Neo N3 Mainnet Launch and Migration Plan

This article is sourced from Neo.

The time has come. At 17:00:00 on August 2, 2021, the Neo N3 mainnet officially launched.

Since Neo founder Da Hongfei first announced the intention for Neo 3.0 in July 2018, we have undergone a long journey. The entire world and the cryptocurrency market have changed rapidly, with trends rising and falling repeatedly, and the blockchain industry has matured.

Nevertheless, our goal has remained unchanged: to build the most developer-friendly blockchain platform.

In accomplishing this daunting task, we have received tremendous support from around the globe. Whether from COZ in the United States and Europe, NeoResearch in Brazil, AxLabs in Switzerland, Neo SPCC in Russia, Red4Sec in Spain, NeoTracker and NGD Enterprise in Seattle, or the NEXT community in China, all Neo community developers and members have worked hard on the road to N3, contributing to the establishment of a truly global blockchain platform.

We are very grateful for everyone's efforts and proud of the milestones we have achieved together.

We are confident in N3. Neo N3 not only brings a wealth of new features, including native decentralized storage and oracles, but also fundamentally reconstructs many frameworks and mechanisms of Neo Legacy, including a new governance system and economic model, and a restructured underlying architecture. These new features, combined with multi-language support and top-notch development tools, make Neo the optimal choice for blockchain developers.

N3 brings us one step closer to the vision of a smart economy.

We have prepared a series of promotional activities to celebrate the launch of the N3 mainnet, including NFT airdrops, testnet activities, and content creation programs. For more information, please stay tuned to Neo's official channels in the coming weeks.

In addition, this article will address some important questions regarding the migration of NEO and GAS from Neo Legacy to Neo N3, such as dates and incentives. For more information on the full launch plan, please refer to this article.

Token Migration

Token migration is an important milestone in the launch phase of Neo N3. Generally, users need to create a new wallet address on Neo N3 and send their Neo Legacy tokens to the migration contract. Subsequently, the contract will release Neo N3 tokens to your newly created wallet address at a 1:1 ratio, bridging the two chains through Poly Network.

There are three different migration channels available: migrating through dAPI on the Neo.org website, in-wallet migration, or migration through exchanges.

For specific dates, supported wallets and exchanges, frequently asked questions, and other related information, please refer to: neo.org/migration. This page contains all the latest and most comprehensive migration details. Please note: the current page will be updated before August 9 (Monday).

NEO or GAS holders should pay attention to the following two important migration dates:

• August 9 ------ "Early Bird" migration starts

• September 1 ------ Large-scale migration starts

August 9 ------ "Early Bird" Migration

Token holders can start migrating NEO and GAS from Neo Legacy to Neo N3 as early as August 9. Please note that participating in the "Early Bird" migration has its pros and cons:

The main advantage of participating in the "Early Bird" migration is that you can become one of the first voters in Neo's new governance system.

According to N3's new economic model, most GAS will be allocated to NEO holders who vote for Neo Council members. Since fewer NEO will be used for voting during the early bird phase, the amount of GAS allocated to each voter may be higher than the level after large-scale migration.

However, during this time, external services (such as wallets and exchanges) may have limited support for N3. This means you may not be able to migrate using your usual wallet or even store the N3 tokens after migration. Additionally, you cannot migrate back to Neo Legacy, meaning you will not be able to trade the migrated NEO and GAS until exchanges support N3.

Moreover, for the remainder of August, the N3 mainnet will still be in the "setup" phase. Although the current architecture is deemed stable and open for use, we will continue to add various infrastructure throughout the month. It is inferred that this process will not be interrupted and does not involve any financial risks, but it cannot be ruled out that some functions or support from ecosystem and service providers may be delayed due to unforeseen circumstances.

Token holders should weigh the pros and cons based on the above explanation.

September 1 ------ Large-scale Migration

After the mainnet setup phase ends, we will initiate the large-scale migration of NEO and GAS. We will launch a complete set of incentive programs for the large-scale migration to encourage users to migrate from Neo Legacy. Users will be able to migrate through multiple channels, including the Neo official website, designated wallets, and exchanges.

However, while we are working hard to ensure that more external channels support the Neo N3 mainnet as soon as possible, we cannot fully control the progress of external organizations. We will continue to do everything possible to ensure the rapid adoption and application of N3. However, ultimately, widespread support may not be achieved simultaneously.

