COSMOS HUB (ATOM)

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Field

Content

General information

S.1

CASP Name

BB TRADE ESTONIA OÜ

S.2

Relevant legal entity identifier

984500L05A5D0E66Q610

S.3

Blockchain network name

Cosmos Hub

S.4

Name of the crypto-asset

ATOM

S.5

Consensus Mechanism

Proof of Stake (PoS) - Tendermint Core Byzantine Fault Tolerant (BFT) consensus algorithm

S.6

Incentive Mechanisms and Applicable Fees

The Cosmos Hub is secured by a set of active validators who stake ATOM tokens. These validators are responsible for proposing and voting on blocks, ensuring that transactions are confirmed and the network state is updated. The Tendermint Core algorithm provides instant finality for transactions.

Incentives:

Validators: Earn rewards in ATOM for participating in the consensus process. These rewards come from newly minted ATOM (inflation) and a portion of transaction fees. Validators are incentivized to maintain high uptime and honest participation.

Delegators: ATOM token holders can delegate their tokens to validators, contributing to the validator's voting power and sharing in the staking rewards (minus a commission fee charged by the validator). This enables broader participation in network security.

Slashing: Validators (and their delegators) face penalties (slashing) for malicious behavior (e.g., double-signing blocks) or prolonged downtime, ensuring accountability and network integrity.

Fees: Transaction fees on the Cosmos Hub are paid in ATOM and are generally very low and predictable. These fees are collected by the validators, providing an additional incentive for their operation. The PoS model inherently minimizes energy consumption by avoiding competitive computational mining.

S.7

Beginning of the period to which the disclosure relates

2024-01-01

S.8

End of the period to which the disclosure relates

2024-12-31

Mandatory key indicator on energy consumption

S.9

Energy consumption

~500,000 kWh per calendar year

S.10

Energy consumption sources and methodologies

The energy consumption of the Cosmos Hub is predominantly from the electricity used by its validator nodes and supporting full nodes that maintain the network state. As a PoS network, it does not involve energy-intensive mining. Methodologies for estimation typically involve:

Hardware power draw: Analyzing the typical power consumption of standard server hardware used by validator nodes.

Node count and uptime: Scaling this hardware consumption by the number of active validator nodes and their continuous operational uptime.

Due to its efficient Tendermint consensus, the computational energy requirements are minimal compared to Proof of Work systems.

Supplementary key indicators on energy and GHG emissions

S.11

Renewable energy consumption

n/a

S.12

Energy intensity 

~0.0137 kWh per transaction

S.13

Scope 1 DLT GHG emissions – Controlled

0 t CO2eq per calendar year

S.14

Scope 2 DLT GHG emissions – Purchased

~237.5 t CO2eq per calendar year

S.15

GHG intensity 

~0.0065 kg CO2eq per transaction

S.16

Key energy sources and methodologies

The energy sources for Cosmos Hub's validator nodes reflect the diverse electricity grid mixes of their global distribution. These include a combination of conventional sources (e.g., natural gas, coal) and renewable sources (e.g., hydro, solar, wind, nuclear), depending on the geographic location of the validator operators. Methodologies for assessing this would involve:

Geographic identification: Attempting to identify the physical locations of active validator nodes.

Grid mix data correlation: Integrating this location information with publicly available datasets on national/regional electricity generation mixes and their associated carbon intensity factors (e.g., from IEA, EIA, regional energy authorities).

S.17

Key GHG sources and methodologies

The predominant source of Greenhouse Gas (GHG) emissions for the Cosmos Hub is Scope 2 (indirect emissions from purchased electricity). Methodologies for estimating these emissions involve:

Energy consumption * Emission Factor: Multiplying the estimated total electricity consumption of the Cosmos Hub network (S.8) by the carbon intensity (grams of CO2 equivalent per kWh) of the electricity mix used by its validator nodes.

Focus on operational emissions: Calculations primarily focus on the operational energy usage of the PoS validator nodes, which constitute the main energy-consuming component of the chain. Emissions from hardware manufacturing (Scope 3) are typically outside the scope of such operational reports.