Proposal 993 is now live on the Cosmos Hub, marking a pivotal moment in the evolving relationship between Neutron and the broader Cosmos ecosystem. This governance proposal supports Neutron’s transition to a sovereign network via the upcoming Mercury upgrade, while outlining new mechanisms for ongoing collaboration with the Hub.
Supporting Sovereignty Without Severing Synergies
The proposal does not require code changes on the Cosmos Hub side. Once the Mercury upgrade is executed on Neutron (scheduled for April 9), the Replicated Security and Top-N logic will be removed from the Hub. However, Partial Set Security will remain an option.
To facilitate the migration, Cosmos Hub validators are asked to continue validating Neutron through the transition period. For their role in ensuring a smooth shift, 1 million NTRN will be distributed to qualifying validators. A further 10.8 million NTRN is earmarked to fund Neutron’s sovereign validator set for the next two years, composed largely of existing Cosmos Hub-aligned operators.
Real Utility for ATOM on Neutron
A notable portion of the proposal—over 4.2 million NTRN—is dedicated to incentivizing ATOM-based DeFi use cases on Neutron. These include liquid staking, lending, liquidity provisioning, and derivatives. The Neutron Foundation will coordinate with protocols to launch targeted campaigns designed to deepen ATOM integration into Neutron’s on-chain economy.
Resource Return and Reinvestment
The proposal returns 50,000 ATOM to the Cosmos Hub Community Pool—funds initially allocated to Neutron under Proposal 72. It also redistributes ~53% of the 42.7 million unclaimed NTRN airdropped to the Hub. The remaining ~47% will go back to the Neutron DAO for ongoing ecosystem development.
Joint Governance and Ecosystem Cohesion
To manage these funds, a Joint Committee made up of Cosmos Hub and Neutron community members will be established. This group will oversee NTRN disbursements across validator rewards, ATOM incentives, and future partnerships designed to support both ecosystems.
A Step Toward Operational Alignment
Proposal 993 reflects a maturing interchain strategy—one that respects sovereignty while encouraging meaningful cooperation. If passed, it sets the tone for deeper alignment across the Cosmos stack, where shared infrastructure can drive mutual growth.
🗳️ Voting is open until April 9, 2025.
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