What is Evmos?The ultimate achievement of open source Blockchain, distributed information sharing, and digital assets have proven that decentralized internet protocol, if permitted, can profoundly improve socio-economic infrastructure.
From the beginning and adoption of Blockchain technology, there have been specialized Blockchain use cases like Bitcoin: primarily a digital currency, and smart contract network like Ethereum, which enables many decentralized applications (DApps) for the Ethereum Virtual Machine (EVM).
These Blockchains have experienced many ups and downs in their operations, such as energy inefficiency, network congestion, and ineffective governance models.
Evmos is a new frontier in the crypto space that seeks to integrate Ethereum assets and decentralized applications with the Cosmos ecosystem’s software development kit (SDK).
Evmos is a project that deals with proof-of-stake (PoS) networks that enable value transfers between Ethereum and Cosmos ecosystems. The PoS is developed using the Cosmos software development kit (SDK).
Developers can easily use Evmos to deploy Ethereum smart contracts on Cosmos networks tailored for certain apps, and also create cross-chain DApps more quickly and affordably by fusing the EVM and Cosmos ecosystem.
Also, Evmos interoperability of Cosmos and Ethereum blockchains enables developers to use Ethereum’s programming language, “Solidity” to build several decentralized apps (DApps) and get access to shared liquidity and value transfer thanks to the Cosmos’ Inter-Blockchain Communication (IBC) protocol.
What is SDK?This is a tool that is used in the framework development of the Proof of Stake (PoS) Network, and as mentioned earlier EVMOS is a Proof of Stake Layer 1 Platform; as such, SDK is needed and used in building Evmos.
Also, SDK has a flexible framework that allows developers to take advantage of pre-built and tailor-made models and test-run them before launch.
How Does Evmos Work?
EVMOS distinguishes itself from the application layers of other networks by leveraging Byzantine Fault Tolerance (BFT) from Tendermint Core. The term Byzantine Fault Tolerance (BFT) originates from a conjecture known as the Byzantine Generals’ Problem (BGP). This theory explores how several Byzantine generals, each controlling an army and stationed at different outposts, can communicate and reach consensus on the battlefield.
Each network node is akin to a Byzantine general. In a decentralized blockchain like Evmos, which comprises multiple nodes, the system must ensure continuous operation even if some nodes fail.
Additionally, the company behind Evmos, Tharsis, has developed an EVM module to be attached to Tendermint. They are not only the first team to do this but also allow others to access this module, attach it to Tendermint, and create their own EVM application-specific blockchains. This helps facilitate EVM-compatible tools within the Cosmos ecosystem, providing a better experience when utilizing Ethereum development tools. Moreover, the blockchain network can function properly even if some BFT nodes fail.
In traditional blockchain consensus mechanisms, the proof-of-work (PoW) process requires waiting for multiple confirmations before transactions become irreversible. All Bitcoin wallets now rely on multiple servers for transaction verification.
In contrast, Evmos uses a proof-of-stake (PoS) block validation method based on the Tendermint protocol engine, providing core security and validation functions for the Evmos blockchain. Any full node can apply to become a validator, and the top 150 validators with the most staked EVMOS tokens will be responsible for processing on-chain transactions and earning transaction fees.
Evmos has a slashing penalty mechanism in place. If a validator performs poorly (e.g., double-signing malicious attacks, going offline and failing to validate blocks, or security issues due to hacking), a portion or even all of the staked EVMOS tokens will be slashed and confiscated, encouraging validators to operate their nodes responsibly.
Settlement ChainEvmos is also collaborating with the Celestia modular protocol to build an optimized settlement layer for EVM rollups, known as Cevmos (Celestia/Evmos/CosmOS). This open modular stack uses Optimistic Tendermint as the settlement execution layer for Celestia rollups.
The settlement chain uses Celestia as the information accessibility layer and Evmos applications (smart contracts, interoperability, composability, etc.) to offer a complete EVM-equivalent stack for interoperable smart contracts on the Cosmos and EVM worlds.
