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Happy Weekend 🙋🏻‍♂️,

Welcome to Chain Venturer, a series of intriguing conversations with crypto investors. This week, we have Lanre Ige of the Neutron Grants Program.

The Neutron Grants Program (NGP) is a $20M initiative from the Neutron blockchain to grow its ecosystem. Neutron is a Cosmos-based blockchain network designed for writing smart contracts using CosmWasm. Binance Labs and CoinFund led its $10M seed round in June 2023.

Lanre is also an independent researcher who has consulted notable clients such as Eclipse and Jito. Before that, he spent his career as a researcher on various companies including Menai Financial Group, Mosaic, and 21Shares.

If you would like to participate in a future episode, DM me here.

-Marco

In case you don’t know…

We have a crypto investment syndicate. You can check out our beta site here, but here’s a quick pitch:

💡 Why Us?

• Media arm: Newsletter with 15,000 subscribers including interview series with crypto investors that collectively manage $1 billion+

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Anyway, enjoy this week’s conversation.

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TOGETHER WITH

Flare Networks

Flare's early investors have reinforced their commitment to Flare, the premier Blockchain for Data platform, by agreeing to significant investment and token vesting extensions.

This strategic move aims to enhance the Flare ecosystem by reducing FLR token liquidity, boosting capital for Flare DeFi protocols, and fostering new investments in ecosystem projects.

Key aspects of the agreement include:

• Extending the token vesting period to Q1 2026

• Limiting token sales to 0.5% of the 30-day average volume

• Reinvesting at least 50% of token sale proceeds back into the ecosystem, potentially amounting to $35M.

This initiative, which also includes a 68% reduction in upfront token distribution and a commitment to ecosystem reinvestment, underscores the investors' long-term vision and support for Flare's innovative network and its diverse range of projects, from lending protocols to cross-chain bridges.

Head over to the blog post to read the full update 👇

Lanre Ige of the Neutron Grants Program

Lanre Ige is the Grants Lead & Director of the Neutron Grants Program (NGP), a DAO-adjacent Grants Program for Neutron to issue grants for Neutron-related technical research & development and other initiatives beneficial to the Neutron ecosystem. 

NGP aims to be a DAO-linked initiative designed to fund technical research, development, and other projects beneficial to the Neutron ecosystem. Governed by a 'BORG' structure, the program offers transparent and accountable management through smart contracts.

The NGP has been allocated 20M NTRN, with a dedicated smart contract overseeing the distribution of up to 10.8M NTRN in annual grants. The focus of NGP is to position Neutron as the DeFi Hub of the Cosmos ecosystem.

Lanre is also a Research Consultant at Eclipse, the fastest and first Ethereum L2 powered by the Solana Virtual Machine (SVM). Lanre also offers specialized consulting in the digital assets sector, providing research and advisory services focused on token design, ecosystem development, investment research, and data science for established companies, investment funds, and early-stage startups.

Lanre is a seasoned researcher, he started his career as a researcher in 2013 and worked for companies like Mosaic, Menai Financial Group, and Jito Labs as a Researcher. Lanre was a Senior Research Associate at 21Shares from 2019 - 2021. He served as Grants Committee Member for Perpetual Protocol from 2021 to 2023. 

Lanre studied Statistics at Birkbeck, the University of London, and Philosophy, Politics & Economics at the University of Warwick. Lanre is a Trustee at the Young Barnet Foundation, a non-profit organization supporting Barnet's children and youth charities.

Here’s my conversation with Lanre Ige.

Quick takeaways:

• The NGP aims to support technical research, development, and other initiatives beneficial to the Neutron ecosystem, with a particular focus on positioning Neutron as the DeFi Hub of the Cosmos ecosystem.

• The NGP is particularly interested in supporting projects that enrich the Neutron ecosystem and enhance interoperability and functionality across the Cosmos network.

• The NGP operates with robust legal and on-chain accountability mechanisms, including public bylaws and a multi-signature setup with a three-day veto process for grant proposals.

• Lanre is excited about the potential for innovation within the blockchain domain, particularly in the development of social applications and on-chain gaming.

• The ease of launching independent blockchains, facilitated by modular frameworks, is expected to drive rapid innovation and product-centric development.

What was the defining moment that drew you into the world of crypto?

Lanre's journey into the world of cryptocurrency began during their first year at university in 2014, marked by a research internship at a libertarian think tank based in London. Despite not being particularly libertarian, the opportunity presented by the think tank introduced Lanre to the burgeoning field of digital currencies. 

