Atom Accelerator DAO (AADAO) Grant Announcement Card - in Blank
Team: Lexa Michaelides
Amount Asked: $300,000
Status: Rejected

Testnet Incentives Program

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300k USD (the going rate for Game of ____ testnets lately) is to fund an incentivized testnet (e.g., Game of Chains, Game of Zones, Game of Stakes) to prepare the Hub to transition from the current version of Interchain Security (replicated security) to the next (partial set security – PSS). This PSS testnet would educate and give hands-on experience to validators on the differences between replicated security and partial set security. Where past incentivized testnets on the Hub have focused only on validators, the PSS testnet will also involve existing and incoming consumer chains to prepare the entire AEZ for the next version of ICS. This testnet is expected to last 2 weeks and represents a huge opportunity for marketing, hype, and content creation within the AEZ leading up to a mainnet launch of Partial Set Security.

75k USD of this grant is to extend the previously-funded pilot period of the Testnet Incentives Program with a few changes to accommodate the shift to PSS and enable more flexibility for validator participation.

The day-to-day Testnet Incentives Program pays funds directly to mainnet validators performing at a high level on the Hub’s Interchain Security testnet, which incentivizes them to:1) Reliably participate on the Cosmos Hub Replicated Security testnet using their mainnet setups, to properly replicate the mainnet environment.2) Take on the responsibility of validating the testnet with larger stake distribution, which further decentralizes the testnet and gives validators better opportunities to participate more in testing. 3) Provide feedback to consumer chain teams and Hub development teams based on their expertise and experience with testing features on testnet.4) Help other validators join the testnet and operate at a level that would let them join the testnet working group.

The pilot program has been hugely successful (reports were posted at the end of each month: https://forum.cosmos.network/t/introducing-the-testnet-incentive-program/12146/), having incentivized 40-50 validators participating each month with 15-20 validators qualifying for payment each month.

Running a testnet for the Hub continues to be especially costly for validators because good testing requires matching the production environment, so validators who are invested in good testing must duplicate all of their Hub mainnet infrastructure and practices.

Validators who validate on all mainnet consumer chains and test consumer chains before and after launch need to be compensated for their work in supporting interchain security. There is currently no compensation for testnet work despite it requiring validators to duplicate all of their mainnet infrastructure.

Team: Lexa Michaelides
Current Status: Rejected
Funding Program: Regular Grants
Funding Category: Interchain Security

Amount Requested: Amount in their initial application, or for RFPs, their first quote or that of the nearest competitor $300,000

Date Applied: Apr 12, 2024
Date Rejected: Generally includes time spent doing interviews, rescoping or amending the application, and due diligence May 15, 2024 (4 weeks)

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