According to TechFlow, Cosmos Hub announced that Hydro will be officially launched in October 2024, bringing additional benefits to ATOM holders. Users can receive these rewards without unstaking, and Hydro's "contribution rewards" will be issued in addition to the existing annualized rate of return on stakes.

The Hydro system operation process includes: converting the staked ATOM into LSM shares, transferring the LSM shares to Neutron and locking them in Hydro to obtain voting rights. The user's reward share depends on their voting weight in the proposal. Each round of voting allows users to support one project in each group, and they can change their votes at any time before the end of the round while keeping the original staking rewards unchanged.