What is Neutron?

Summary: Neutron is a new blockchain within the Cosmos ecosystem, employing CosmWasm and Interchain Security to enable robust, decentralized operations across multiple blockchains. Its capabilities include Interchain Queries and Accounts for dynamic data retrieval and transaction execution, alongside a decentralized governance structure led by the Neutron DAO.

With a strong focus on security and efficiency, Neutron powers notable applications like Astroport and Mars Protocol, driving forward the functionality of DeFi on Cosmos.

What is Neutron?

Neutron is a blockchain network part of the Cosmos-family, focusing on integrating Smart Contracts through CosmWasm. It operates within networks using the Inter-Blockchain Communication (IBC) protocol and benefits from the Cosmos Hub's security, which provides block validation via Interchain Security. This structure lets Neutron have robust security without needing its separate validator set.

Geared towards enhancing the functionality of Cosmos SDK, Neutron employs technologies like Interchain Queries (ICQs) and Interchain Accounts (ICAs) to facilitate smooth additional querying and transaction possibilities across different blockchains. These features dramatically expand the capabilities of developers working within the Cosmos ecosystem by enabling secure and efficient cross-chain interactions.

Notable applications running on Neutron include Astroport, which provides decentralized exchange services, and Mars Protocol, known for its groundbreaking lending solutions.

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How do Interchain Queries Work?

Interchain Queries and Transactions are crucial for Neutron, allowing smart contracts to engage with multiple blockchain networks effectively. Interchain Queries retrieve necessary data from other chains, providing smart contracts with the information required for informed decision-making. Interchain Transactions enable operations across these networks, such as executing transactions or managing accounts, thus enhancing the functionality of decentralized applications.

Here’s a straightforward overview of each component’s operations:

• Query Types: Interchain Queries (ICQs) allow Neutron smart contracts to access data from blockchains within the Cosmos network via two types of queries: Key-Value (KV), which reads data from another chain's storage, and Transaction (TX), which searches for transactions based on specified filters.
• Query Execution: Smart contracts register queries indicating the query type and details. An ICQ Relayer monitors these registrations, executing the queries at scheduled intervals by making RPC calls to the targeted chain.
• Data Handling: For KV Queries, results are stored in the ICQ module and the relevant details are passed to the contract. TX Queries pass their results directly to the registering smart contract's handler.
• Query Lifecycle: Queries require a deposit for registration, acting as escrow. Conditions based on transaction heights and service periods dictate eligibility for removing a query and claiming the deposit, ensuring system clean-up.
• Security and Verification: Limitations with ICS23 proofs mean queries for nil or empty values fail; developers must avoid querying such values to prevent errors. This is critical for ensuring the accuracy and reliability of interchain data retrieval.

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What is the Neutron DAO?

The Neutron DAO is the governance body of the Neutron blockchain, utilizing customized DAO DAO contracts to manage the network. It consists of the main Neutron DAO and several subDAOs. This governance system diverges from typical Cosmos SDK models, instead employing an admin-module for critical decisions like software updates and network parameters.

The Neutron DAO supports multiple proposal types and maintains a sophisticated system of voting power through various voting vaults that aggregate contributions from multiple sources, ensuring a secure and democratic decision-making process.

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Neutron Tokenomics

Neutron's tokenomics are built around its native token, $NTRN, which has a total supply capped at 1 billion tokens, with no further inflation. This finite supply underscores the token's value and utility within the ecosystem. Revenue primarily comes from transaction fees, part of which secures the network, while the rest are either burned or reserved, promoting a sustainable economic model.

The distribution of the 1 billion $NTRN tokens is categorized as follows:

• Founders: These tokens are locked for one year and then released linearly over three years. Importantly, they have no voting power during the lock period.
• Early Backers: Similar to founders' tokens, these are locked for a year and then unlocked linearly over three years, with the distinction of having voting power even during the lock period.
• Community: Allocated through airdrops and launch events, these tokens have a 3-month unlocking period and optional lock-up, accompanied by voting power.
• Neutron DAO: Held in the DAO’s Reserve and Treasury, these tokens are mostly liquid but require majority voter approval for usage or transfer.

With this distribution strategy, the initial circulating supply of $NTRN is approximately 66%, split between the community and the team. The token's utility spans governance, transaction facilitation, and as a staple asset in DeFi activities within the Neutron network, reflecting its comprehensive role and the community's vested interest in its success and governance.

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Neutron Team

Neutron was founded in early 2023 by Avril Duthiel, previously associated with Lido DAO. The project quickly gained traction with strong backing from notable investors including Binance Labs, CoinFund, Delphi Ventures, and others, accumulating $10 million in funding. This substantial support reflects confidence in Neutron's potential to advance the Cosmos ecosystem, providing solutions for smart contract security, neutrality, and cross-chain interoperability.

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Bottom Line

In summary, Neutron significantly enhances the Cosmos ecosystem by leveraging CosmWasm and Interchain Security, facilitating secure and dynamic cross-chain functionalities. Its decentralized governance through the Neutron DAO and strategic $NTRN tokenomics underpin a robust, developer-friendly platform. These capabilities position Neutron at the forefront of blockchain innovation, poised to expand the utility and reach of decentralized applications.