Prop 222: Increase Upgrade Channel Timeout

Summary

The Nolus model uses Inter-Blockchain Communication (IBC) and Interchain Accounts (ICA) to enable smooth asset transfers and swaps across decentralized exchanges like the Osmosis DEX on Osmosis and Astroport on Neutron. Each position is linked to an Interchain Account having a pair of IBC channels which are ordered by default. Ordered channels close upon timeout, requiring a recovery process to reopen and resume cross-chain operations. However, a recent IBC update allows unordered channels for ICA, similar to regular transfer channels. Unordered channels stay open even after a timeout, eliminating the recovery process and improving system liveness during high activity.

Channel Timeout Proposal

This proposal seeks to increase the channel upgrade timeout to 24 hours. Currently set to 0 seconds, any failure in the upgrade process leads to immediate termination, requiring frequent restarts. Raising the timeout to one day allows more time for upgrades to complete, reducing disruptions. If an upgrade fails within this timeframe, the process will restart automatically. This is the first step toward the actual channel upgrade. There will be a follow-up smart contract migration as well as a base layer protocol software upgrade proposals. By voting "YES" you agree to increase the channel upgrade timeout duration from 0 seconds to 1 day.