Citation:
In the field of the latest blockchain technology, Celestia's modular blockchain concept opens up a new path for blockchain expansion and optimization. A striking case is the application of Manta: by adopting Celestia as its data availability layer instead of the traditional Ethereum platform, Manta achieved more than 99% savings in fees, which attracted widespread attention in the industry. (For details, see relevant information: https://twitter.com/nickwh8te/status/1743311211683545540).
Going forward, we foresee thousands of rollups choosing Celestia as their data availability layer, laying the foundation for a new, scalable rollups ecosystem. Currently, $TIA’s price growth is driven by its unique position in the modular narrative, which provides the only liquidity exposure in the market and does not have any token unlocking plans for the next year.
As the modular narrative continues to grow, we expect venture capital will increasingly look to invest in Celestia or other high-quality modular projects. Under such a trend, Celestia has the potential to become the next Cosmos hub. Therefore, the market and investors should pay close attention to key projects in the development stage in the modular ecosystem, such as Dymension and Neutron.
Project Overview
When exploring the background of the Neutron project, we can see its leading position in the IBC (Inter-Blockchain Communication) ecosystem. Neutron is not only an important gateway connecting the Cosmos network to other systems (especially Ethereum and the modular world), but it is also specifically designed to be the platform of choice for deploying cross-chain smart contracts.
Neutron enters the world of modular blockchain with its Nexus component. Nexus was built by developers from Neutron, Hyperlane and Mitosi and integrates IBC and Hyperlane's modular security technologies. This platform creates a bridge between Cosmos, Ethereum, and the modular ecosystem, enabling fast and secure transfers of assets. It supports asset transfer to any rollups (such as Arbitrum, Manta, Eclipse, etc.), providing cross-chain applications with the ability to quickly access liquidity in various fields in the Cosmos and Celestia ecosystems.
Therefore, Neutron provides interoperability between multiple blockchain ecosystems, making it a high-risk, high-reward investment option for $TIA. Not only does it play a key role in the Ethereum and Celestia ecosystems, but it also has a place in the Cosmos ecosystem.
Neutron在其网络上支持的智能合约应用和rollapps可以通过IBC技术在超过50个互联网络中实现扩展，这些网络涵盖了Cosmos和EVM链。这一特点使Neutron在Cosmos中的IBC流量中占据了领先位置，甚至超过了Injective、dYdX和Kujira等知名链。
It is worth mentioning that Neutron has established a close connection with the Cosmos Hub and IBC ecosystem. It has formed a strong alliance with the ATOM community by sharing 25% of transaction fees and miner extractable value (MEV) revenue. This strategic move not only strengthens Neutron’s position in the Cosmos ecosystem, but also adds momentum to its development in the entire blockchain field.
Financial Ecosystem:
A key initiative in Neutron’s ecosystem development is the launch of its grant program, which provides financial support to innovative decentralized applications (dApps) with 20 million NTRN tokens, representing 2% of their total supply. This strategy is designed to stimulate innovation and growth on the network.
On the Neutron platform, several well-known dApps with strong user base and network effects have already begun construction. These include:
Lido: The developers of Lido have released an innovative framework aimed at bringing their liquidity staking protocol to the Cosmos ecosystem via Neutron. This move marks an important step for Lido in expanding its cross-chain capabilities.
●Mars Protocol: This is a cross-chain currency market, and its cooperation with Neutron demonstrates their joint efforts to promote financial decentralization.
In addition, Neutron is working with multiple projects within the Cosmos economic zone, including Catalyst, Pulsar Finance, Amulet Finance, Duality, Astroport and Shogun. These partnerships not only strengthen Neutron’s position in the Cosmos ecosystem, but also provide a solid foundation for its influence and scalability in the broader blockchain space.
Token Economics:
Market capitalization and ranking: Neutron’s current market capitalization is approximately US$385 million, ranking 150th in the global cryptocurrency market.
Fully diluted valuation (FDV): Assuming all tokens are circulated, its fully diluted valuation reaches $1.3 billion.
Total Value Locked (TVL): Neutron’s total value locked in the decentralized finance (DeFi) space is $50 million, according to DeFiLlama.
