In November 2021, Solana's total value locked (TVL) reached an impressive all-time high, breaking the magnificent milestone of $10 billion. This achievement not only marks the thriving growth of the Solana ecosystem, but also heralds its huge potential in the decentralized finance (DeFi) space. However, with the unexpected collapse of the FTX exchange, Solana also suffered an unprecedented blow, with a massive withdrawal of funds, and its TVL continued to decline in the following months. By May of this year, TVL had plummeted to about $266 million, only 2% of its heyday.
This series of setbacks has left the Solana community and developers with an urgent question: how to revitalize this EVM (Ethereum Virtual Machine) heterogeneous chain and revitalize it? In the community, a spotlight has emerged – whether the EVM can be introduced to Solana to attract more developers and projects.
Against this backdrop, Neon EVM came into being. Neon Labs was founded in 2021 to deploy an EVM-compatible layer on top of Solana, which would not only take advantage of Solana's low transaction fees, but also attract a community of developers and established decentralized applications (dApps) that are already familiar with EVM. The emergence of Neon EVM has brought a glimmer of hope to Solana, indicating that it may usher in new development opportunities.
Although Neon currently has a market cap of just under $20 million and is ranked #2319 on CoinMarketCap, indicating its relatively small market cap, it is still considered an underexplored gem due to its unique technological advantages and strategic location in the Solana ecosystem.
Next, we'll step into the world of Neon EVM and take a closer look.
Neon EVM: The linker between the Ethereum and Solana technology ecosystems
In the world of blockchain, Neon Labs breathes new life into Solana with its groundbreaking Neon EVM. This platform provides a unique software environment for developers to leverage the power of the Ethereum Virtual Machine (EVM) to build and scale applications on Solana. More than just a compatibility layer, the Neon EVM is a bridge in the Solana ecosystem, connecting developers familiar with Ethereum tools and Solana's efficient liquidity.
Neon's core strength lies in its ability to integrate seamlessly. Developers can seamlessly migrate existing dApps to Solana without having to refactor their smart contracts. The Neon EVM runs dApps through a well-designed incentive system that translates complex EVM operations into transactions that the Solana network can understand and execute.
The vision of the Neon team is to combine the best of both worlds: Ethereum's proven development tools and language support, and Solana's high-performance and low-cost transactions. This vision is made possible by Neon's three building blocks: the Neon EVM, which executes EVM transactions, the Neon Proxy, which translates those transactions into Solana network operations, and the Neon DAO, which is the core of governance.
Neon EVM ensures compatibility with Ethereum, retains the developer's favorite Solidity and Vyper programming languages, and also supports critical infrastructure such as MetaMask, Hardhat, Remix, and more. Neon Proxy acts as a smart intermediary that ensures that EVM transactions can be executed efficiently on Solana. The Neon DAO is a decentralized governance framework that exists on Solana in the form of smart contracts, giving the community decision-making power over the future direction of the Neon EVM.
The emergence of Neon EVM marks an important expansion of the Solana ecosystem, laying a solid foundation for future growth and innovation.
Neon EVM technology core: Ethereum Dapps run seamlessly on Solana without modifications
In the race of blockchain technology, EVM compatibility has become a feature that many public chains are vying to deploy. NEAR has achieved this with Aurora, followed by BSC, HECO, Polygon, Fantom, Avalanche, and others. Solana participants are not far behind, and Neon EVM is their trump card in the race. But how does Neon EVM work?
Neon EVM builds a virtual execution environment on top of Solana that mimics the EVM and allows native Ethereum contracts to run on Solana without any modifications. All of this is made possible by a specific group of operators who act as facilitators of transactions on Solana. These operators receive transaction requests from dApps, which are essentially Ethereum-style transactions, and then convert them into a transaction format that Solana is able to understand and execute.
The architecture of the Neon EVM can be broken down into three key parts: first, the EVM itself, which is a complete EVM simulation environment running on Solana; The second is the Web3 broker, which is a tool that is responsible for converting Neon-formatted transactions into Solana transactions; Finally, there is the EVM Governance System, which is a complete governance framework that is responsible for managing the resources and policies of the Neon EVM.
One of the technical highlights of Neon EVM is its support for Berkeley Packet Filter (BPF) bytecode compilation, which takes full advantage of Solana's high performance and high throughput. BPF dates back to 1992 and was originally used for packet filtering, but its use in modern Unix kernels has gone far beyond its original design. On Solana, the integration of BPF makes it possible to load additional VMs, enable parallel processing of transactions, and protocol upgrades in Solana, even with hard forks, to ensure a smooth transition and update of the Neon EVM.
