AGP-106 Discussion: Aragon One <> ChainSafe <> Cosmos AMA

[EDIT 10/24]

We just completed the AMA. Here is the recording:

In light of your upcoming vote regarding building your interoperable Aragon Chain potentially on Cosmos and built by ChainSafe, we are extending support to the Aragon community to get all of your questions and concerns addressed via an AMA.

We are collecting your questions now. Please post your questions on this thread and I’ll ensure they get addressed during the AMA.


While the AMA is in session, you are encouraged to join the conference call. However, to ensure that your questions get answered, please post them in a thread on this post. The AMA will be recorded and uploaded to various social channels should you miss the AMA. After the speakers have answered all of the forum questions, we will open it up to questions during the AMA when you “raise your hand” in zoom.


Moderator: Chjango Unchained | Cosmos
Gregory Markou | ChainSafe
Austin Abell | ChainSafe
Jorge Izquierdo | Aragon One
Billy Rennekamp | Cosmos
Jack Zampolin | Cosmos
Jae Kwon | Cosmos (tentative)


nice! i habe questions from this thread which didn’t get answered: ANT Derivative Tokens 🦅

(Though the inverse is not true, an increase in price of ANT won’t necessarily increase the price of ARA).

I don’t get this. if you have on the one side ARA marketcap and on the other side ANT value and the ANT value rises then ARA gets automatically created and if ANT falls in value ARA gets automatically burned? ARA tokens get inflated to pay validators or how does validators of the Aragon Chain get paid? and you need ARA for staking and the 100 validators with the most ARA staked will be validating the Aragon chain? so if the ARA supply gets inflated then each ARA tokens is worth less and less. To prevent this more ANT has to be staked? For what do you need ARA tokens? Would it be possible to buy ARA for ETH outside of the bonding curve? if this is possible then there would be two prices one bonding curve price and one free floating exchange rate and then you need market makers. so if the price of ARA goes up on the exchange then it would be profitabel to buy ANT to stake and get ARA to exchange for ETH.


most Cosmos proof of stake chains rely on a participation rate targeting mechanism where inflation is dynamically adjusted to ensure some percentage of the supply of is actively being staked

What is a participation rate targeting mechanism? So there would be an Inflation of ARA tokens? Why is there an inflation? What does actively staked mean?


Having a high percentage of the supply staked is considered a security/safety advantage because it impacts how quickly the active validator set can change.

Why can you change validators set more quickliy if 67% of ARA is staked? How does the active stake and the speed of changing the validator set correlate?

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Also on this thread I have the question:

The general approach to minimizing volatility is the use of an “algorithmic” central bank, which automatically mints and sells tokens in order to collateralize a reserve, and automatically sells collateral in the reserve in order to support a specific price target.

Could you give an example how this would work by ARA?

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How will the ANT/ARA bonding curve look like?
like this?:

Will it be possible to trade ARA directly on exchanges without using the bonding curve?