In a thread of Tweets today, popular interchain service provider, Cosmos Hub unveiled plans to launch Neutron on its network. According to the announcement, Neutron is a permissionless CosmWasm platform. The development surfaced after proposal #792 “Launch Neutron on Replicated Security” received more than 99% votes in its favor.
Consequently, Neutron will leverage Cosmos Hub’s security to strengthen its platform. The announcement established that with the support Neutron will be the most secure CosmWasm platform on the Cosmos ecosystem. In return, Cosmos Hub will gain some certain benefits. Some of these incentives include a return on transaction fee, and entitlement to the native airdrop of the token during its initial drop.
As revealed, Smart contract applications deployed on Neutron will manifest without whitelisting them through a governance post. Similarly, applications on the platform will be made available to a wide range of users. In that regard, Cosmos Hub will leverage this to expand its presence in the DeFi space. According to DeFiLlama, the Total Value Locked on the Cosmos Hub ecosystem is $791,396.
How the Launching of Neutron on Cosmos will aid the adoption and utility of ATOM
Furthermore, the introduction of Neutron will help enhance the position of ATOM as an interchain reserve currency. Worth mentioning that ATOM is the native token of the Cosmos Hub ecosystem. In the announcement, Cosmos Hub highlighted how the initiative will help strengthen the position of ATOM.
The firm highlighted how the launching of Neutron will help the token in sectors like DeFi, and Treasuries. The launching of the project will help drive the adoption of ATOM in the DeFi space. This will be made possible as a result of the structure of the newly launched platform. As revealed, Neutron is structured to host DeFi innovations designed on its native token and ATOM. Therefore, creating a pathway for ATOM to gain more uses.
Also, hosted applications on Neutron will allow the Cosmos community to use native and liquid-staked ATOM to offer liquidity, strip bonds, lend, borrow, and wield governance power. These are aimed at driving demands for ATOM while reducing its circulating supply. Alongside this plan, the push for the adoption of ATOM in top treasuries will complement the recent effort from Cosmos and Neutron.
According to Coinmarketcap, ATOM is presently trading at $10.97 and the token has been struggling in the market.