[PROP #835][PASSED] Transfer unclaimed NTRN airdrop tokens to Cosmos Hub
Change log • 2023-09-20 Created initial post Summary This proposal seeks to ratify the following motions: • Authorize the Neutron DAO to execute a proposal to trustlessly transfer ~42,727,950 unclaimed NTRN tokens to the Cosmos Hub community pool. This requires instantiating specific smart-contracts to register an Interchain Account on the Cosmos Hub, transferring the tokens over IBC and executing a `FundCommunityPool` message. • Adopt the following rules for how the Cosmos Hub network, governance and community may use or deploy these tokens to ensure long-term alignment between Cosmos Hub and Neutron: • Do no harm : The Cosmos Hub, its governance and community pledge to only use or deploy the NTRN tokens in ways that do not harm the Neutron network or DAO. • Cooperation : The Cosmos Hub, its governance and community pledge to use or deploy the NTRN tokens in ways that benefit both the Cosmos Hub and the Neutron network and DAO. Governance votes The following items summarize the voting options and what they mean for this proposal: YES : You authorize the Neutron DAO to perform the steps required to trustlessly transfer unclaimed airdrop tokens to the…
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It’s a no-brainer to vote yes to free NTRN tokens in the Community Pool imo
Looks like an easy yes.
24-9-2023
I saw this tweet, and I think it can be a better way to spend these NTRN, if we split a portion of these NTRN with validators. For their services.
Free NTRN?
Free NTRN.
Yes pls.
Will the vehicle contract be tested and reviewed properly?
Otherwise its a sure yes.
Yes, the contract will be tested and audited.
One idea about this proposal, since the revenues provided by Neutron to the Cosmos Hub have been negligable for many months now, why instead of just sending all this NTRN to the Cosmos Hub community pool these funds are used as revenues for the Cosmos Hub? Maybe not all at the same time but over several months?
ATOM stakers and validators were expecting revenues from Neutron, at a minimum to cover the additional infrastructure costs but this hasn’t been the case. Neutron now has an opportunity to improve this by using these ~42M NTRN as revenue for the Cosmos Hub. The community pool is already very well funded after the increase of the community pool tax from 2% to 10%, so why sending then this ~42M NTRN to the community pool instead of using it as revenue for the Cosmos Hub validators and stakers? @Spaydh
In the case of the AAT is voted … why not. But I join Cosmic Validator.
I think this is a rather short term solution to the problem of validator compensation that ends up costing more in the long term. Both the voting power on Neutron and the idea of the Hub’s PoL being used within the AEZ are vastly more impactful to the price of ATOM in the long term than receiving these tokens as an airdrop right now. I don’t think anyone expected NTRN to be generating serious money in a bear market, under a year. Airdropping these tokens now without any vesting would likely nuke the NTRN price btw, making any revenue coming to validators even less helpful moving forward. But I get it. It’s a bear market and your costs are going up and you need to pay bills. So, I do think we should just get started with that increase in validator commission. I also think we need to come up with better models to make sure all validators earn enough to get by. This is something I’m posting about, likely next week or the one after (Stability Reserve Fund). But I would highly caution against short term fixes like paying out NTRN to all validators and delegators. In the short term we have the soft opt-out option that’s available to every unprofitable validator in the bottom 5%…
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We made a poll on twitter which has hundreds of votes so far and the vast majority is voting to send the NTRN tokens to stakers and validators rather than to the community pool, we should also hear what the community has to say. Also, some people mentioned that it doesn’t have to be all or nothing for each case and a balance could be found. A part of this ~42M NTRN could be sent as suggested to the community pool, but other part should be used as a ‘Stability Reserve Fund’ for Neutron to provide a minimum reasonable revenue to the Cosmos Hub. This could actually be a great opportunity to try your Stability Reserve Fund idea. Why part of this NTRN isn’t moved to USDC gradually with little price impact and then this is used as revenues for the Cosmos Hub? I mean Neutron has to pay the bills to the Cosmos Hub. We funded the Neutron development, gave like 450k ATOM for liquidity of some Astroport pools, providing security for free to Neutron for months, I mean nothing is for free, they should start paying the bills.
Edit to add current results of the twitter poll:
Of course the community decides and should weigh in. This is always the case! Though a poll is anecdotal, and on-chain votes are what really matters. I’m just voicing my opinion on the matter obviously.
I just think it’s hurting the Hub in the long term to ask for payment now. We all understood consumer chains are often an investment of time & resources in what is hopefully a good payoff. No investor that I know expected an ROI within the same year. These things take a while.
I also don’t think we can expect the NTRN token holders to agree to these tokens being paid out directly to validators and delegators (and subsequently likely being sold on the open market).
I would like this proposal to pass as it is so that Neutron can fulfill their agreement that was defined in prop 792.
Certainly, afterward, we can have a conversation about what to do with the funds in the community pool.
Honestly? This makes perfect sense
I think it makes even more sense looking at the data released by Numia. In the month of September, Neutron brought to ATOM stakers and validators a total of $335 in revenue, and some people asked on twitter if $335 had a typo. Even if this revenue was not shared with stakers, and given to only 1 validator out of 180, still wouldn’t even be enough to cover infra costs for running Neutron of one validator: https://twitter.com/NumiaData/status/1710458669274398995
Personally I would rather have the tokens on the community pool and solve the challenge of how the hub votes on neutron’s governance.
Profitability of nrtn for validators is an issue but hopefully it is only a short term issue. Selling ntrn tokens to cover those costs doesn’t feel great. The long term alignment of the hub and neutron feels more important.
Either way I think the best plan is to do an initial transfer to the community pool and then look at how best to use these tokens.
The proposal has been updated to “Last Call” status. The on-chain proposal is expected to be available shortly.
Support this. Let’s go.
First of all this proposal is sign of great professionalism from the Neutron team, the real sign of a long term engagement with actual economic foundations.
At Govmos we propose a balanced allocation composed of
- 30% allocation in the Neutron’s Voting Vault to avoid taking too much grip on the protocol’s governance.
- 30% allocated to LP in the forthcoming Duality DEX with a progressive assignment over 6-12m to create a smoother entry in the market and avoid creating unfair competition against astroport.
- 40% kept in the community pool to create a base liquidity to the AAT proposed by @Noam .
For now it makes no economical sense to borrow stablecoins, but that strategy could be an option in a more stabilized market environment with sustainable defi primitives at play. Our recommendation on that from would be to wait until the AEZ has its own lending/borrowing protocol.
Has this proposal been passed yet?
No,sir you go to the keplr wallet to vote.
yes
free the token SOoon