Creating A COSMOS Keiretsu

While participating at the Interchain Foundation and @Hack4atom event with my commercio.network team I talked with a lot people, doing different projects and ideas. Most of them shared with me the same problems:

1. Cosmos zone projects needs funding and validators
2. Cosmos validators needs more ROI for their infrastructure

I had an idea that might solve both problems at once:

Let’s create a Cosmos Keiretsu.

Keiretsu is a business network composed of companies who remain financially independent but work closely together to ensure each other’s success.

From wikipedia: “A keiretsu (Japanese: 系列, literally system grouping of enterprises) is a set of companies with interlocking business relationships and shareholdings. The member’s companies own small portions of the shares in each other’s companies, centered on a core bank; this system helps insulate each company from stock market fluctuations and takeover attempts, thus enabling long-term planning in projects. It is a key element of the manufacturing industry in Japan.”

A bunch of happy kids that play together should inspire grownups…

This Keiretsu concept could be extended to the COSMOS ecosystem to foster growth, increase stability and enable long-term planning and success.

My idea is that we could create a Keiretsu between Validators and Cosmos Projects Zones:

I propose starting from something very small, 100% informal and unstructured and if it works make it slightly more formal and structured.

Phase I
Cosmos Zones becoming Validators for other Cosmos zones

Each project in the Cosmos space should take time to reach other projects that looks good to them, Join the testnet and meet other people online and offline.

Advantages:
-Reaching 100/150 Validators faster
-Exchanging Zone tokens 1:1 with each other
-Learning about alternative governance models

Phase II
Cosmos.network Validators becoming validators for Cosmos Zones

Existing top cosmos.network validators could be the the new “Angel/VC” of the Cosmos Ecosystem by reaching out projects and “invest” in their project by acquiring Tokens at early stage of development.

Advantages:
-Diversification of Token portfolio
-Additional revenues with the same validator Infrastructure
-Helping the Ecosystem growth

Phase III
Sharing local Cosmos Zones Validators with other Cosmos Zones

Each new Cosmos Zone will brings some “local/sector” validators. Mainly because they are the end user of the application that the zone project is developing. They could be interested in becoming validators for other zone projects as well, so why not sharing validators . It’s like the speed dating event we did in Berlin.

Advantages:
-Additional Global Coverage and visibility
-Geographic and Jurisdictional heterogeneity
-Creating opportunities outside your own social network

Possible challenges and Solutions to this approach

I just pointed out all the advantages for forming a Cosmos Keiretsu , but of course there are many challenges to overcome:

1. Establishing minimum Entry criteria for Joining the Keiretsu
2. Establishing the Value of the presale Token for zone projects
3. Building the initial trust while keeping it informal
4. Limit Scams and Free-riders that game the system
5. Clarifying the different set of rules each Cosmos zone project might have
6. Establishing a transparent independent “market place” for projects
7. How to avoid a Cartel Formation
8. The challenge you thought, reading this article, that is not yet listed

I would like the @cosmos community, to help me point out challenges and working together at solutions: This is the first draft of the idea, please reach me on telegram @enricotal or in the stakingdefense.org forum if you would like to discuss Cosmos Keiretsu further.