Neutron is a blockchain platform that aims to provide a decentralized framework for various applications. It is designed with a focus on tokenomics, transaction fees, and a unique approach to managing funds through contracts. Neutron’s architecture is built to handle both local and cross-chain transactions, making it a versatile choice for developers and enterprises looking to leverage blockchain technology.
Transaction fees are a primary revenue source for Neutron. These fees come from both local transactions within the Neutron ecosystem and cross-chain transactions facilitated by Neutron’s Inter-Blockchain Communication (IBC) fee model. Fees can be paid using either NTRN or ATOM tokens. The distribution of these fees is as follows:
- 25% of the transaction fees are directed to the hub as payment for ICS (Inter-Chain Services).
- The remaining 75% is either burnt (if paid in NTRN) or sent to the Reserve (if paid in ATOM or other tokens).
Tokenomics and Fund Management
Neutron’s financial ecosystem is managed through three primary contracts:
The Reserve: This contract holds vested NTRN tokens. These tokens are then sent to the Neutron DAO core contract and the Distribution contract. The number of tokens that get unlocked in the reserve is directly proportional to the number of NTRN tokens burned while processing block fees.
Distribution Contract: This contract manages the second step of token distribution. Tokens sent here are distributed among shareholders. Shareholders are a configurable set of addresses with a specific number of shares. This contract allows shareholders to withdraw the tokens they’ve earned.
Neutron DAO Core Module: This is the primary module of the Neutron DAO, responsible for the overall governance and management of the Neutron ecosystem.
Neutron’s development has been marked by various milestones and updates. One of the significant events was the launch of the Neutron DAO core module, which serves as the backbone for Neutron’s decentralized governance and fund management.
This section should be expanded over time.
For those interested in diving deeper into Neutron’s architecture, tokenomics, and other technical aspects, check out there documentation, here.