Neutron to acquire 25% of CosmWasm developer Confio

Neutron core contributor Dutheil notes this is “a period of consolidation” in the Cosmos ecosystem

article-image

Confio and Golubovy/Shutterstock modified by Blockworks

share

The foundation supporting Cosmos-based cross-chain smart contract platform Neutron will acquire 25% of Confio, the software development company behind CosmWasm, the default virtual machine in the Cosmos ecosystem.

This acquisition is intended to drive technological improvements to the CosmWasm virtual machine and improve its performance, security and interoperability. 

Confio, a German GmbH corporation, will sell 25% equity of its shares in this strategic investment. 

According to Avril Dutheil, a core contributor of Neutron, the investment is being made by the Neutron Foundation in cash as part of its mandate to ensure the long-term growth and development of the network. It did not require a vote from NTRN token holders.

Mergers and acquisitions in the Cosmos

The announcement of Neutron’s acquisition of Confio comes just a day after other Cosmos chains, Osmosis and Umee, revealed that they would be merging, and only weeks after staking network Stride had shared plans that it wanted to become part of the Cosmos Hub. 

Although Stride’s plans did not ultimately come to fruition, it is evident that there has been a growing uptick of mergers and acquisitions in the Cosmos ecosystem, which Dutheil believes is “a period of consolidation.”

Dutheil notes that the Cosmos ecosystem has grown “far and wide, with perhaps not enough thought given to the cost of running a full app chain at scale, long term.”

He draws on examples of tokenomic inflation, where app chains pay for security provided by validators through token emissions, inflating the supply, and poor user experiences such as asynchrony and bridging, as examples of repercussions of the current model.

The Cosmos Hub community recently passed a proposal to limit ATOM inflation by adjusting the maximum inflation rate from 14% to 10%, which may encourage chains linked to the Cosmos Hub to take a fresh look at their tokenomics as well. 

“Projects are looking to consolidate with partners that share their vision to pool resources and focus and support deep integrations to take their projects to the next stages of growth and adoption,” Dutheil said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Unlocked by Template (7).png

Research

Union’s improvements upon Tendermint consensus through CometBLS, coupled with ZK proving through Galois, allow for a broadly scalable, cost efficient, and low latency IBC implementation that is feasibly scalable across every existing blockchain, virtual machine and runtime. The implementation offers modular crosschain interoperability without the need for trusted intermediaries.  

article-image

Ubisoft could let Champions Tactics players move their NFTs and tokens to another chain

article-image

Long before Ordinals, bitcoin gambling site SatoshiDice was blamed for spamming the chain

article-image

Néstor Palao spoke to Blockworks about the trends he’s seeing in crypto projects

article-image

Axiom merges Solana memecoins with Hyperliquid perps

article-image

Sponsored

Technology alone isn’t enough. It’s about how we introduce it, how we guide users through it, and how we make it feel like second nature.