Around this time, Bitcoin started gaining more media attention, catching Lanre's interest partly due to the philosophical discussions surrounding private money by libertarian thinkers like Friedrich Hayek. 

Motivated by this ideological framework, Lanre authored a research paper on Bitcoin from a Hayekian perspective. This paper served as Lanre's initial foray into the cryptocurrency world, blending their academic focus on philosophy, politics, and economics with emerging digital asset concepts.

The defining moment: The pivotal moment for Lanre, however, arrived in 2017. After accumulating experience in finance through internships and work placements, Lanre grew disillusioned with traditional finance sectors. 

The rise of Ethereum and the broader token ecosystem during this period ignited Lanre's curiosity, marking a significant shift in their perception of cryptocurrencies—from viewing them merely as alternative forms of currency to recognizing their potential as a platform for decentralized computation and innovation. 

This realization aligned cryptocurrencies with transformative technological advances like smartphones, desktop PCs, and cloud computing in Lanre's mind, marking a departure from their initial understanding of digital currencies.

Fueled by this newfound perspective and the desire to carve out a niche in an engaging and burgeoning field, Lanre delved deeper into the crypto space. Their engagement with the London crypto scene, active participation in events, and networking on social media platforms, eventually led to a position working with Dr Garrick Hileman. Dr Hileman, an early academic voice in the crypto conversation, aimed to establish a data company to address the glaring deficiencies in crypto data quality at the time. This venture, Mosaic, became Lanre's entry point into the crypto industry, setting the stage for a seven-year (and counting) journey through the evolving landscape of digital assets

What is Neutron, Neutron Grants Program and what kind of projects are you looking for?

Lanre leads the Neutron Grants Program, established as the Neutron Grants Foundation, a separate entity from the Neutron Foundation. This program focuses on incubating and supporting developers, entrepreneurs, and applications within the Neutron ecosystem to foster its growth.

Funded with 20M Neutron tokens in October, the foundation operates with an annual mandate, requiring validation of its achievements by the main DAO to continue utilizing the funds, with a stipulation to spend up to half each year.

The Neutron Grants Program, under Lanre's leadership, aims to fund projects that benefit the Neutron ecosystem, encompassing a wide range of initiatives from application development, research, and protocol development on the Neutron blockchain, to marketing efforts.

Lanre's involvement began around April-May 2023, driven by a longstanding interest in the Cosmos ecosystem and introductions facilitated by prominent figures within the space. Neutron, emerging from the team behind Lido and PTP Validator, represents an offshoot focused on leveraging the team's expertise for the Neutron blockchain, previously involved with Lido on Terra.

Addressing common issues in grant programs such as lack of accountability and focus, the Neutron Grants Foundation was established with robust legal and on-chain accountability mechanisms. Legal structures, designed in collaboration with Gabriel Shapiro, provide public bylaws that ensure adherence to governance rules, with on-chain mechanisms allowing for DAO oversight through a multi-signature setup and a three-day veto process for grant proposals.

Neutron distinguishes itself as a Cosmos chain by not being just another app chain but a generalized smart contract chain where developers can deploy CosmWasm smart contracts. It positions itself as an integrated platform, balancing between offering application-specific features and maintaining a permissionless environment for smart contract deployment.

Notably, Neutron introduced the duality DEX module, showcasing its unique approach to integrating application-centric features without being overly opinionated, thus fostering an environment conducive to innovation and development within the Cosmos ecosystem.

The Neutron Grants Program, through Lanre's vision, actively seeks to support projects that address specific needs within the Cosmos ecosystem, such as the development of decentralized stablecoins post-Terra and yield-based AMMs that utilize fixed or fluctuating yields.

By adopting a more opinionated funding strategy, Lanre aims to address the gap in developer activity within Cosmos compared to ecosystems like Solana and Ethereum and to support applications that enrich the Neutron ecosystem and enhance interoperability and functionality across the Cosmos network.

Given your background in researching various blockchain technologies like Eclipse, shared sequencers, Solana's transaction fees, and Neutron, what is your overall perspective on the future of Layer 1 and Layer 2 blockchains?

Lanre naturally leans towards a multi-chain thesis. Unlike some proponents who envision a single blockchain dominating the landscape, Lanre appreciates the diversity of blockchain solutions, each offering unique value propositions. This perspective stems from a belief in a decentralized, heterogeneous landscape where different chains serve varied purposes, reflecting the permissionless nature of blockchain innovation.

Lanre foresees a future where a few major chains, such as Bitcoin, Ethereum, or Solana, address broad, heavy-duty use cases like sovereign money or generalized compute platforms. Simultaneously, Lanre anticipates the proliferation of niche app chains tailored to specific use cases, akin to the diversity seen in centralized exchanges. 

