Nearly a year ago Prop 72 was proposed and ratified as a business development effort for the adoption of Interchain Security (ICS) to create an incentive aligned economy around the Cosmos Hub. Prop 72 has been successful in its mission, having partnered with P2P to launch Neutron, a DeFi Hub and permission-less CosmWasm execution layer launched on the Cosmos Hub as a consumer chain.
Prop 72 Recipients:
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P2P / Neutron - Received 25,000 ATOM; Neutron is live on ICS (!)… The second tranche (25,000 ATOM) to be sent within the coming days. In addition to revenue from the security agreement with the Hub (25% of transaction fees and 25% of MEV revenue) an initial allocation of Neutron tokens will be allocated to the Hub as part of their airdrop. This is expected to be 40-47 million Neutron tokens. On the conservative end, and at the current price of Neutron (~$0.30) this equates to $12M, an expected initial return of 28x the original Prop 72 allocation. More here and here.
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Fairblock - Received 16,250 ATOM to support research and development for potential launch with ICS/Replicated Security. The Fairblock team is still exploring the possibilities of ICS/RS, however, there were/are major technical issues for using ICS in the protocol that are not solved to date and were not documented from the outset e.g. opting out vals, slashing mechanisms etc. Although ICS/RS is still on the roadmap for the Fairblock team, integration of MPC libraries with Cosmos chains in production is technically complex and requires careful testing and iteration. Therefore, they will forgo the second tranche and continue optimizing and testing their cryptography libraries independently to make sure it is feasible to do so; a more detailed explanation can be found here.
Prop 72 achieved its core goal of creating awareness and spurring demand for ICS/RS, and we believe there is/will be sufficient demand going forward without the need for continued allocation of Prop 72 funds. Additionally, we believe there are sufficient grant / funding programs, such as the ATOM Accelerator DAO, outside financing sources, and community technical support available for the Atom Economic Zone (AEZ), which were previously unavailable, and we encourage any teams considering partnering with the Cosmos Hub to make independent funding proposals. Therefore, the Prop 72 committee has returned the remainder of the funds, totaling 83,749 (net of second Neutron tranche) to the community pool. That tx can be found here.
A big thank you to the Neutron and Fairblock teams for their past and on-going contributions to the Cosmos Hub and Cosmos Ecosystem. Thank you to the Community for trusting us with this initiative. Our hope is that the precedent set by Prop 72 will be empowering to the ATOM community, and a calling card to all those who want to contribute to the continued success of the Cosmos.
- David, Zaki, Jack