The Atom Accelerator DAO (AADAO) is committed to funding initiatives that drive infrastructure enhancements and foster new use cases and onchain activity for the Cosmos Hub. One of our latest grantees that help kick these ambitions into play is Hypha.
Since November 2023, we have supported Hypha’s Testnet Incentivization Program (TIP) to ensure continuous validator participation in a much-needed consistent testnet for the Cosmos Hub. Additionally, with the introduction of Interchain Security (ICS) 2.0 and its groundbreaking technology, we funded Hypha’s ISLE testnet to maximize validator involvement and thorough testing before its release.
In this blog post, we highlight Hypha and the progress of these latest grants that support driving engagement and streamlined transitions for the Cosmos Hub and its validator network.
About Hypha
The Cosmos team at Hypha Worker Co-operative has been a core contributor to the Cosmos Hub since 2022, spearheading multiple incentivized programs, including the renowned Game of Chains incentivized testnet, which brought Interchain Security to the Hub.
In anticipation of the Gaia v17 Cosmos Hub software upgrade and those to follow, Hypha requested funding for validator participation incentives, for two testnet initiatives. Testnets are important to ensure that upgrades and updates to the Cosmos Hub are bug-free, and run in an environment similar to that after launch on the mainnet. To replicate this mainnet enviironment, the aim is to have as many mainnet validators as possible participating in the testnet, and Incentives on testnets help increase this participation from validators.
To support this vital work, the AADAO has provided Hypha with a grant of $50,000 USDC for its ISLE testnet (testing ICS 2.0), and renewed our funding for another 6-month of the day-to-day Testnet Incentives Program (TIP), with a second grant of $77,000 in USDC .
With this funding, the AADAO is able to support Hypha in raising awareness about the positive effects of this upgrade on the Atom Economic Zone (AEZ) and further enhance validator and stakeholder confidence and participation within the Hub’s network.
Driving Value to the Hub
Validators form the foundation of a network. For innovative features to succeed, validators need the opportunity to work with them before they go live.
The latest Interchain Security version, ICS 2.0, also known as Partial Set Security (PSS), introduced a complex economic framework in the Gaia v17 upgrade, requiring strict changes to validator operations.
Hypha’s main mission with the first grant for the ISLE testnet was to incentivize training around ICS 2.0, ensuring validator and stakeholder awareness and expertise, facilitating communication between consumer chains and Hub validators, as well as generating overall excitement for this upgrade.
Lexa Michaelides, Program Manager at Hypha Worker Co-operative, stated, “What we’ve achieved is having 25% of the Hub’s active set gain hands-on experience prior to the technology hitting mainnet, and all of those validators are now in a great position to lead the Hub’s set in interacting with ICS 2.0.”
ISLE Testnet Implementation & Results
Hypha’s ISLE incentivized testnet, dubbed the “lightning experiment,” spanned five eventful days in May 2024. It was deemed a success, launching five different consumer chains and effectively training forty-five Cosmos validators in transitioning to ICS 2.0, with twenty of them achieving a perfect score (129.00) in every event.
This chart displays the validator scores for the ISLE testnet, with the y axis being the number of validators, and x axis being the number of points received.
The team leveraged learnings from their previous incentivized testnet (Game of Chains) to enhance ISLE, providing more opportunities for validators to experiment and ask questions, allowing Hypha to identify key areas of interest and necessary clarifications, which were then integrated into the ICS 2.0 documentation to ensure a smoother launch event.
Within two weeks of planning the testnet, Hypha received the grant, ran the testnet, and paid out the eligible validators within the program. This enabled a fast-acting yet impactful solution to spreading awareness and education around the upgrade.
If this program had gone through Community Funding instead of the AADAO grant program, the process would have taken at least twice as long, delaying the planned launch of ICS 2.0. By providing a strategic grant, the Atom Accelerator DAO literally accelerated ATOM, further enabling Hypha’s initiative and supporting ICS 2.0’s goal timeline to enhance the AEZ.
Participating validators, such as Everstake and HighStakes, praised the ISLE testnet’s organization and quality, leading to further interest in upcoming testnet opportunities, such as Hypha’s more long-term, 6-month testnet campaign which launched its second round just a few days after ISLE concluded.
It’s important to note that the $50,000 grant was paid out in USDC so as not to incur ATOM sell pressure with validator rewards. $30,000 of the grant was distributed as rewards to the eligible validators, resulting in Hypha returning $20,000 of the grant to the AADAO. Read further into the ISLE testnet results here.
Hypha’s Persistent Testnet In Action
Hypha began a 6-month pilot Testnet Incentives Program (TIP) back in November 2023, aiming to directly support mainnet validators performing at a high level on the Hub’s Interchain Security testnet. This program incentivizes the validators to reliably participate, provide feedback to consumer chain teams, help other validators join the testnet, and more.
The first round of the program, also funded by an AADAO grant, concluded and was a success. Having incentivized 40–50 validators participating each month, with 15–20 of them qualifying for monthly rewards.
The results of Hypha’s Testnet Incentives Program, Round 1.
The second round of this program started on May 29, 2024 leveraging this latest grant from the AADAO, and is still ongoing, open to all active Cosmos Hub validators to join in. Discover how to apply here.
Final Thoughts
Overall, with the success of ISLE testnet and the ongoing TIP, Hypha continuously makes a positive impact on the Cosmos Hub, providing hands-on experiences to enhance validator participation to foster an educated and high-performing network and strengthen the AEZ.
As the Hub continues to evolve and expand, incentivized initiatives such as these are key to ensuring smooth transitions, a robust network security, and further validator engagement. The AADAO is proud of Hypha’s latest results and looks forward to seeing these initiatives continue to support the ecosystem.
Keep up to date with Hypha’s testnet initiatives around the Cosmos Hub by visiting their website or following them on Twitter.
Are you driving value to the Cosmos Hub?
Funded by the AADAO, Hypha is bringing forward strategic initiatives to enhance the Cosmos Hub’s infrastructure, activity and use cases. These efforts are expected to play a significant role in the Hub’s growth by addressing current challenges and fostering new opportunities for development and collaboration within the ecosystem.
Are you building a project that could help drive value for the Hub? If so, be sure to check out our Funding Themes and apply for a grant today.
About the Atom Accelerator DAO
Atom Accelerator DAO (AADAO) is a governance-mandated DAO of the Cosmos Hub. We have been formed and mandated to drive value for the Cosmos Hub & ATOM, supporting initiatives that either directly create economic impact or produce value that can drive its growth. From this, our current primary mandates are public grants & venture grants.
Atom Accelerator’s venture arm strategically invests in promising early-stage Web3 founders and startups both within and outside of the Cosmos Hub’s ecosystem. As experts within the Cosmos ecosystem, Atom Accelerator offers expertise, guidance, and support while driving value toward ATOM.
In 2023, we deployed $3.8 million in grants to 39 recipients — resulting in, among other things — a $22m USD airdrop to the Community Pool, an AEZ Accelerator program to expand the AEZ, a successful hackathon with 42 project submissions bringing innovations to the AEZ — and many other key initiatives. Read about them in our 2023 Impact Report.