Contrary to Ethereum Mainnet, the network is augmented exclusively for roll-ups, as such, roll-ups don’t compete for transaction fees with non-rollup activities, reducing the fees further while increasing throughput.
Currently on Evmos, the average transaction fee is less than $0.01, and transactions can be verified within three seconds, with a maximum transaction per second (TPS) capacity of up to 10,000. As a result, Evmos not only connects the ecosystems of the Ethereum and Cosmos blockchain networks but also provides near-instant and secure mobile payment verification, making trust-minimized and practical mobile payments feasible.
What is the EVMOS Token?
The blockchain’s utility token, EVMOS, aids the activities of the Evmos blockchain， facilitates flexible interaction between users, and helps developers build on the network.
Thus, by rewarding network validators and developers, the EVMOS token is essential in maintaining the security of the Evmos blockchain, transaction fee payment, and staking.
Also, it is the second asset on an EVM that supports network participation through governance voting in addition to supplying energy for network transactions and validation procedures.
Nevertheless, you are in charge of navigating the Evmos decentralized autonomous organization (DAO) and participating in decision making thus, being able to determine the ecosystem’s future as a token holder.
EVMOS TokenomicsEVMOS is intended to have a high rate of inflation, with the release of about 300 million tokens in the first year. The release of the tokens follows an exponential decay schedule, which reduces inflation annually. In a procedure known as “The Half-Life,” the initiative intends to issue one billion tokens in total over four years.
Source: Blog Introduction in Evmos Official Website
The Half-life Formula Exponential DecayWhile this makes the project’s long-term theoretically deflationary, the developers see EVMOS as an asset with an uncapped supply. However, the team advises the community to vote for another token supply system after the first four years. For instance, they can recommend a linear or constant system if the rewards become too little.
The DApp StoreIn Evmos, Gas fees are not burned funds that merely boost the blockchain ownership shares of validators. The platform now divides fees as incentives between developers and validators for their services through an inbuilt, mutual fee revenue mechanism. This revenue mechanism/fee distribution is known as the DApp store.
You can think of it as an app store, where some income from the app sales is allocated to the store operator and some to the developer. However, in the DApp store, the setup is an eternal, active service where the operator leases much of the infrastructure necessary to operate a DApp.
The store incentivizes developers based on the value and impact of their DApps, instead of their capacity to accelerate a new governance token. In this regard, developers building on Evmos receive a genuine stake in the development and governance of the platform. Initially, the fee is split on a 50/50 basis between deployers and validators but can be changed through a governance proposal.
Features of the Evmos BlockchainEvery DeFi project would dearly love to get access to certain Ethereum-based applications. The advantages of Evmos’ Proof of Stake (PoS) system are compatibility, security, fast transaction, affordable gas fees, and an increasing user base.
CompatibilityThe Ethereum blockchain can be used to create DeFi apps because it is well-established, secured, and has a large user base. However, it has lagging results in high running costs and sluggish transaction times.
EVM-compatible layer one chains, such as Evmos, enable developers to deploy Ethereum apps to a large user base, enhancing the apps’ usability.
We previously noted that the Cosmos SDK is used to create Evmos and it is a tool for creating PoS or Proof-of-Authority (PoA) networks. SDK also enables developers to use pre-built and custom models and test them before release.
Instead of a framework focused on virtual machines, it employs a flexible framework. You will be able to appreciate why the Cosmos SDK is the best choice for building interoperable, and application-specific networks once you have a firm grasp of the distinctions between those two frameworks.
Smart ContractSmart contracts are used in virtual machine networks like Ethereum to create apps. Although the framework is perfect for some applications, such as those that require precise command execution, it is almost hard to create multi-layered programs with it. It is interesting to note that Ethereum has the largest development community among the smart contract networks.
Fast TransactionsEvmos users also gain from super-fast transaction times, great throughput, and lower costs. Users enjoy fast transactions without having to wait for hours for a transaction to be completed. This is one of the reasons EVMOS is satisfactory for users, as a reduction in network congestion leads to reduced cost, causing developers to scale DApps effectively.
