Add Kava-issued USDT (`usdt.kava`) to the Regen Ledger currency allowlist

Governance
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1

Governance Proposal — Enable usdt.kava on Regen Ledger

Title
Add Kava-issued USDT (usdt.kava) to the Regen Ledger currency allowlist

Summary
This proposal adds Cosmos-native USDT, minted on Kava, to Regen’s currency_allow_list. Native USDT will let users buy and retire ecocredits with dollar liquidity already circulating in Cosmos, improving UX and paving the way for ReFi integrations and future BD with Tether.

:puzzle_piece: Context & Motivation

  • Kava is the sole Cosmos chain approved by Tether to mint native USDT.
  • Regen currently supports only axlUSDT (bridged/custodial).
  • Enabling usdt.kava brings trust-minimized stablecoin flow, broadens our user base, and supports ESG-aligned BD narratives (“USDT funding biodiversity”).

:hammer_and_wrench: Technical Details

  • IBC channel required – establish Regen ↔ Kava (relayers have template configs).

  • Initial denom – "usdt.kava" (final IBC hash updated post-channel, e.g. ibc/4F1…).

  • Marketplace param change

    {
  "denom": "usdt.kava",
  "display_denom": "USDT",
  "decimals": 6,
  "enabled": true
}

  • Frontend – add USDT option in purchase / retirement UI once channel live.

  • Fee-token – community can later vote to allow USDT for tx fees if desired.

:money_with_wings: Future Incentive Alignment (non-binding)

  • REGEN/USDT LP rewards on Regen or Osmosis.
  • Eco-credit retirements matched 1-for-1 in USDT for launch month.

:repeat_button: Relayer Coordination Needed

This proposal assumes an IBC channel between Regen and Kava will be established. Once passed, relayer support will be needed to spin up the channel and register the usdt.kava denom on Regen.

Interested relayers (e.g., Strangelove, Notional, others) are encouraged to coordinate with Regen contributors in Discord or via governance threads.

:ballot_box_with_ballot: Governance Impact

  • Yes – adds usdt.kava, unlocking Cosmos-native USDT flows and dollar-denominated climate finance.
  • No – Regen stays limited to bridged axlUSDT, missing lower-risk liquidity and BD upside.
2

I support this proposal!

1 Like
3

More stablecoins are good. I support this proposal.

1 Like
4

Just to clarify for anyone wondering:

:white_check_mark: This proposal only adds usdt.kava to the Regen Ledger currency allowlist.
:locked: It does not require IBC channel setup or relayer coordination yet.
:brick: It’s a governance parameter that can be set ahead of technical implementation.

That means:

  • Devs can later open the Kava ↔ Regen IBC channel

  • Relayers (e.g. Notional, Strangelove) can begin routing packets

  • UI maintainers can add support to the Regen Marketplace frontend

By passing this now, we create a clear path for native USDT to be used in Regen-based climate finance — with the infrastructure to follow when ready. :globe_showing_europe_africa::droplet:

5

Question for Regen devs and governance stewards:

Since both usdc.noble and usdt.kava follow the exact same param update process — could they be submitted as a single on-chain governance proposal that adds both to the currency_allow_list?

From a coordination and implementation standpoint, bundling them might reduce proposal fatigue and speed up support for native stablecoins.

Happy to support messaging and outreach either way — just flagging in case it makes sense to consolidate. :white_check_mark: