# \[Proposal #792\]\[ACCEPTED\] Launch Neutron on Replicated Security

**URL:** <https://forum.cosmos.network/t/proposal-792-accepted-launch-neutron-on-replicated-security/10230>\
**Category:** Add Consumer Chain\
**Created:** [March 21, 2023, 3:00pm UTC](https://forum.cosmos.network/t/proposal-792-accepted-launch-neutron-on-replicated-security/10230 "2023-03-21T15:00:26Z")\
**Posts on this page:** 1\
**Showing post:** 27

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**Author:** ![lexa](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.cosmos.network/lexa/32/7415_2.png) [@lexa](https://forum.cosmos.network/u/lexa)\
**Post date:** [March 22, 2023, 1:38pm UTC](https://forum.cosmos.network/t/proposal-792-accepted-launch-neutron-on-replicated-security/10230/27 "2023-03-22T13:38:55Z")

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@waqarmmirza and @Spaydh - some governance archival work for you guys 🙂

I’m wondering if this is the idea being referenced (this is from the text of [Proposal #72](https://forum.cosmos.network/t/proposal-72-accepted-bringing-liquid-staking-and-defi-to-the-cosmos-hub-with-interchain-security/6623)) (emphasis mine).

> **Key Attributes of a Consumer Chain**
> 
> - Majority of gas fees go to developer DAO: **On this type of consumer chain, gas fees are paid in Atoms. For example, 25% of the gas fees are sent to the Cosmos Hub validators and delegators** for securing the chain, and the remaining 75% go to a DAO supporting the development of the consumer chain.

I don’t think this was intended as a ‘requirement’ of consumer chains so much as a speculation about what a consumer chain might be, so that people had the context to vote on an ICS-related proposal before many of the core features had been designed or developed (May 2022).

There was also something in the appendix text of [Proposal #187](https://forum.cosmos.network/t/proposal-187-accepted-v9-lambda-upgrade-with-replicated-security/8766#how-should-validators-think-about-revenues-and-costs-10):

> ### How should validators think about revenues and costs?
> 
> There are multiple ways a consumer chain could remunerate the Cosmos Hub validators:
> 
> 1. Transaction fees: By default, 25% of the consumer chain fees will be distributed to the provider chain. This number can be set differently for each consumer chain. Note that validators also have control over the minimum fee they are willing to receive.
> 
> 2. Token inflation: If the consumer chain has a token, they can allocate a portion of the inflation to the Cosmos Hub validators and delegators (in other words, “continuous airdrops”).
> 
> 3. Application fees: If the consumer chain doesn’t have a token, a percentage of the swap fees, usage fees etc. can be distributed to the provider chain as well.

But this was part of the FAQ/discussion, not what was voted on.

As far as I know, Neutron’s proposed compensation scheme is _better_ than anything that’s come up in Hub discussion. A 25% share of gas fees (including a deflationary asset) _and_ 25% of the MEV revenue _and_ a genesis allocation feels pretty sweet to me. I’m looking forward to hearing more about the genesis allocation when it’s ready to share!

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