Evmos EcosystemSource: EVMOS Ecosystem
Numerous web3 applications and projects have been developed on the EVMOS ecosystem. Let’s look at some of them.
Decentralized Finance (DeFi)4T2: Is a decentralized yield-boosting mechanism, built on the Evmos blockchain, that aims to maximize liquidity provision throughout the entire Cosmos ecosystem.
ASTEROIDS MONEY: Is an Algo stable coin backed by Evmos that bridges the gap between Ethereum, Evmos, Cosmos, and its ecosystem.
AUTOFARM: Is a yield optimizer, a DEx aggregator, and an intelligent portfolio manager. These are the three main product offerings of this chain-neutral, yield-aggregating DeFi protocol. It’s a one-stop DeFi platform with multi-chain DEx and yield aggregation.
On AutoFarm, Evmos has been integrated because of its enormous space, and AutoFarm is one step closer to becoming a one-stop DeFi store.
Other DeFi applications include AAVE, Kinesis Labs, Diffusion Finance, FRAX, AND NOVADAO.
Infrastructure and ToolsANKR: A utility token with a variety of applications. It can be used as a payment method to access services on the Ankr network as well as for simple voting on grant proposals. Also, Ankr has a good reputation as the fastest, most dependable Web 3 infrastructure.
BAND PROTOCOL: A cross-chain data oracle platform that links actual data to smart contracts and APIs; safe and scalable decentralized cross-chain oracle. Also, it’s important to know that external data and APIs are connected to smart contracts.
BLOCKSCAN: By simply connecting their wallets, BlockScan enables Ethereum users to interact with one another. Besides, it is utilized to create, integrate, and launch specialized Blockchain projects with BlockScan as well as automate and secure important business transactions.
DashboardBLOCK SPOT: An educational and informational platform that offers fascinating subjects for investors and enthusiasts. Being the largest Blockchain data platform is its goal.
Wallets And CustodiansCryptocurrency keys are kept safe and accessible in wallets, which are secure devices, though Evmos adds extra security to wallets. Here are a few examples: FoxWallet, Evmos.me, Disperze wallet, Kepler, FalconWallet, and CypherD wallet.
Non-Fungible Tokens (NFTs)NFTs are non-fungible tokens that are typically made using the same kind of coding as cryptocurrencies. Examples of NFTs connected to Evmos include Cosmic Horizon, Evmos Explorers, and Evmos Punks.
Decentralized Autonomous Organization (DAO)This is a decentralized system in which decisions are made by a community centered on a particular set of regulations enacted on a Blockchain, rather than by a central authority. For instance, Layer2 Pad, NovaDao, and OwlDao are examples of DAOs running on the Evmos ecosystem.
EVMOS: Bridging the Cosmos and EVM EcosystemEvmos promotes the Cross-chain communication between Ethereum and Cosmos ecosystems. It enables users to avoid Ethereum’s high transaction fees and network congestion by tying the two chains together. Also, it gives Cosmos developers relatively unrestricted access to the industry-leading smart contract network (Ethereum has the largest development community among the smart contract networks).
To increase lending inside the Evmos ecosystem and the larger Cosmos community, Evmos installed Aave V3 on its network.
Evmos serves as a portal for users of Ethereum and other EVM chains to access the Cosmos universe. This is made possible via developer-focused incentives, cross-chain composability, and compatibility with other Cosmos blockchains.
The Aave-Evmos Decentralized Exchanges (DEx) accept EVMOS, AAVE, USDT, USDC, DAI, wBTC, FRAX, and ATOM among other tokens.
A settlement layer for EVM roll-ups was developed by Celestia in collaboration with Evmos. With the lowest possible transaction fees, EVM roll-ups let users conduct off-chain transactions while securely sharing the transaction information with an on-chain consensus and information accessibility layer.
Roll-ups provide high throughput to developers and users by processing transactions outside Layer One (L1) chains, which eases congestion.
Overview of the Evmos Ecosystem
Developed using the Cosmos SDK, it allows Ethereum smart contracts to run easily on specific application chains.It supports the IBC protocol and can connect DApps across different chains.It provides comprehensive Ethereum Virtual Machine support for Solidity developers.
