What is Neon EVM?
Explore Neon EVM, the bridge between Ethereum and Solana, boosting transaction speed and reducing costs with innovative parallel processing.
Summary: Neon EVM seamlessly integrates Ethereum's dApp ecosystem with Solana's high-speed network, providing a scalable and cost-effective solution for developers. It facilitates the parallel execution of transactions, ensuring enhanced throughput and reduced costs.
Governed by the NEON token for utility and community-driven decisions, Neon EVM is at the forefront of layer 1 innovation, offering Ethereum's robust tools and Solana's performance, all aimed at improving the blockchain development landscape.
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What is Neon EVM?
Neon EVM is a cutting-edge platform marrying Ethereum's extensive dApp and smart contract ecosystem with Solana's high-speed and cost-effective network, through Ethereum compatibility and seamless integration. It upholds Ethereum's established infrastructure, allowing developers to utilize familiar tools like Solidity and MetaMask, and adapt their applications with minimal changes. The hallmark of Neon EVM lies in its ability to offer parallelized execution of transactions, a feature powered by Solana's architecture, significantly enhancing transaction throughput and reducing costs.
As the premier EVM on Solana, Neon EVM not only broadens Ethereum's reach into new user bases and liquidity pools but also capitalizes on Solana's rapid and efficient transaction handling. This unique symbiosis ensures developers enjoy the best of both worlds: Ethereum's widespread adoption and robust tools, alongside Solana's superior performance and scalability.
At the heart of Neon EVM's ecosystem is the NEON token, pivotal for both transactional utility and democratic governance within the Neon DAO. This dual role facilitates smooth operations and empowers the community to steer the platform's future, ensuring Neon EVM evolves responsively and sustainably alongside the blockchain landscape.
How Does Neon EVM Work?
Neon EVM operates as a bridge between the Ethereum and Solana blockchains, retaining the familiar development environment of Ethereum while harnessing the speed and cost efficiency of Solana. Here's a simplified explanation of how it works:
- Transaction Initiation: Developers initiate Ethereum-like transactions using familiar Ethereum tools and languages. These transactions are meant for dApps or smart contracts originally developed for Ethereum.
- Neon Proxy: The initiated transactions are sent to a Neon Proxy, which acts as an intermediary. The Neon Proxy packages these Ethereum transactions into Solana's transaction format. This process involves estimating gas usage and preparing the transactions for execution on the Solana blockchain.
- Execution on Solana: The wrapped transactions are then processed by the Neon EVM program on the Solana blockchain. Here, the transactions are executed following Ethereum rules but benefit from Solana's speed and lower costs via Sealevel parallelization. The execution involves checking user signatures, loading EVM state from Solana, and updating the state post-transaction.
- Neon Transactions and Results: Post-execution, the results are relayed back as Neon transactions, providing users with receipts and details similar to what they would expect on the Ethereum network.
Throughout this process, the NEON token plays a crucial role in facilitating transactions and governance. Users pay gas fees in NEON tokens, and the token is also used for governance decisions within the Neon DAO.
What Problem Does Neon Solve?
Neon EVM addresses the challenge of high transaction costs and slower speeds on the Ethereum network by enabling Ethereum dApps to run on Solana's blockchain. This solution allows developers to leverage Solana's lower fees and higher transaction throughput without needing to completely rebuild their applications.
Essentially, Neon EVM provides a scalable, cost-efficient, and easy-to-integrate platform for Ethereum developers seeking improved performance and expanded user base, all while maintaining the familiar Ethereum development environment.
NEON Tokenomics
The NEON tokenomics are designed to support its dual function as a utility and governance token within the Neon EVM ecosystem:
- Utility Token: NEON is used for transaction fees on the Neon platform, similar to ETH in Ethereum. Users pay NEON to operators for executing transactions, streamlining the payment process and improving user experience.
- Governance Token: NEON enables holders to participate in the Neon DAO, proposing and voting on protocol changes. This empowers the community to shape Neon EVM's future.
NEON is an SPL token on Solana, with a total fixed supply of 1 billion. It's divided into smaller units called Alans and facilitates a fair transaction fee distribution between Solana Validators and the Neon DAO Treasury.
Token Allocation:
- Public Sale: 5% to ensure liquidity and active community participation.
- Early Purchasers and Contributors: Acknowledges the support of initial backers and contributors with a significant portion of tokens.
- Advisors & Service Providers: Allocated to those providing expert guidance and services.
- Founders: 15% reserved for the project initiators, aligning their interests with the ecosystem's success.
- Ecosystem Development and Growth: Over 55% is committed to incentivizing ecosystem growth, innovation, and collaboration, including a substantial allocation to the Foundation Treasury for strategic initiatives.
With lockup and vesting schedules for different stakeholders, the allocation strategy promotes long-term commitment and sustainable ecosystem development. This approach ensures Neon EVM remains community-focused, innovative, and efficiently governed.
Who Founded Neon?
Neon Labs, under the leadership of Director Marina Guryeva, spearheaded the creation of Neon EVM, contributing to the Ethereum and Solana ecosystems' synergy. Their vision and execution led to a successful $40 million fundraising to accelerate the development and adoption of Neon EVM. This funding is earmarked for expanding the Neon Labs team, boosting research, core development, and enhancing the Neon EVM's capabilities to provide Ethereum's computational power on Solana's efficient network.
Bottom Line
In conclusion, Neon EVM stands as a significant innovation, bridging Ethereum and Solana to offer a robust solution for developers facing high transaction costs and slow speeds. Its smart integration ensures developers can continue using familiar tools while benefiting from enhanced scalability and cost efficiency. With the backing of a strong community and strategic funding, Neon EVM is poised to drive forward the decentralized application space, embodying a fusion of familiar Ethereum features with Solana's performance, all governed and continually improved by the NEON token holders.