Token Migration Incentive Program

The token migration incentive program will run from September 1 to October 31, during which users who complete the migration can receive NEO rewards. The rewards will start at 1% and decrease over a period of 8 weeks.

Specifically:

• From September 1, 2021, to September 14, 2021, complete NEO migration: reward of 1% of the migrated amount in NEO;

• From September 15, 2021, to September 30, 2021, complete NEO migration: reward of 0.75% of the migrated amount in NEO;

• From October 1, 2021, to October 31, 2021, complete NEO migration: reward of 0.5% of the migrated amount in NEO;

Please note: Since NEO is indivisible, the minimum migration incentive a user can receive is 1 NEO. Therefore, users must migrate at least the following amounts of NEO to receive rewards:

• For a reward of 1% of the migrated amount in NEO - migrate 100 NEO to receive 1 NEO incentive;

• For a reward of 0.75% of the migrated amount in NEO - migrate 134 NEO to receive 1 NEO incentive;

• For a reward of 0.5% of the migrated amount in NEO - migrate 200 NEO to receive 1 NEO incentive;

If you migrate less than the above amounts of NEO, you will not receive any incentives. For example, if you migrate 199 NEO in the first week, you will only receive 1 NEO incentive.

Centralized exchanges will have their own announced incentive programs, which may offer divisible migration rewards; please refer to the exchange's incentive announcements for details.

Incentives will be distributed within three days after migration is completed. Currently, there is no incentive program for GAS migration.

Migration Fees

When users migrate 10 or more NEO or 20 or more GAS, the migration fees will be covered by the Neo Foundation. This payment process will be handled automatically during the transaction, and users do not need to take any action.

When users migrate less than 10 NEO or 20 GAS, a fee of 1 GAS will be charged. Since all transactions on Neo N3 currently incur fees, allowing users to migrate a small number of tokens for free would create a loophole, as users could potentially exploit the Neo Foundation's GAS through spam transactions.

The Neo Foundation has preset a total budget of 200,000 GAS to subsidize users' migration fees—generally, this budget is sufficient. If, in some cases, the budget runs out, then even if the number of tokens migrated exceeds the free threshold, later migrants may need to pay a certain fee.

Regardless of whether users choose to participate in the "Early Bird" migration or the large-scale migration, a fee of 1 GAS will be required, paid in GAS from Neo Legacy during the migration process.

Neo Foundation Token Migration

To ensure the smooth launch of the Neo N3 network, the NEO and GAS currently held by the Neo Foundation will not be migrated through Poly Network but will be directly allocated to the consensus multi-signature address on Neo N3.

NEO and GAS not held by the Neo Foundation will be allocated to the cross-chain proxy contract on Neo N3. Neo Legacy token holders will be able to unlock their Neo N3 tokens from this contract through token migration.

Gas Generation Stops at Block Height 8,000,000 for Neo Legacy

After the launch of Neo N3, Neo Legacy will enter a long-term support phase and continue to operate for at least one year. During this period, the migration channels for Neo N3 will remain open.

However, due to the slightly different GAS generation mechanisms between Neo Legacy and Neo N3, there may be some confusion for ecosystem and service providers, such as exchanges that need to calculate circulating supply.

To address this issue, Neo Legacy will stop generating GAS at block height 8,000,000. It is currently estimated to occur around mid-September.

At this point, the circulating amount of GAS on Neo Legacy will be exactly 52,000,000. The initial supply of GAS on Neo N3 will be minted based on this amount and sent to the consensus multi-signature address on Neo N3.

As mentioned in the previous section, tokens not belonging to the Neo Foundation will be allocated to the cross-chain proxy contract on N3.

Ongoing Updates

The migration phase is about to begin, and we encourage all users to stay informed through Neo's official channels. For the latest news on available migration channels, specific dates, supported wallets and exchanges, frequently asked questions, and more, please refer to: neo.org/migration. This page contains all the latest and most comprehensive migration details. Please note: the current page will be updated before August 9 (Monday).

NEP-5 tokens on Neo Legacy will require the contract owner to first create a new NEP-17 contract on Neo N3 during migration. We welcome all project teams to contact NGD's digital asset department for migration support. Token holders should inquire with project teams about migration plans and timelines.