Evmos’s native token, EVMOS, ensures network security and promotes ecosystem growth. With the launch of Evmos 2.0, the Evmos ecosystem is believed to embrace new development opportunities.Evmos 2.0Evmos, a chain built on the Cosmos SDK and compatible with the Ethereum Virtual Machine (EVM), has launched the Evmos 2.0 upgrade. The main goals are to improve performance and user experience and to add new functionalities to the Evmos chain.
Major Improvements in Evmos 2.0
Supports bidirectional conversion between IBC assets and ERC-20 tokensOptimizes transaction processing and block packagingEnhances overall network performance
New Features in Evmos 2.0
Enables the feesplit module, allowing validators and contract deployers to share transaction feesLaunches the DApp Store, providing users with a convenient DApp discovery and usage experienceDevelops mechanisms to support using Cosmos native assets as ERC-20 tokens on Evmos
Evmos TokenomicsEvmos is a blockchain based on the Cosmos SDK, aiming to provide developers and users with a secure, reliable, and efficient development environment. The token economics of Evmos is the core of its ecosystem. Below are its main features and mechanisms:
Main Features and Mechanisms of Evmos Token EconomicsEVMOS Token:
EVMOS is the native token of Evmos, used to pay transaction fees and reward users for providing liquidity.EVMOS can be obtained by trading and providing liquidity on Evmos.
Liquidity Mining:
Evmos’s liquidity mining mechanism allows users to earn EVMOS token rewards by providing liquidity.The liquidity mining mechanism can increase user earnings and liquidity.
Token Airdrops:
The token airdrop plan of Evmos allows early community supporters, testnet participants, early LPs of EvmoSwap, Evmos community members, and users of the Cosmos ecosystem to receive EVMOS token airdrops.The airdrop plan helps attract more users and liquidity, further consolidating the development of the Evmos ecosystem.
LP Pools:
LP Pools are liquidity market-making pools on Evmos, allowing users to earn EVMOS token rewards by providing liquidity.Several LP pools are already open on Evmos, including USDC/EVMOS, USDC/USDT, and USDT/EVMOS.
Yield Farming:
Evmos’s yield farming mechanism allows users to earn EVMOS token rewards by providing liquidity.The yield farming mechanism can increase user earnings and liquidity.
Overall, the token economics of Evmos is the core of its ecosystem. Through mechanisms like liquidity market-making, yield farming, and airdrop plans, it helps attract more users and liquidity, further consolidating the development of the Evmos ecosystem.
Is EVMOS a Good Investment?EVMOS is compatible with Ethereum Virtual Machine and built using the Cosmos SDK; its goal is to integrate Ethereum assets and DApps with the Cosmos interoperable blockchain.
Using the PoS algorithm, Evmos guarantees fast transactions, next to zero fees, and most importantly provides accessibility to Ethereum’s rich assets. It is basically extending the capabilities of IBC and setting the groundwork for its integration with current EVM chains. Evmos has become one of the biggest networks on Cosmos by market capitalization, and considering that more developments are coming, we could soon see a gigantic growth of its ecosystem.
How to Own EVMOS?To own EVMOS, you can use a centralized cryptocurrency exchange. Start by creating an account on Gate.io. Once your account is verified and funded, you can buy EVMOS tokens. Simply put, you can use Gate Convert, spot trading, or even margin trading to obtain EVMOS.
News on Evmos (EVMOS)On November 2nd, 2022, Evmos announced that they had concluded their first token sale of $27M to support Evmos development. Polychain Capital led the round with participation from some of the major players in the Web3 space and other angel investors. Furthermore, following the announcement, the platform has partnered with Anchorage Digital to provide custody and staking services to increase institutional adoption of the inter-blockchain communication protocol and make it more accessible to investors. Evmos is dedicated to providing dApp developers with a range of resources. To compensate developers sustainably, Evmos directs half of each transaction fee to the developers whose dApp is being used, rather than to all of the transaction fees going to validators or being partially burned as they are on Ethereum.
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