Evmos Network Overview

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Evmos is a vital piece in the Cosmos ecosystem as it plans to bring a Cosmos SDK built, PoS blockchain that is compatible with Ethereum Virtual Machine (EVM) smart contracts.

Current network state

The Cosmos ecosystem, referred to as the internet of blockchains, is a decentralised network of scalable and interoperable blockchains each with an independent governance structure. Interoperability is achieved through inter blockchain communications protocol (IBC) and is the key to simplify the access and interaction of a wide range of blockchain-enabled products and services. The ecosystem has and is still growing at a remarkable rate - attracting an impressive amount of attention in the crypto space. However, it still has some distance to cover in order to catch up with Ethereum in terms of the number and variety of applications it supports.

Ethereum is massive. It is the 2nd blockchain in terms of market cap and has arguably the largest user base and the most applications of all networks, but such popularity has also led to congestion. The resulting high transaction fees became an issue that could stall the growth of the ecosystem leading to the rise of layer 2 solutions to solve these inherent scalability issues. Ethereum also certainly loses the comparison with the Cosmos ecosystem in terms of interoperability. Nevertheless, the utility of EVM smart contracts and a vast and established community of Solidity developers bring great value to Ethereum.

Evmos brings together the best of both worlds, enabling developers to utilise the functionality of EVM while enjoying the features of the Cosmos architecture. Evmos serves as the first IBC-compatible EVM-based chain, bringing composability, interoperability, and fast finality to Ethereum. Users will now have all the desired utility and features of Ethereum while benefiting from the fast finality and high-throughput of Tendermint PoS implementation. What's more, Cosmos and Ethereum users will be able to transfer this value amongst and between both ecosystems using IBC and emerging bridge projects.

The ability to use Ethereum Dapps on alternative blockchains has become a multi-billion dollar feature of web3, positioning Evmos as a potential leader in Cosmos' contribution to the web3 ecosystem.  

Token allocation

Evmos will have an initial supply of 200 million tokens at launch. The distribution will be amongst Rektrdop participants (50%), strategic reserve (40%) and the community pool (10%). This is a unique feature of Evmos’ token distribution model. This airdrop does not benefit large token holders of other blockchains, nor will there be an early pre-sale which often results in issues for the decentralisation of token holdings. Rektdrop will result in an even distribution of tokens amongst an unusually wide group of community members. That means that the blockchain will be purely community-driven since the to-be-distributed EVMOS is the governance token for its namesake chain.

Evmos will start off by being highly inflationary, with 300 million tokens being issued in the first year but dropping every year with the goal of 1 billion tokens being issued after 4 years. It is assumed that after this time, a new inflationary model will be proposed through governance.

Issued tokens will be distributed in the following way:

The key novelty here is the blockchain’s attitude towards developers. Usually the validators are the sole benefactors of the rewards system. This is not the case with Evmos - this blockchain focuses on building a developer’s community around its main feature (EVM smart contracts compatibility) and claims that developers are equally important for the project, while still acknowledging the role of network operators. This concept is implemented in the form of dApps Store which creates a reward mechanism for developers based on the value and impact of their application.

Token utility

Other than paying for transaction fees on the Evmos network, each EVMOS token will give rights to participate in staking and governance.

Staking is the mechanism used to secure the network. It is the process of bonding coins/tokens (stake) in order to earn rights to participate in the "validation" of new blocks, and in doing so are compensated with rewards. Token holders can “delegate” their EVMOS tokens rights to Validators. Delegators are incentivised to delegate to a Validator that acts according to the best interests of the network as a whole.

Evmos gives token holders the rights to submit and vote on proposals to better the network. Evmos stakers who do not vote will inherit the vote of their validator.

Staking Evmos

Validators play a crucial role, with their core responsibilities being validating transaction blocks and ensuring the security of the Evmos network. Validators may also decide to operate oracles, secure bridges, governance and much more.

Token holders can “delegate” their EVMOS tokens to the validators they wish. Validators will validate blocks of transactions on their behalf, earn rewards proportionally to the represented stake, and the network will redistribute it to their delegators after deducting a fee for the service they provide. Validators will set fees for their services, with a minimum of 5% of staking rewards earned.

The top 150 validators, based on the amount of EVMOS delegated to them, will be selected to participate in the validation of transaction blocks.

40% of newly-issued tokens as well as a portion of transaction fees will be allocated to staking rewards and will be redistributed to validators and delegators. Validators can also receive up to a 5% bonus by coordinating between each other to reduce their chances of empty blocks proposals.

Slashing risk

Evmos have implemented slashing to incentivise validators to conduct themselves and for delegators to select trustworthy validators. Validators who act in the following ways will see both their self-stake and their delegators’ stake slashed:

About P2P

P2P Validator is a world-leading non-custodial staking provider with the best industry practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only high class staking opportunities securing more than 2.4 billion of USD value.

At the time of the latest update, P2P Validator is trusted by over 10,000 delegators across 25+ networks. We are a major player in all networks we support because of our experience, commitments and our reputation. We pay special attention to the process of governance. P2P has the intention to contribute and provide long term support to the Evmos network.

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