This upgrade is meant as a patch that must be hard forked in, due to a bug in proposal 16 breaking on-chain governance of Osmosis. Details of the bug are at the bottom.
UPDATE: The version that will be used on-chain will not be this version, due to a bug in the cosmos-sdk version v0.42.7
This upgrade includes
- Fixing the immediate governance issue, by changing the min_deposit parameter to what was intended
- Fixing the bug in min_commission_rate, that allowed validators to create a validator with a lower rate than the minimum. It also bumps up all validators to the minimum.
- Update to Cosmos-SDK v0.42.7, which fixes state syncing.
Governance Bug
In proposal 16, the 'min_deposit' value on the proposal was set to 500osmo and not the intended 500000000uosmo. On chain, the denomination "osmo" doesn't exist, there is only "uosmo" (Similar to how on Bitcoin there are only sats).
Due to this parameter change, a sufficient governance deposit to enter on-chain voting must be in Osmo, which is a denomination that does not exist on chain. Thus no new governance proposals can enter a voting period and get decided on chain.