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ESG (Environmental, Social, and Governance) regulations for crypto assets aim to address their environmental impact (e.g., energy-intensive mining), promote transparency, and ensure ethical governance practices to align the crypto industry with broader sustainability and societal goals. These regulations encourage compliance with standards that mitigate risks and foster trust in digital assets.
Name | Bitpanda Asset Management GmbH, Bitpanda GmbH |
Relevant legal entity identifier | 9845005X9B7N610K0093, 5493007WZ7IFULIL8G21 |
Name of the crypto-asset | Osmosis |
Consensus Mechanism | Osmosis is present on the following networks: Cosmos, Osmosis. The Cosmos network uses the Cosmos SDK, a modular framework that enables developers to build custom, application-specific blockchains. Cosmos SDK chains rely on Tendermint Core, a Byzantine Fault Tolerant (BFT) Proof of Stake (PoS) consensus engine that supports interoperability and fast transaction finality. Core Components: 1. Tendermint BFT Consensus with Proof of Stake: Validator Selection: Cosmos validators are selected based on the amount of ATOM they stake or receive from delegators. These validators participate in block proposal and validation through a two-thirds majority voting system. Security Threshold: Tendermint BFT ensures network security as long as fewer than one-third of validators act maliciously. 2. Modular Cosmos SDK Framework: Inter-Blockchain Communication (IBC): The Cosmos SDK supports IBC, allowing seamless interoperability between Cosmos-based blockchains. Application Blockchain Interface (ABCI): This interface separates the consensus layer from the application layer, enabling developers to implement custom logic without modifying the consensus engine. Osmosis operates on a Proof of Stake (PoS) consensus mechanism, leveraging the Cosmos SDK and Tendermint Core to provide secure, decentralized, and scalable transaction processing. Core Components: Proof of Stake (PoS): Validators are chosen based on the amount of OSMO tokens they stake or are delegated by other token holders. Validators are responsible for validating transactions, producing blocks, and maintaining network security. Cosmos SDK and Tendermint Core: Osmosis uses Tendermint Core for Byzantine Fault Tolerant (BFT) consensus, ensuring fast finality and resistance to attacks as long as less than one-third of validators are malicious. Decentralized Governance: OSMO token holders can participate in governance by voting on protocol upgrades and network parameters, fostering a community-driven approach to network development. |
Incentive Mechanisms and Applicable Fees | Osmosis is present on the following networks: Cosmos, Osmosis. The Cosmos network incentivizes both validators and delegators to secure the network through staking rewards, funded by transaction fees and newly minted ATOM. Incentive Mechanisms: 1. Staking Rewards for Validators and Delegators: ATOM Rewards: Validators earn staking rewards in ATOM tokens for participating in consensus, with rewards shared with delegators who stake ATOM through delegation. 2. Slashing for Accountability: Penalties for Misconduct: Validators who act maliciously, such as double-signing or staying offline, face slashing penalties, which remove a portion of their staked ATOM. Delegators may also experience slashing if their chosen validator is penalized, encouraging careful selection of trustworthy validators. Applicable Fees: 1. Transaction Fees: User-Paid Fees in ATOM: All transactions on the Cosmos Hub incur fees paid in ATOM, compensating validators for transaction processing and helping to prevent network spam. 2. Customizable Fee Model: Custom Token Fees: Cosmos SDK allows individual chains to define their own transaction fees in tokens other than ATOM, supporting varied application requirements within the ecosystem. Osmosis incentivizes validators, delegators, and liquidity providers through a combination of staking rewards, transaction fees, and liquidity incentives. Incentive Mechanisms: Validator Rewards: Validators earn rewards from transaction fees and block rewards, distributed in OSMO tokens, for their role in securing the network and processing transactions. Delegators who stake their OSMO tokens with validators receive a share of these rewards. Liquidity Provider Rewards: Users providing liquidity to Osmosis pools earn swap fees and may receive additional incentives in the form of OSMO tokens to encourage liquidity provision. Superfluid Staking: Liquidity providers can participate in superfluid staking, staking a portion of their OSMO tokens within liquidity pools. This mechanism allows users to earn staking rewards while maintaining liquidity in the pools. Applicable Fees: Transaction Fees: Users pay transaction fees in OSMO tokens for network activities, including swaps, staking, and governance participation. These fees are distributed to validators and delegators, incentivizing their continued participation and support for network security. |
Beginning of the period | 2024-09-13 |
End of the period | 2025-09-13 |
Energy consumption | 105130.51200 (kWh/a) |