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title: Sentinel Hub Software Upgrade Proposal – Version 12

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# Sentinel Hub Software Upgrade Proposal – Version 12

## Title
**Sentinel Hub Upgrade to v12 - Protocol Modernization and Feature Expansion**

## Author
Sentinel Core Development Team

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## Abstract
This proposal aims to upgrade the Sentinel Hub software from **version 11** to **version 12**, introducing significant protocol, module, and dependency upgrades. The upgrade enhances scalability, usability, and interoperability, while streamlining economic and operational mechanisms through the introduction of new modules and pricing models.

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## Motivation
The Sentinel Hub v11 release has served as a stable foundation for decentralized VPN operations and related services. However, evolving new economic requirements necessitate a major upgrade. The proposed **v12 upgrade** introduces key protocol upgrades, new modules, and refined mechanisms that will improve performance, developer experience, and economic flexibility for providers and users.

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## Key Changes and Enhancements

### 1. Core Protocol and Dependency Upgrades
- **Cosmos SDK:** Upgraded to **v0.47**.
- **CometBFT:** Upgraded to **v0.37**.
- **Cosmos IBC:** Upgraded to **v7**.
- **CosmWasm:** Upgraded to **v0.46**.

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### 2. Economic and Subscription Model Overhaul

#### 2.1 Introduction of Lease Module
- Decouples **time-based node purchases** from the Subscription module.
- The **Lease module** manages provider-specific node leasing, allowing flexible, time-bound node access.
- The **Subscription module** now focuses purely on managing **subscription plans and renewals**, simplifying responsibilities and improving maintainability.

#### 2.2 Node Session Model Improvements
- **Node-based sessions** no longer require an active subscription.
- Users can create sessions directly using a **per-session locking mechanism**, enabling pay-per-use models and microtransactions.

#### 2.3 Multiple Concurrent Sessions
- Allows multiple **active sessions per (account, node)** pair simultaneously, supporting parallel connections and improved scalability for multi-client use cases.

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### 3. Pricing and Oracle Improvements

#### 3.1 USD-Based Node Pricing
- Node pricing now supports **USD denomination**, improving economic clarity and cross-chain integration.
- Enables real-world pricing consistency and aligns with oracle-based data feeds.

#### 3.2 New Oracle Module
- Introduces a **dedicated Oracle module** for automated price updates.
- Prices for oracle assets are fetched from **Osmosis DEX pools** via the **IBC Async ICQ module**, ensuring reliable and decentralized price data.
- Provides dynamic updates to node and subscription plan pricing based on real-time market data.

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### 4. Automation Enhancements
- **Automated Lease Renewal:** Leases can auto-renew upon expiration if the account has sufficient balance and met renewal requirments.
- **Automated Subscription Renewal:** Simplifies recurring user subscriptions with automatic renewals to maintain continuous service.

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### 5. New Provider and Subscription Features

#### 5.1 Private Subscription Plans
- Providers can now define **private subscription plans**, assignable directly to specific user addresses.
- Enables customized offerings, enterprise partnerships, and exclusive plans.

#### 5.2 Improved Provider Flexibility
- Providers gain greater control over node pricing, lease duration, and private plan management through expanded parameters in the Lease and Subscription modules.

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### 6. Governance and Foundation Account Migration
- **Sentinel Foundation account** will be migrated to a **temporary account** during the upgrade.
- Post-upgrade, it will be **split into multiple managed accounts** for better treasury transparency and operational distribution.
- The **genesis vesting schedule** will be applied, preserving all prior tokenomics and allocation guarantees.

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### 7. Performance and Consensus Enhancements
- **Reduced block time** from **5 seconds to 3 seconds**, increasing network throughput and responsiveness.
- Optimized transaction handling and block propagation to maintain stability at higher block frequencies.

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## Upgrade Plan

### Upgrade Name
`v12_0_0`

### Upgrade Height
`23997755`

### Downtime Expectation
Estimated **15–30 minutes** for upgrade processing and verification.

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## Expected Benefits
- Enhanced interoperability with the Cosmos ecosystem and IBC-based projects.
- More flexible and transparent economic models for providers and users.
- Improved automation, reducing management overhead.
- Sustainable token and governance management through foundation account restructuring.
- Increased network throughput and reduced latency.

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## Security and Compatibility
- All migrations will follow audited and validated procedures.
- Backward compatibility for core account and balance data ensured.

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## Conclusion
The **Sentinel Hub v12 upgrade** represents a major leap toward a more scalable, flexible, and economically sustainable decentralized VPN ecosystem. By modernizing its underlying protocol stack and introducing automation, leasing, and oracle-driven pricing, Sentinel positions itself as a robust infrastructure layer for decentralized bandwidth services and beyond.
