For example, if you have CRO tokens on the Cronos chain but want to use them on Osmosis, staking your CRO for IBC liquidity allows someone transferring assets between these chains to pass through it, earning rewards in OSMO tokens based on how much liquidity was provided. The Interchain Allocator is a magical fairy that helps align incentives and encourages cross-chain transactions in the Cosmos ecosystem!

However, recent proposals for ATOM 2.0 have introduced significant changes to the issuance schedule of ATOM and goal to enhance its utility through liquid staking. The proposed monetary policy temporarily increases issuance (relative to historical rates) for the first 9 months before falling below current levels and continuing to decline over subsequent years, eventually arriving at a steady-state annualized issuance rate of ~0.1%. While this proposal equates to ~88M ATOM being issued over three years with ~55M directed towards the Cosmos Hub Treasury, concerns have been raised about near-term dilution and the need for more well-defined tooling for community coordination in deploying that capital sensibly.
Another proposed feature is the Interchain Scheduler, which facilitates an interchain MEV marketplace on-chain. Assuming cross-chain activity continues to grow, the opportunity for MEV across the Cosmos ecosystem will be significant. However, not all forms of MEV are created equal and off-chain cartelization can advantage a small minority of market participants. The goal of the Interchain Scheduler is to create a rational, transparent, trust-minimized marketplace for MEV, allowing appchains to voluntarily sell blockspace in an auction format in an effort to incentivize efficient forms of MEV and minimize malicious ones.
The collective goal of these proposals is to allow the Cosmos Hub to become a credibly neutral provider of security while further aligning the incentives between appchains and ATOM holders, increasing the likelihood that ATOM will generate a monetary premium. While the V2 proposal introduces innovative ideas goaled at achieving this vision, we remain wary of the suggested changes to ATOM’s monetary policy and whether the benefits of future capital deployment by the Cosmos Hub Treasury warrant near-term dilution for token holders.