The choice between launching as a Layer 2 on established platforms like Ethereum or Celestia or operating an independent validator set hinges on a mix of technical, legal, and strategic considerations rather than a one-size-fits-all approach.

Highlighting the nuanced decision-making process behind deploying roll-ups or app chains, Lanre notes the trade-offs between ease of management, regulatory considerations, and the strategic benefits of leveraging existing user bases. For instance, launching a roll-up on Ethereum might be driven as much by marketing strategies to attract Ethereum users as by technical advantages.

Lanre argues that the crypto discourse often overlooks these strategic considerations, focusing instead on technical breakthroughs. However, as the industry matures and stabilizes, Lanre expects a shift towards discussions that more closely resemble those in traditional tech and business sectors, where product and market positioning take precedence over technological novelty. 

This evolution will likely lead to a richer, more nuanced understanding of blockchain technologies as products tailored to specific needs, moving beyond the speculative fervor that characterizes much of the current landscape.

What are you excited about in the next one or two years I guess? 

Lanre is particularly captivated by the potential unleashed by the ease of launching independent blockchains. This shift, fueled by modular frameworks, democratizes the process, enabling rapid innovation and product-centric development in the blockchain domain. Lanre's primary focus for the coming year centers on exploring the downstream innovations that emerge from this newfound accessibility.

One area of keen interest is the development of social applications within this modular framework. Lanre cites Farcast as an early example but sees vast untapped potential in leveraging blockchains for immutable storage of metadata, such as user profiles in social media contexts. This approach could fundamentally transform how we interact with and conceive of social media, ensuring authenticity while maintaining privacy.

Additionally, Lanre is excited about the prospects of on-chain gaming, facilitated by the affordability and flexibility of application-centric frameworks. The possibility of setting up ephemeral game states—creating a roll-up for a game's duration and then winding it down—could revolutionize game development and player engagement by making blockchain-based games more accessible and cost-effective.

Beyond these specific examples, Lanre envisions a future where blockchain technology offers tangible, widely usable products that resonate with a broad audience. With the infrastructure maturing to support such innovations, Lanre anticipates significant strides towards making blockchain technology an integral part of everyday digital experiences.

How do you expect the ETP and ETF market to evolve in the coming years, particularly regarding companies potentially taking more risks?

Lanre closely following the developments around Bitcoin and Ether ETFs. Lanre's optimism for a Bitcoin ETF materialized slightly later than anticipated, with expectations now shifting towards an Ether ETF potentially being approved by May. This prediction is grounded in the legal analysis and consensus among top Bloomberg ETF analysts, suggesting a strong likelihood of approval given the SEC's limited grounds for denial.

The rationale behind the SEC's approval of a Bitcoin spot ETF—based on the correlation between futures and spot markets over several years—might pose a challenge for Ether due to the relatively newer and less liquid ETH futures market on the CME. However, Lanre remains convinced of the Ether ETF's approval, considering the political pressure on the SEC and its recent legal setbacks.

Regarding the expansion beyond Bitcoin and Ether ETFs in the US, Lanre is notably bearish without significant regulatory changes. The approval of Bitcoin was largely due to the established futures market, a precedent that does not apply to other cryptocurrencies. 

Given SEC Chair Gary Gensler's skepticism towards crypto and the regulatory body's current stance, further ETF approvals seem unlikely without a shift in the SEC's leadership or a major legal victory that redefines the SEC's criteria for securities.

Lanre also highlights the potential regulatory conflict between the SEC and CFTC, particularly if the SEC were to challenge Ether's non-security status, contradicting the CFTC's classification and its allowance for Ether futures trading. Such a public disagreement is rare and unlikely, suggesting a cautious approach by the SEC in this arena.

In summary, Lanre anticipates the approval of an Ether ETF in the near term but remains skeptical about the broader expansion of cryptocurrency ETFs under the current regulatory regime, pending significant legal or administrative changes.

Rapid Fire Questions

1. What's one piece of content every aspiring investment professional should read/watch?

   • Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond by Chris Burniske and Jack Tatar

2. What’s your biggest investment mistake?

   • Not being quick enough to update prices and notice switches in market regimes.

3. What’s the most underrated use case of crypto?

   • On-chain gaming.

4. What’s your most contrarian view in crypto right now?

   • We'll be waiting for a non-BTC or ETH ETF much longer than everyone thinks.

5. What’s the biggest risk that the crypto space is facing?

   • Crypto heavy reliance on gambling or kind of short-term speculative games.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.