Add IBC Rate Limit for channel-3

Initia Governance L1 Chain Upgrade
1

1. TL;DR

This proposal adds an IBC rate limit on channel-3 (Initia ↔ Noble) for USDC, capping both inflows and outflows at 20% of the total supply per hour.

2. Proposal Details

IBC rate limiting is a security mechanism that restricts the amount of tokens that can flow in or out through a given IBC channel within a defined time window. This acts as a circuit breaker, limiting the impact of potential exploits or abnormal fund movements.

Rate Limit Parameters

Parameter Value
Channel channel-3
Denom ibc/6490A7EAB61059BFC1CDDEB05917DD70BDF3A611654162A1A47DB930D40D8AF4
Max Send (outflow) 20% per hour
Max Recv (inflow) 20% per hour
Duration 1 hour

Rationale

By enforcing a 20% hourly rate limit on both send and receive directions for channel-3, this proposal provides the following protections:

  • Exploit mitigation: In the event of a smart contract exploit or oracle manipulation, the rate limit prevents mass drainage of funds within a short period.

  • Early warning: A triggered rate limit signals anomalous activity, giving the team and community time to respond before further damage occurs.

  • Symmetrical protection: Applying the same threshold to both inflows and outflows ensures balanced protection against both deposit and withdrawal attacks.

Technical Implementation

This proposal executes a MsgAddRateLimit via the ratelimit.v1 module (ref: cosmos/ibc-apps rate-limiting module).

Note: Uses channel_id field as defined in the v8 proto (tx.proto), which is the version integrated in Initia. The newer v10 renamed this field to channel_or_client_id.

{
  "messages": [
    {
      "@type": "/ratelimit.v1.MsgAddRateLimit",
      "authority": "init10d07y265gmmuvt4z0w9aw880jnsr700j55nka3",
      "denom": "ibc/6490A7EAB61059BFC1CDDEB05917DD70BDF3A611654162A1A47DB930D40D8AF4",
      "channel_id": "channel-3",
      "max_percent_send": "20",
      "max_percent_recv": "20",
      "duration_hours": 1
    }
  ]
}

3. Timelines

  1. April 27, 2026 - Forum Proposal posted

  2. April 28, 2026 - Onchain Vote begins (7-day voting period)

  3. May 5, 2026 - Onchain Vote ends — proposal is executed or rejected

4. Governance Votes

  • YES — You support adding a 20%/hour IBC rate limit on channel-3 to protect against abnormal fund flows.

  • NO — You do not support adding this rate limit on channel-3.

  • NO WITH VETO — You believe this proposal is harmful, spam, or violates governance principles.

  • ABSTAIN — You choose not to vote for or against but wish your vote to count toward quorum.