INTRODUCTION
Celestia\modulars blockchain thesis → It's a fundamentally new way of scaling blockchains. For reference: Manta saved >99% in fees by using Celestia for Data Availability instead of Ethereum (more info on this here).
Future outlook → thousands of rollups that use Celestia for data availability, a base layer for a new scalable ecosystem of rollups.
$TIA has been pumping because it is the only liquid exposure to the modular narrative, with no unlocks for a full year.
If the modular narrative continues to grow at a similar rate, VC money will likely seek exposure to Celestia or any high-quality modular projects, with Celestia potentially becoming the next Cosmos hub. We should pay attention to key projects being developed in the modular ecosystem, such as Dymension and Neutron.
NEUTRON
Project overview
Built by contributors to Neutron, Hyperlane and Mitosis, Nexus leverages IBC and Hyperlane’s Modular Security stack to unleash liquidity flows between Cosmos, Ethereum and the Modular ecosystem. It enables the fast and secure transfer of assets to and from any rollups : Arbitrum, Manta, Eclipse, etc. Cross-chain applications can swiftly integrate with and tap into the liquidity of any domains across the Cosmos and Celestia ecosystems.
So basically, Neutron is offering settlement for Celestia rollups and can be viewed as a higher beta bet of $TIA given it’s positioned to interoperate between Ethereum, Celestia and Cosmos ecosystems.
Ecosystem
Neutron launched a grant program allocating 20M NTRN tokens (2% of supply) for funding innovative dApps on the network. Some notable dApps with strong existing user bases and networks effects are also building on the Neutron, including:
Tokenomics
MC: $385M (Rank #150)
FDV: $1.3B
TVL: (DeFiLlama): $50M
Circ. Supply: 278.68M (27,87%)
Max Supply: 1B
Unlocks: No notable unlocks till June 2024 for major stakeholders including the team, investors, and advisors. Monthly unlocks of 1.67M tokens (0.17% of Max Supply) allocated to liquidity bootstrapping. This could be, as Chiraag mentioned a couple of times, “a bullish unlock” as it will help increase liquidity depth and enable whales and institutional investors to bid up the token with size. I might be wrong here.
Token Utility:
- Pairs with tokens in liquidity pools and yield vaults.
- Used as collateral in money markets.
- Functions as a payment currency for DAOs on the network.
Inflation:
The Distribution Module in the network manages the flow of tokens from various sources like transaction fees, MEV-Tendermint bids, and dApp revenue shares. It allocates these tokens according to specific rules. Here's how it works:
Token distribution:
Vesting Schedule:
Source: https://cryptorank.io/price/neutron-ntrn/vesting
Fundraising
On June 21, 2023, a Seed Round raised $10M at $0.09 per token (15.39x ROI).
A total of 110M tokens (11.00% of TS) were sold.
Investors: Leading the round was Binance Labs, Delphi Digital (Delphi Labs), CoinFund, LongHash Ventures, Semantic Ventures and Nomad Capital.
Bullish Fundamental Factors
Bearish Fundamental Factors