I am currently a TFL employee. (I am not longer a TFL employee, effective 15-March-2022)
I run a validator, and
I also run some relayer nodes.
No funds from what I am proposing will go to me, in any way shape or form.
I am also not doing this on behalf of anyone except myself.
As most of you are aware, the terra chain has multiple bridges that allow people to transfer assets, one of those is called IBC, which allows people to transfer assets across the cosmos set of networks, like Osmosis, Juno, Secret, and of course Cosmos.
(see map of zones for a more precise list.)
In order to relay assets across the network, you need to submit transactions on each chain, and on terra that costs gas fees.
For the popular channels, this can cost a few thousand dollars a month each in fees alone for each participant. (not including hardware)
At the moment the people providing relaying services are doing this for the sake of the network, and have done so for the last ~6 months.
Due to the costs involved in doing this, some of the people providing relaying services have dropped out, and the remaining have taken turns keeping the relaying services up and running.
What I am asking for
I am asking for 3 things
- Reimbursing relayers for the fees they have incurred so far
- Paying relayers for the fees on a ongoing basis future basis until they can recoup their costs by other means
- Paying relayers for a component of their infrastructure costs to run these services.
Reimbursement of fees
Relayer’s costs are visible on-chain, and easily auditable.
I am proposing that they are get reimbursed at 150% of their costs incurred until March1 2022. The 50% markup is a way of thanking them for stepping up.
We reimburse them at 110% of their costs ongoing.
I propose we pay relayers to put towards their infrastructure costs. This would not be the full cost of the infrastructure required, but will help them.
How much am I asking for
I estimate the overall monthly ask for this will be ~20,000 UST/month. (120k/year).
I am asking for $1million UST to be deposited in Anchor earn, and the interest yield it generates be used to fund the relayers operational costs, with extra yield that it might generate get added to the principal.
This could be a smart contract that pays out the interest, so the principal is fully reclaimable by governance vote if the need arises. (and disclaimer, I have written a un-audited smart contract to do this kind of thing, but am hoping a fully audited solution is available, if not it would run fee-free)
I am also proposing that a multisig be formed on Apollo Safe with a mix of interested and independent parties to oversee the disbursement of the monthly yield, or via something like a cw-4 group contract.
Members of this group would be awarded a token amount for their effort out of the monthly yield.
I believe that this will help terra in the short-medium term until a more sustainable solution arrives, and is not lucrative enough that we will get swamped by 100’s of people who want to run relaying services.
I’m looking forward to other people’s feedback on this