Interchain Security (ICS)

Interchain Security (ICS) is a key feature of the Onomy Protocol within the Cosmos ecosystem, as the second provider chain across the entire ecosystem after the Cosmos Hub, offering a shared security model that benefits both the Onomy Hub and emerging consumer appchains. Here’s how it works:

Validators from the Onomy Hub also serve new consumer appchains, which allows these chains to focus on developing their products and capturing market opportunities instead of assembling and maintaining their own validator sets.

Through the Interchain Security model, consumer appchains compensate the Onomy Hub’s validators by contributing to the network’s operational support. This arrangement facilitates the provisioning of security services, ensuring the robustness and success of the entire network. Specifically, consumer appchains set a redistribution factor on staking rewards to pay the Onomy Network parent chain (NOM stakers) for securing the chain in the form of rewards of the consumer chain's native token - such as ONEX tokens.

The integration of new consumer chains is meticulously managed through Onomy Hub Governance. This involves a thorough review process with community input, ensuring that only chains that meet our high standards for security and potential contribution to the ecosystem are approved. This governance process helps maintain a secure, efficient, and community-driven ecosystem, fostering growth and innovation across the board.