These technical features make Neon EVM more than just a plug-in to the Solana ecosystem, it actually brings a whole new dimension to Solana. With the Neon EVM, dApps on Ethereum can be easily migrated to Solana with little to no code changes, unlocking Solana's inherent benefits in processing speed and cost efficiency. This is not only a technological leap, but also an unprecedented level of flexibility and interoperability for the developer community.
Neon tokenomics: Early purchasers receive 16.12% of the asset but are locked for one year
After Neon EVM's technological innovation has paved its place in the Solana ecosystem, its tokenomics model is also worth paying attention to. The Neon token is more than just a medium of exchange, it plays a vital role in the entire Neon compatibility layer. When users make transactions, they need to be paid to proxy operators using Neon tokens, which in turn use SOL to pay validators on the Solana network. This design not only ensures a smooth transaction, but also provides a continuous revenue stream for the Neon project itself.
The tokenomics of Neon EVM are open and transparent, with a total issuance of 1 billion Neon tokens. In this economy, public sales account for 5% of the total supply, or 50 million pieces, and are priced at $0.1 each. This pricing strategy and allocation model is designed to balance initial liquidity with long-term development.
The distribution strategy for Neon tokens is as follows:
Early purchasers will receive 16.12% of the tokens, which will have a one-year lock-up period, after which they will be released linearly over a year to encourage the confidence and patience of early investors.
Key partners and advisors are allocated 7.02%, which shows a long-term commitment to these key supporters, whose tokens will likewise have a lock-up period of at least one year and begin to release linearly after that.
Ecosystem development accounts for 31.92%, which shows Neon's importance to the long-term prosperity of the ecosystem, and these tokens will be used to incentivize developers and other ecological participants.
The founding team will receive 15%, and this part of the token will have a one-year lock-up period, and will be released linearly in the future to ensure that the long-term interests of the team and the project are aligned.
Early contributors receive 1%, which is a reward for individuals or teams who help in the early stages of the project.
The public sale part accounts for 5%, and this part of the tokens will be unlocked on July 17, 2023 to provide initial liquidity for the market.
Ecosystem growth (treasury) accounts for 23.94%, and the use of this part of the token will be determined by the community governance proposal, which reflects Neon's commitment to decentralized governance.
Through such a tokenomics design, Neon EVM not only provides users with an efficient trading environment, but also provides a fair incentive mechanism for participants. This economic model is designed to ensure the sustainability of the Neon project, while also injecting new vitality into the future growth of the Solana ecosystem.
After the successful launch, Neon EVM is worth looking forward to in the future
With the successful launch of Neon EVM on mainnet in July this year, a new chapter has begun in the Solana ecosystem. This milestone not only marks the technological maturity of Neon EVM, but also heralds the beginning of its tokenomics model to work in the real world. The launch of the Neon EVM on mainnet brings unprecedented EVM compatibility to Solana, providing a new and efficient platform for Ethereum developers, while also opening up new possibilities for Solana users and investors.
The launch of Neon EVM's mainnet is the final validation of its technological innovation and economic model, which is a testament to the Neon team's commitment to the project's vision and deep understanding of blockchain technology. As the incentives of the Neon token economy come into play, we can expect a more diverse and active Solana ecosystem to emerge. The successful deployment of Neon EVM not only breathes new life into the Solana ecosystem, but also sets a new benchmark for interoperability and scalability in the entire blockchain world.
Looking ahead, the mainnet launch of Neon EVM is just the beginning, and it will kick off a chain reaction of innovation and development. As more developers and projects join, it's reasonable to believe that Neon EVM will continue to drive the Solana ecosystem toward a more prosperous and diverse direction.
Source: Golden Finance
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Ethereum Dapps can be migrated to the Solanag public chain without modification, and the Neon EVM outbreak is imminent?
In November 2021, Solana's total value locked (TVL) reached an impressive all-time high, breaking the magnificent milestone of $10 billion. This achievement not only marks the thriving growth of the Solana ecosystem, but also heralds its huge potential in the decentralized finance (DeFi) space. However, with the unexpected collapse of the FTX exchange, Solana also suffered an unprecedented blow, with a massive withdrawal of funds, and its TVL continued to decline in the following months. By May of this year, TVL had plummeted to about $266 million, only 2% of its heyday.
