0
0
News

Cosmos's Interchain Foundation Updates ATOM Delegation Program

The OG ecosystem steward believes its ATOM delegation changes will better align incentives to grow Cosmos Hub.
0
0
Feb 26, 20261 min read

Interchain Foundation – steward to the Cosmos blockchain ecosystem and major ATOM whale – is updating the terms of its ATOM staking delegation program.

The Swiss non-profit posted to X that the changes will, "better align incentives, support high-performing validators, and strategically empower partners who help grow the Cosmos Hub and broader ecosystem."

What's the Scoop?

  • Updated Program: Earlier this week, the Interchain Foundation (IFC) announced an updated version of its ATOM delegation program, which seeds eligible validators with ATOM tokens that they can use to participate in Cosmos governance. The updated program expects to delegate 13.5M ATOM across 74 validators in the first quarter, with each qualifying validator will receive approximately 186,206 ATOM.
  • Two Tiers: ICF will delegate ATOM to both "default" and "growth" validators. While the qualification criteria for the second category is fairly subjective, default validators must meet stringent criteria, including having participated in more than 80% of governance votes from February 18, 2021 to Dec 31, 2025 (before the previous bull market had begun). Delegations will be reassessed on a quarterly basis.
  • Testnet Requirement: Beginning with the Q3 delegation adjustment, delegation recipients must participate in the Cosmos Hub Testnet run by Hypha. Following future adjustments, ICF will require eligible validators to maintain 80% uptime on testnet and score 6 "testnet points" per quarter
  • Increased Potency: The changes will reduce the number of eligible validators by nearly 30%, while increasing the number of ATOM delegated by over 70%, vastly increasing the potency ICF delegations.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.