Looks really interesting.
I had to read the crowdsale info page a couple of times to understand it though and just to make sure I'm clear now:
A 'bonded atom holder' is just someone who has voted for a validator, or is a validator, and therefore gets rewards? And getting 'unbonded' just means you don't get those rewards anymore? There is no definition of these terms so its very confusing.
Also there is a section which says: "One third of the total number of atoms will be distributed back to the bonded atom holders for having a stake in consensus. This is a tax (disincentive) for not putting atoms at stake, and not participating in governance during the first two years after genesis. " I presume this actually means one-third of the block reward rather than one-third of the total number of atoms?
Thanks for your questions. A bonded atom holder
(or bonded stakeholder) is someone who put their atoms at stake by posting collateral with those atoms. These atoms are said to be "held in bond
". Bonded atoms can't move unless they've become inactivated, and wait the "unbonding period
". Then they become unbonded and can be moved freely. This is partially what solves the "nothing at stake
" problem. (Bonding is not a sufficient solution to the nothing at stake problem, the other solution is "fork-accountable
" BFT consensus.)
A bonded atom holder earns inflationary rewards and tx fees, in proportion to how many atoms they have bonded (compared to the total number of other bonded atom). Getting unbonded means waiting the "unbonding period", and yes, during the wait time and afterwards you are no longer earning rewards or tx fees. In short, you're earning rewards and fees only if you put your tokens "at stake".Block rewards and transaction fees *only* go to the bonded atom holders
. Besides the tx fees, there are inflationary atoms that are given to the bonded atom holders. Every year, 1/3 of the total atom supply is inflated and given to the bonded atom holders. As you can see, atoms are not a good store of value -- if you're not using them, putting them at stake by running a validator or delegating to other validators, you're paying the inflation tax.
Atoms aren't a good store of value, but other tokens on Cosmos may very well be. If you just want to hodl, atoms aren't for you. Otoh, if you want to have good op-sec and help secure the Cosmos zones, or if you think you know how to determine which validators are more likely to succeed/get-hacked, then atoms are for you.
Atoms are like virtualized proof-of-work miners. There's no point holding them if you're not going to use them.