This series of setbacks has left the Solana community and developers with an urgent question: how to revitalize this EVM (Ethereum Virtual Machine) heterogeneous chain and revitalize it? In the community, a spotlight has emerged – whether the EVM can be introduced to Solana to attract more developers and projects.
Against this backdrop, Neon EVM came into being. Neon Labs was founded in 2021 to deploy an EVM-compatible layer on top of Solana, which would not only take advantage of Solana's low transaction fees, but also attract a community of developers and established decentralized applications (dApps) that are already familiar with EVM. The emergence of Neon EVM has brought a glimmer of hope to Solana, indicating that it may usher in new development opportunities.
! [VfusB6TifAvbmOUO1q1IIQspBGvEg0qm3YCKxqyI.jpeg] (https://img-cdn.gateio.im/webp-social/moments-901ff9e656-38be939785-dd1a6f-cd5cc0.webp)
Neon EVM's Banner background
Although Neon currently has a market cap of just under $20 million and is ranked #2319 on CoinMarketCap, indicating its relatively small market cap, it is still considered an underexplored gem due to its unique technological advantages and strategic location in the Solana ecosystem.
Next, we'll step into the world of Neon EVM and take a closer look.
Neon EVM: The linker between the Ethereum and Solana technology ecosystems
In the world of blockchain, Neon Labs breathes new life into Solana with its groundbreaking Neon EVM. This platform provides a unique software environment for developers to leverage the power of the Ethereum Virtual Machine (EVM) to build and scale applications on Solana. More than just a compatibility layer, the Neon EVM is a bridge in the Solana ecosystem, connecting developers familiar with Ethereum tools and Solana's efficient liquidity.
Neon's core strength lies in its ability to integrate seamlessly. Developers can seamlessly migrate existing dApps to Solana without having to refactor their smart contracts. The Neon EVM runs dApps through a well-designed incentive system that translates complex EVM operations into transactions that the Solana network can understand and execute.
The vision of the Neon team is to combine the best of both worlds: Ethereum's proven development tools and language support, and Solana's high-performance and low-cost transactions. This vision is made possible by Neon's three building blocks: the Neon EVM, which executes EVM transactions, the Neon Proxy, which translates those transactions into Solana network operations, and the Neon DAO, which is the core of governance.
Neon EVM ensures compatibility with Ethereum, retains the developer's favorite Solidity and Vyper programming languages, and also supports critical infrastructure such as MetaMask, Hardhat, Remix, and more. Neon Proxy acts as a smart intermediary that ensures that EVM transactions can be executed efficiently on Solana. The Neon DAO is a decentralized governance framework that exists on Solana in the form of smart contracts, giving the community decision-making power over the future direction of the Neon EVM.
The emergence of Neon EVM marks an important expansion of the Solana ecosystem, laying a solid foundation for future growth and innovation.
Neon EVM technology core: Ethereum Dapps run seamlessly on Solana without modifications
In the race of blockchain technology, EVM compatibility has become a feature that many public chains are vying to deploy. NEAR has achieved this with Aurora, followed by BSC, HECO, Polygon, Fantom, Avalanche, and others. Solana participants are not far behind, and Neon EVM is their trump card in the race. But how does Neon EVM work?
Neon EVM builds a virtual execution environment on top of Solana that mimics the EVM and allows native Ethereum contracts to run on Solana without any modifications. All of this is made possible by a specific group of operators who act as facilitators of transactions on Solana. These operators receive transaction requests from dApps, which are essentially Ethereum-style transactions, and then convert them into a transaction format that Solana is able to understand and execute.
The architecture of the Neon EVM can be broken down into three key parts: first, the EVM itself, which is a complete EVM simulation environment running on Solana; The second is the Web3 broker, which is a tool that is responsible for converting Neon-formatted transactions into Solana transactions; Finally, there is the EVM Governance System, which is a complete governance framework that is responsible for managing the resources and policies of the Neon EVM.
One of the technical highlights of Neon EVM is its support for Berkeley Packet Filter (BPF) bytecode compilation, which takes full advantage of Solana's high performance and high throughput. BPF dates back to 1992 and was originally used for packet filtering, but its use in modern Unix kernels has gone far beyond its original design. On Solana, the integration of BPF makes it possible to load additional VMs, enable parallel processing of transactions, and protocol upgrades in Solana, even with hard forks, to ensure a smooth transition and update of the Neon EVM.
