant move that not only enhances the liquid staking protocol’s security but also strengthens its ties with the larger Cosmos network. By utilizing ATOM tokens and involving Cosmos’ validator set, Stride is positioning itself for greater resilience and growth in the crypto market.
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