Circulating supply and maximum supply: The current number of NTRN tokens in circulation is 278.68 million, accounting for 27.87% of the maximum supply (1 billion).
Regarding the token unlocking situation, as of June 2024, there are no significant token unlocking plans from key stakeholders (including the team, investors, and advisors). 1.67 million tokens (0.17% of the maximum supply) will be unlocked every month, primarily to enhance market liquidity. This periodic unlocking mechanism may be considered a “bullish unlocking” because it helps increase market liquidity, thereby attracting large investors and institutions to purchase tokens in larger quantities.
The main uses of Neutron Token (NTRN) include:
●- As a fuel currency for dApps: NTRN is used to activate and run decentralized applications on the network.
●Governance participation: Holders can bind NTRN tokens to the voting vault to participate in network governance and decision-making processes.
●Basic DeFi assets:
Pair with other tokens in liquidity pools and yield vaults to enhance liquidity.
Used as collateral in the currency market.
As a payment currency in decentralized autonomous organizations (DAOs) on the network.
Inflation and Token Liquidity Management:
The Neutron network manages token flow from multiple channels through its distribution module, including transaction fees, MEV-Tendermint bids, and dApp revenue sharing.
The network allocates 25% of token revenue to the Cosmos Hub as compensation for replicating security.
The remaining NTRN tokens are destroyed, forming a deflationary asset model.
Fees collected in currencies other than NTRN are allocated into the DAO’s reserves and used to support the growth and operations of the network.
Token distribution strategy:
Treasury: accounting for 27.00% of the total supply, it is a liquid asset and is controlled by the governance mechanism. 10% of the supply has been voted by governance to be transferred to the Foundation.
Reserve: 24.00% of the total supply, unlocked based on on-chain activity, the more activity, the faster the tokens are unlocked and vice versa.
Team: 23.00% of total supply.
Investors: 11.00% of total supply.
Airdrop: 7.00% of total supply.
Liquidity guidance: 5.00% of total supply.
Binance Launch Pool: 2.00% of total supply.
Advisors: 1.00% of total supply.
Token unlocking plan:
Source: https://cryptorank.io/price/neutron-ntrn/vesting
Fundraising status:
●In the seed round of financing on June 21, 2023, Neutron raised US$10 million, with a token issuance price of US$0.09, and has currently achieved a return on investment of 15.39 times.
●A total of 110 million tokens were sold in this round of financing, accounting for 11.00% of the total supply.
●This round of financing was led by a number of well-known investment institutions, including Binance Labs, Delphi Digital (Delphi Labs), CoinFund, LongHash Ventures, Semantic Ventures and Nomad Capital.
●This comprehensive token economic structure not only provides Neutron with a solid financial foundation, but also establishes its unique position in the cryptocurrency market through its close connection with the Cosmos Hub.
Bullish factors:
●In the Cosmos decentralized finance (DeFi) ecosystem, Neutron plays a fundamental role. Compared to its main competitors (ATOM, TIA, SEI, and INJ), Neutron offers an interesting set of features but has a relatively low valuation, suggesting it may be undervalued by the market.
●Neutron will soon provide settlement services for Celestia rollups and serve as the main bridge for $TIA liquidity, which is of great significance in the field of DeFi modularization.
●There are no major token unlocking events scheduled for any stakeholders in the next six months, which provides guarantee for market stability.
●NTRN has been listed on multiple major centralized exchanges (such as Binance), which enhances its liquidity and market exposure.
●NTRN has attractive token economics features. There is no inflation in the system and it is a deflationary asset. 75% of the handling fees are destroyed.
Bearish factors:
●With the rise of a new wave of modular blockchain protocols, Neutron may face competitive pressure from these emerging protocols, which may distract from the current focus on Neutron.
●Although Neutron initially followed TIA’s price movements, community interest in it subsequently waned, resulting in a decline in its influence in the market.
●Neutron的链内生态活动相对较低，其总锁定价值（TVL）为50M，主要集中在Astroport，显示了其在DeFi领域的限制性参与。