Neon EVM opens public offering, can the compatibility layer save the declining Solana?

Solana TVL less than 2% of peak.

撰文：Loopy Lu

Recently, CoinList announced that it will launch the sale of Neon EVM token NEON, the Solana EVM compatible solution, at 17:00 UTC on June 8 (1:00 on June 9, Beijing time). The total sales volume is 50,000,000 NEON, accounting for the total circulation 5% at a price of $0.1. The community sale is now open for registration, and the deadline for registration is 12:00 UTC on June 5.

At the moment when Solana's ecological volume is shrinking sharply, the emergence of Neon EVM brings new opportunities for Solana. How is the development of this upcoming public offering project? Below, Odaily Planet Daily will give you a quick overview of Neon EVM.

Neon EVM intends to combine the advantages of Ethereum and Solana

In November 2021, SolanaTVL will reach the highest peak in history, breaking through 10 billion US dollars.

With the collapse of FTX, Solana also failed to recover, and funds were withdrawn. Since the collapse of FTX, TVL has gone through a long period of continuous decline. Currently, TVL has fallen to about $266 million, which is only about 2% of ATH.

As Solana breaks away from the influence of FTX, how to revive this EVM heterogeneous chain has become a concern of the Solana community and Solana developers. Whether EVM can be introduced into Solana has also become a concern of the Solana community.

Neon is one of the solutions to this problem. In 2021, Neonlabs will be established. The project is committed to deploying an EVM compatibility layer on Solana to take advantage of Solana's low fees and introduce a mature EVM developer ecosystem and mature dApps.

Neon allows anyone to run Ethereum smart contracts on Solana and deploy dApps without reconfiguring the smart contracts. The project designed a NeonEVM with an incentive mechanism, the EVM runs dApps, and encapsulates them into Solana transactions, and executes and completes transactions on Solana instead of users.

The Neon team believes that Neon can retain the advantages of both Ethereum and Solana.

The advantages from Ethereum are: you can use the Solidity or Vyper language that developers are more familiar with; you can use MetaMask, Hardhat, Remix and other infrastructure; the compatibility of Ethereum RPCAPI; support for Ethereum accounts, signatures, token standards, etc. .

The advantages from Solana lie in its high concurrent execution capabilities; gas fees as low as 0.000015 SOL for each transfer; up to 5000 tps and so on.

In order to realize these functions, Neon consists of three parts: NeonEVM, NeonProxy, and NeonDAO.

NeonEVM is used to execute and process EVM transactions. NeonProxy is responsible for packaging Neon transactions into a Solana transaction and executing it on Solana. NeonDAO includes a series of smart contracts deployed on Solana, which is also the governance body of Neon, providing a governance layer to control the functions of NeonEVM, enabling the community to propose and vote on the operation and development of Neon.

NEON Token Economics

The Neon compatibility layer uses the project's native token NEON as a gas token. Its operation process is that the user uses NEON to pay the transaction fee to the agent operation, and then the agent operation uses SOL to pay the fee to the Neon treasury of the Solana validator. Therefore, part of the user gas will enter Neon’s treasury, which is also Neon’s future source of income.

Neon EVM announced token economics, showing that the total number of NEON tokens is 1 billion. The total sales volume of this public offering is 50,000,000 pieces, accounting for 5% of the total, and the price of each piece is 0.1 US dollars.

Its NEON token distribution model is as follows:

• Early buyers: 16.12%. 1-year lock-up period, and linear release over the subsequent 1-year period.
• Main partners and consultants: 7.02%. Minimum 1 year lock-up and 1 year linear release.
• Ecosystem development: 31.92%. Minimum 1-year lock-up, followed by 1-year linear release.
• Founders: 15.00%. 1 year lock, then 1 year linear release.
• Early contributors: 1%. Minimum 1-year lock-in, followed by 1-year linear licensing.
• Public sale: 5%. All will be unlocked on July 17, 2023.
• Ecosystem Growth (Treasury): 23.94%. Determined by the governance proposal.

The Neon EVM roadmap shows that the current project has progressed to the main network stage, and the main network and some early dApps will be deployed in this quarter. In the next quarter, key DeFi protocols will be deployed and funding programs will be launched to promote the development of dApps within the ecosystem.

As the most developed ecosystem in the encryption ecosystem, Ethereum provides many tools for dApp developers and users in terms of tools and infrastructure. With NeonEVM, dApp developers can easily enter Solana, which may be crucial to the Solana community at a time when Solana is shrinking.