Cosmos devoted funds to boost DeFi activity. It scored a token windfall in return

Neutron is seeking the reallocation of 25k ATOM tokens that had initially been given to P2P


Luckymane/Shutterstock modified by Blockworks


The Cosmos Hub will soon receive a significant token windfall on a proposal from last year.

Proposal 78 was first introduced in May last year, designed to introduce liquid staking and interchain DeFi into its ecosystem. 

The proposal sought a total of 150,000 ATOM tokens, an amount worth roughly $950,000. The ATOM tokens would then be invested in projects able to bring liquid staking and DeFi activity to the interchain through replicated security (RS). 

Replicated security is a shared security model used by a network of blockchains part of the Cosmos ecosystem. The Cosmos Hub can be considered the main point of contact for the various blockchains developed within the Cosmos ecosystem. 

Of the 150,000 ATOM tokens in the initial proposal, 50k worth of ATOM tokens were given to P2P, a proof-of-stake validator and remote procedure call (RPC) node provider, to build Neutron. Neutron is a layer-1 CosmWasm blockchain that enables smart contracts to be deployed across multiple blockchains.

So far, only 25,000 of the 50,000 ATOM has been received by the Neutron team and a proposal to reallocate the remaining 25,000 ATOM from P2P to Neutron is underway.

At the time of writing, almost 97% of voters are in favor of Neutron receiving the additional 25,000 ATOM, though the proposal itself has not yet reached quorum. Voters will have until the Aug. 24 to cast their votes.

Additionally, the proposal will provide the Cosmos Hub with one of its largest allocation returns to date. 

Now that Neutron has officially launched on RS, an estimated $12 million will be sent back to the Hub as part of an airdrop. The team called it “an expected initial return of 28x the original Prop 72 allocation.”

This amount is in addition to the initial agreement whereby 25% of all transaction fees and 25% of all MEV revenue will be given to the Hub.

Neutron plans to submit a proposal to ensure that the airdropped tokens can be used to contribute to Neutron governance.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg


The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.


Fifteen million daily failed transactions disappeared from Solana


FTX debtors will pay the IRS $200M, with an outstanding lower priority claim of $685M


I’ve come to the realization that more attention is needed to create and sculpt the digital spaces where we live


The NYSE went down yesterday after a glitch caused a string of erroneous trades. Does DeFi fix this?


Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral



Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM