Neon EVM launches public offering, can the compatible layer save the declining Solana?
Solana TVL is less than 2% of its peak.Author: Loopy Lu, Odaily Planet Daily
Recently, CoinList announced that it will launch the sale of the Solana EVM-compatible solution Neon EVM token NEON at 17:00 UTC on June 8 (1:00 AM Beijing time on June 9), with a total sales volume of 50,000,000 NEON, accounting for 5% of the total circulation, priced at $0.1. Registration for this community sale is now open, with a deadline of 12:00 UTC on June 5.
In the current context of a significant contraction in the Solana ecosystem, the emergence of Neon EVM brings new opportunities for Solana. How is this upcoming public offering project developing? Below, Odaily Planet Daily provides a quick overview of Neon EVM.
Neon EVM Aims to Combine the Advantages of Ethereum and Solana
In November 2021, Solana's TVL reached an all-time high, surpassing $10 billion.
With the collapse of FTX, Solana also fell into a slump, with funds fleeing. Since the collapse of FTX, TVL has been in a prolonged decline. Currently, TVL has dropped to about $266 million, only about 2% of its ATH.
As Solana distances itself from the impact of FTX, how to revive this EVM heterogeneous chain has become a focus for the Solana community and developers. Whether it can introduce EVM has also become a matter of great concern for the Solana community.
Neon is one of the solutions to this problem. In 2021, Neon Labs was established. The project aims to deploy an EVM-compatible layer on Solana to leverage Solana's low fee advantages and introduce a mature EVM developer ecosystem and established dApps.
Neon allows anyone to run Ethereum smart contracts on Solana without needing to reconfigure the smart contracts to deploy dApps. The project has designed a Neon EVM with an incentive mechanism, which runs dApps and packages them into Solana transactions, replacing the need for users to execute and complete transactions on Solana.
The Neon team believes that Neon can retain the advantages from both Ethereum and Solana.
The advantages from Ethereum include: the ability to use developer-friendly languages like Solidity or Vyper; access to infrastructure such as MetaMask, Hardhat, and Remix; compatibility with Ethereum RPC API; support for Ethereum accounts, signatures, token standards, and more.
The advantages from Solana include: high concurrent execution capability; gas fees as low as 0.000015 SOL per transaction; and a throughput of up to 5000 TPS, among others.
To achieve these functionalities, Neon consists of three parts: Neon EVM, Neon Proxy, and Neon DAO.
Neon EVM is used to execute and process EVM transactions. Neon Proxy is responsible for packaging Neon transactions into a Solana transaction and executing it on Solana. Neon DAO includes a series of smart contracts deployed on Solana, which also serves as the governance body of Neon, providing a governance layer to control the functions of Neon EVM, allowing 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 the gas token. The operational flow is that users pay transaction fees to the proxy operator using NEON, which then uses SOL to pay fees to Solana validators from the Neon treasury. Therefore, a portion of the user gas will enter Neon’s treasury, which will also be a source of future revenue for Neon.
The token economics announced for Neon EVM shows that the total supply of NEON tokens is 1 billion. The total sales volume for this public offering is 50,000,000 tokens, accounting for 5% of the total supply, with each priced at $0.1.
The NEON token distribution model is as follows:
- Early Buyers: 16.12%. 1-year lock-up period, with linear release over the following year.
- Major Partners and Advisors: 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-up, then 1-year linear release.
- Early Contributors: 1%. Minimum 1-year lock-up, followed by 1-year linear authorization.
- Public Sale: 5%. Fully unlocked on July 17, 2023.
- Ecosystem Growth (Treasury): 23.94%. Determined by governance proposals.
The Neon EVM roadmap shows that the project has now progressed to the mainnet phase, with deployment of the mainnet and some early dApps planned for this quarter. In the next quarter, key DeFi protocols will be deployed, and a funding program will be initiated to promote the development of dApps within the ecosystem.
As the most vibrant ecosystem in crypto development, Ethereum provides numerous tools for dApp developers and users in terms of tools and infrastructure. With the help of Neon EVM, dApp developers can easily enter Solana, and in the context of Solana's ongoing contraction, this initiative may be crucial for the Solana community.
