A little bit of chit-chat
An Evmos governance proposal has been put forward to spend 3,000,000 EVMOS from the Community Pool to establish DAO Liquidity of EVMOS/JUNO within both ecosystems. If approved, the proposal will lay a sustainable foundation for liquidity, create a long-term alignment between the two protocols, diversify treasury in non-native tokens, and generate revenue through LP fees that flow back to the community or DAO.
A new chain in the Cosmos
Noble is launching a new purpose-built asset issuance platform for the Cosmos ecosystem soon. The platform is being developed in collaboration with Strangelove Labs and has been operating in stealth for months. The team behind Noble is focused on providing a secure, reliable and frictionless ways for asset issuers to both natively issue assets in Cosmos and leverage IBC. They believe that cross-chain communication will converge on a standardised interoperable communications framework that looks a lot like IBC. Noble is set to bring reliable distribution channels for Cosmos app-chains and users alike. In addition, Oak Security has conducted a third-party audit to improve the overall reliability and security of the Noble chain.
Noble initially planned to launch as one of the first consumer chains of the Cosmos Hub with the goal of providing users with a stable, reliable, and secure asset issuance platform. Instead, they changed course and decided to monitor developments in shared security for an initial period of time while the first wave of consumer chains begin to go live. For the purposes of the mainnet launch, Noble will initially launch as a Proof of Authority chain relying on a trusted validator set that represents a subset of Cosmos Hub validators. The validator set will be permissioned by equal shares of staking tokens. Economic security will derive from the permissioned nature of the set.
The tweet of the week
We are getting closer to the launch of the first consumer chain! Neutron officially proposed a security agreement with the Cosmos Hub in the community forum. The proposal involves Neutron sharing 25% of its transaction fees and MEV revenue with the Hub in exchange for providing security. Neutron will run a version of CometBFT (formerly known as tendermint) that features a blockspace auction. The auction enables searchers to bid for specific bundles to be included by block producers. Bids are to be denominated in NTRN. MEV revenue will scale with activity, volume, and total value locked.
The proposal has many synergies which include vertically scaling Replicated Security and strengthening ATOM. Neutron allows projects to launch on RS as smart-contracts without generating any additional cost for the Hub. Additionally, Neutron will host an ecosystem of DeFi products built around NTRN and ATOM, generating utility and demand for the tokens. Applications built on Neutron will enable Cosmonauts to use native and liquid staked ATOM to provide liquidity, lend, borrow, wield governance power, strip bonds, and more.
The launch timeline for Neutron involves finalizing the second audit report by the end of March. This will be followed by the voting period starting on April 3rd. If the proposal is accepted by the Hub Community then the launch period will begin on April 17th, with Neutron launching when a quorum of validators representing two-thirds of the voting power on the Cosmos Hub start running nodes for the network.
Noam, a community member interested in Neutron’s proposed payment system for ATOM holders and validators, recently raised two concerns; one about transaction fees being too low and the other about a lack of information regarding the token emission schedule. He also questioned who would possess governance power on Neutron, ATOM holders or NTRN holders, and whether this would apply to upgrades as well.
In response, the Neutron team acknowledged that transaction fees are indeed low on some chains due to the minimum fees being set too low. However, their models show that the expected annual revenue ranges from $2m to $20m, based on comparables (Evmos, Juno, Osmosis, and Terra) where average transaction fees range from $0.05-$0.1. While the team is yet to release information about the token emission schedule, they did assure the community that such information will be shared before the proposal goes on-chain.
Regarding governance power, the team clarified that NTRN holders would wield governance power on Neutron, including upgrades. However, ATOM holders retain the power to shut down the chain. This makes it unlikely that governance decisions on Neutron would directly or negatively impact the Hub. Overall, the Neutron team’s responses provided reassurance to Noam as well as the wider community about the proposed payment system and governance structure of the Neutron network.
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