! [CfHmIQW7B59qScFZPGiJENt3poRxBGiEblFvDGVN.png] (https://img-cdn.gateio.im/webp-social/moments-901ff9e656-3526c2e2b8-dd1a6f-cd5cc0.webp)
The payment process of the Neon EVM ecosystem
These technical features make Neon EVM more than just a plug-in to the Solana ecosystem, it actually brings a whole new dimension to Solana. With the Neon EVM, dApps on Ethereum can be easily migrated to Solana with little to no code changes, unlocking Solana's inherent benefits in processing speed and cost efficiency. This is not only a technological leap, but also an unprecedented level of flexibility and interoperability for the developer community.
Neon tokenomics: Early purchasers receive 16.12% of the asset but are locked for one year
After Neon EVM's technological innovation has paved its place in the Solana ecosystem, its tokenomics model is also worth paying attention to. The Neon token is more than just a medium of exchange, it plays a vital role in the entire Neon compatibility layer. When users make transactions, they need to be paid to proxy operators using Neon tokens, which in turn use SOL to pay validators on the Solana network. This design not only ensures a smooth transaction, but also provides a continuous revenue stream for the Neon project itself.
The tokenomics of Neon EVM are open and transparent, with a total issuance of 1 billion Neon tokens. In this economy, public sales account for 5% of the total supply, or 50 million pieces, and are priced at $0.1 each. This pricing strategy and allocation model is designed to balance initial liquidity with long-term development.
! [GnpYhgaY8xaOfNCxqashYySfY6z76WFw08AbwLEc.png] (https://img-cdn.gateio.im/webp-social/moments-901ff9e656-36384bbb07-dd1a6f-cd5cc0.webp)
The distribution model of Neon tokens
The distribution strategy for Neon tokens is as follows:
Early purchasers will receive 16.12% of the tokens, which will have a one-year lock-up period, after which they will be released linearly over a year to encourage the confidence and patience of early investors.
Key partners and advisors are allocated 7.02%, which shows a long-term commitment to these key supporters, whose tokens will likewise have a lock-up period of at least one year and begin to release linearly after that.
Ecosystem development accounts for 31.92%, which shows Neon's importance to the long-term prosperity of the ecosystem, and these tokens will be used to incentivize developers and other ecological participants.
The founding team will receive 15%, and this part of the token will have a one-year lock-up period, and will be released linearly in the future to ensure that the long-term interests of the team and the project are aligned.
Early contributors receive 1%, which is a reward for individuals or teams who help in the early stages of the project.
The public sale part accounts for 5%, and this part of the tokens will be unlocked on July 17, 2023 to provide initial liquidity for the market.
Ecosystem growth (treasury) accounts for 23.94%, and the use of this part of the token will be determined by the community governance proposal, which reflects Neon's commitment to decentralized governance.
Through such a tokenomics design, Neon EVM not only provides users with an efficient trading environment, but also provides a fair incentive mechanism for participants. This economic model is designed to ensure the sustainability of the Neon project, while also injecting new vitality into the future growth of the Solana ecosystem.
After the successful launch, Neon EVM is worth looking forward to in the future
With the successful launch of Neon EVM on mainnet in July this year, a new chapter has begun in the Solana ecosystem. This milestone not only marks the technological maturity of Neon EVM, but also heralds the beginning of its tokenomics model to work in the real world. The launch of the Neon EVM on mainnet brings unprecedented EVM compatibility to Solana, providing a new and efficient platform for Ethereum developers, while also opening up new possibilities for Solana users and investors.
! [KUqpdDoKcd8tFIgS5d56HgMayzx3Md2ycJBpF2wZ.png] (https://img-cdn.gateio.im/webp-social/moments-901ff9e656-74875e2c3b-dd1a6f-cd5cc0.webp)
Neon EVM's ecological development roadmap
The launch of Neon EVM's mainnet is the final validation of its technological innovation and economic model, which is a testament to the Neon team's commitment to the project's vision and deep understanding of blockchain technology. As the incentives of the Neon token economy come into play, we can expect a more diverse and active Solana ecosystem to emerge. The successful deployment of Neon EVM not only breathes new life into the Solana ecosystem, but also sets a new benchmark for interoperability and scalability in the entire blockchain world.
Looking ahead, the mainnet launch of Neon EVM is just the beginning, and it will kick off a chain reaction of innovation and development. As more developers and projects join, it's reasonable to believe that Neon EVM will continue to drive the Solana ecosystem toward a more prosperous and diverse direction.
Source: Golden Finance