Security and Risk Management

CosmBank’s staking system incorporates on-chain risk controls and governance protections to ensure sustainable and secure operations.

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Time-Locked Governance

• All critical parameter changes are subject to a 48-hour timelock.

• This delay allows the community to review, audit, and respond before execution.

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Multi-Sig Treasury Control

• The reward distribution pool is managed via a 5-of-9 multi-sig wallet.

• Any transfer or adjustment requires the approval of at least 5 authorized signers.

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No Liquidation Risk

• veCSM only represents governance voting rights.

• It is not associated with any collateralized debt positions, eliminating the risk of forced liquidation during market volatility.

A layered protection system — combining timelocked governance, multi-signature control, and debt-free staking — ensures the safety and resilience of the entire staking mechanism.