What is Neon EVM?

What is Neon EVM?

Neon EVM combines Ethereum's robust dApp and smart contract ecosystem with Solana's fast and cost-effective network. It ensures Ethereum compatibility, allowing developers to use familiar tools like Solidity and MetaMask with minimal changes. Neon EVM's standout feature is its parallelized transaction execution, leveraging Solana's architecture to enhance throughput and lower costs.

As the leading EVM on Solana, Neon EVM expands Ethereum's reach to new users and liquidity pools while benefiting from Solana's efficient transaction handling. This synergy offers developers the advantages of Ethereum's tools and adoption, coupled with Solana's high performance and scalability.

Central to Neon EVM is the NEON token, crucial for transactions and governance within the Neon DAO. This dual function supports smooth operations and empowers the community to guide the platform's evolution, ensuring responsive and sustainable development in the blockchain space.

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How Does Neon EVM Work?

Neon EVM bridges Ethereum and Solana blockchains, maintaining Ethereum's development environment while leveraging Solana's speed and cost efficiency. Here's an overview of how it works:

1. Transaction Initiation: Developers use Ethereum tools and languages to initiate transactions for dApps or smart contracts originally made for Ethereum.
2. Neon Proxy: Transactions are sent to a Neon Proxy, which converts them into Solana's transaction format. This step includes gas estimation and preparation for execution on Solana.
3. Execution on Solana: The converted transactions are processed by the Neon EVM program on Solana. Transactions follow Ethereum rules but gain from Solana's speed and cost benefits through Sealevel parallelization. Execution involves verifying user signatures, loading EVM state from Solana, and updating the state after transactions.
4. Neon Transactions and Results: Post-execution, results are relayed back as Neon transactions, providing users with receipts and details similar to Ethereum.

The NEON token is vital for transactions and governance. Users pay gas fees in NEON tokens, and it is used for governance decisions within the Neon DAO.

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What Problem Does Neon Solve?

Neon EVM tackles high transaction costs and slower speeds on the Ethereum network. It enables Ethereum dApps to run on Solana's blockchain, leveraging Solana's lower fees and higher transaction throughput without requiring developers to rebuild their applications.

Neon EVM offers a scalable, cost-efficient platform for Ethereum developers, improving performance and expanding the user base while preserving the familiar Ethereum development environment.

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NEON Tokenomics

NEON tokenomics support its role as both 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 payments and enhancing the user experience.

Governance Token: NEON allows holders to participate in the Neon DAO, proposing and voting on protocol changes, empowering the community to shape Neon EVM's future.

Token Details:

• Type: SPL token on Solana
• Total Supply: 1 billion, divided into smaller units called Alans
• Distribution: 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: Significant portion for initial backers and contributors
• Advisors & Service Providers: Allocated for expert guidance and services
• Founders: 15% reserved for project initiators, aligning their interests with the ecosystem's success
• Ecosystem Development and Growth: Over 55% for incentivizing growth, innovation, and collaboration, including a substantial allocation to the Foundation Treasury for strategic initiatives

Lockup and vesting schedules for different stakeholders promote long-term commitment and sustainable ecosystem development, ensuring Neon EVM remains community-focused, innovative, and efficiently governed.

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Who Founded Neon?

Neon Labs, led by Director Marina Guryeva, created Neon EVM to integrate Ethereum and Solana ecosystems. Their vision and execution secured $40 million in funding to advance Neon EVM's development and adoption. This funding supports team expansion, research, core development, and enhancing Neon EVM's ability to deliver Ethereum's computational power on Solana's efficient network.

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Bottom Line

Neon EVM merges Ethereum's dApp and smart contract capabilities with Solana's speed and cost efficiency, providing a seamless integration for developers. By enabling Ethereum compatibility and leveraging Solana's architecture, it enhances transaction throughput and reduces costs. The NEON token plays a crucial role in transactions and governance, empowering the community through the Neon DAO. With strong support and funding, Neon EVM is set to advance blockchain technology, combining the strengths of both Ethereum and Solana for a scalable and efficient platform.