Consumer chain mooning protection

If the Consumer chain moons (its token price increases significantly), the amount of Provider funds can be insufficient to cover slashing amounts.

Some kind of protection can be built around this: Suspending cross staking, i.e. unbonding cross-staked funds, in the case of the Provider chain mooning, so that the possibility of misbehaviour disappears. This looks like an effective solution, but will be unpopular / have undesired effects if / when triggered. Cross-staking could be resumed / re-bonded automatically as soon as the cross-delegators add the required funds under the new price, and / or the Consumer's token price goes down. This would be complicated to implement, but will turn the solution more attractive.

Alternatively, some kind of treasury can be built on the virtual staking contract (which is on the Consumer side), with some of the block rewards. So that if the Consumer chain moons, these funds will moon as well; as they are in the Consumer's token, not the Provider's one. This looks like a good idea. Adjusting the percentage of rewards to keep can turn this into an acceptable option. At the expense of the time required to build the "mooning reserve" funds.

Comments? @alpe, @jtremback, @JakeHartnell, @mpoke, @ValarDragon.

Originally posted by @maurolacy in https://github.com/osmosis-labs/mesh-security/issues/11#issuecomment-1685734104

osmosis-labs / mesh-security

Consumer chain mooning protection #172