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

article-image

Luckymane/Shutterstock modified by Blockworks

share

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.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

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.

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.

recent research

Research

article-image

The platform also rolled out 13 tokenized funds for institutions on the Connect platform

article-image

The company’s expanded lineup introduces new ETF products, as more and more issuers get into crypto funds

article-image

President Donald Trump announced a 10% levy on almost all goods and additional tariffs on so-called “worst offending” countries

article-image

Solana may be in “recomposition” mode, as new protocols put usefulness ahead of mere virality

article-image

The stablecoin issuer will have to contend with bigger players and the interest rates environment

article-image

The president reportedly was still working on his tariff policy plans late Tuesday evening