A Comprehensive Guide to Evmos: The EVM in the Cosmos Ecosystem
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A Comprehensive Guide to Evmos: The EVM in the Cosmos Ecosystem
How does Evmos integrate the Cosmos and Ethereum ecosystems?
Navigating Web3 tides with focused insights
Written by: Defi Marshmello
Compiled by: TechFlow
How Does Evmos Integrate the Cosmos and Ethereum Ecosystems?
The Cosmos-based EVM blockchain is known as Evmos (EVM-On-Cosmos) and is compatible with the Ethereum mainnet and all other EVM-compatible chains. At the same time, because it supports Cosmos's Inter-Blockchain Communication (IBC) protocol, Evmos is also interoperable with all other Cosmos chains.
Evmos was created by Tharsis. In April 2021, the Cosmos community decided to allocate 100,000 ATOM tokens from the Cosmos Hub community pool to Tharsis Labs to fund, develop, and deploy Evmos.
Tokenomics
The initial genesis allocation of Evmos (200 million tokens) is as follows:
- 40% allocated to a strategic reserve controlled by a multi-sig DAO owned by the foundation;
- 50% airdropped to users across the Cosmos and Ethereum ecosystems;
- 10% to the community pool;
The Evmos dApp Store consists of all registered contracts and developer-submitted applications, aiming to pay service fees to developers and network operators using an embedded shared fee revenue model.
Fees will be split 50/50 between contract deployers and validators, though this distribution may be adjusted via governance.
After genesis, Evmos begins as a highly inflationary system, initially releasing 1 billion tokens. Token issuance will only begin declining over the following four years.
In the long term, Evmos’s token issuance rate will continue to decrease, eventually reaching a deflationary state.
However, note that Evmos has an infinite token supply.
After year four, the Evmos DAO and users will have the option to vote on several possible supply models for the token.
The allocation of newly issued tokens is as follows:
- 32% for staking rewards
- 20% for usage rewards
- 20% for the Evmos team
- 10% for the community pool
- 10% for special purposes
- 8% for airdrops
Deferred Gas Rebates and the built-in shared fee revenue model are two interesting features of Evmos’s tokenomics:
- Deferred Gas Rebates: This feature provides gas subsidies to Evmos clients to incentivize smart contract deployment on the platform.
- Built-in Shared Fee Revenue: Evmos rewards active users and distributes gas fees to dApp network developers—a stark contrast to existing blockchains that only reward validators or miners.
Ecosystem
Several key projects, including DEXs such as Exswapdot, Diffusion, and KinesisLabs, will launch on Evmos.
Uniswap v2 on Evmos has been forked into Exswap and Diffusion Finance. The Evmos ecosystem will feature two DeFi hubs.
Kinesis Labs, the first stablecoin exchange built on Evmos, aims to become the largest stablecoin exchange on the platform.
The first money market on Evmos is Coslend, a fork of the Compound Finance lending protocol.
In the coming months, more protocols and DApps are expected to be deployed on Evmos.
Many well-known DApps from Ethereum and other EVM chains are anticipated to migrate their applications to Evmos and expand their user base within the Cosmos ecosystem.
These DApps can leverage Evmos’s integration with Cosmos’s Inter-Blockchain Communication (IBC) capabilities to access all IBC-enabled chains throughout the Cosmos ecosystem.
Evmos’s substantial funding initiatives are also encouraging development on its L1.
Competition
As an EVM chain, Evmos faces intense competition from other established EVM chains such as BSC, Avalanche, Polygon, and Fantom.
Additionally, there are other EVMs operating on top of L1 platforms, such as Aurora on Near and Moonbeam on Polkadot.
Therefore, the EVM market is highly saturated, and Evmos lags significantly behind these larger chains in terms of implementation and user adoption.
In other words, if their projects succeed, developers could benefit from both Evmos and the broader Cosmos user base, creating a positive feedback loop.
Overall, I remain very optimistic about Evmos’s prospects due to its role in connecting the Ethereum ecosystem with Cosmos.
Thanks to its strong use cases and incentive structure, Evmos could drive liquidity and user growth across the Cosmos ecosystem.
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