Governance Changes in the Neo Network
Recent modifications have occurred in the Neo blockchain. HashKey Cloud joins the committee, COZ advances to a node, and InfStones is excluded from the elected list. InfStones voters are now not generating $GAS. This article details these changes and their implications for the Neo ecosystem.
Neo Voting and Rewards Mechanics
The governance model adopted by the Neo blockchain depends on the $NEO . To incentivize participation, $NEO holders receive $GAS for voting. $GAS Rewards are distributed between elected candidates and their voters. 10% of $GAS is given to non-voters or those who vote for non-elected candidates.
From a $NEO Holder’s Perspective
The Neo blockchain committee consists of 21 members, with the top 7 responsible for proposing new blocks. $NEO holders participate in governance by voting.
Users still using Neo Legacy can’t vote and must migrate to Neo N3.
Rewards in the form of $GAS are distributed to voters whose candidates are elected. Rewards depend on the amount of voting $NEO. Voting for lower-ranked candidates yields higher $GAS per $NEO.
From a Member’s Perspective
Members in the top 7 positions are responsible for signing new blocks. COZ’s advancement implies an increased role in network responsibilities.
InfStones is no longer in the top 21, and its voters won’t receive $GAS. Neo Burger has already withdrawn its support, and other voters seeking maximized rewards are expected to follow.
Impact on the Neo Ecosystem
COZ’s Role as Consensus Node
New Council Member: HashKey Cloud
Per the official announcement, HashKey Cloud offers Web3 services ranging from infrastructure to decentralized identity and compliant products.
HashKey Cloud’s entry into the Neo network is a positive development. Their expertise in blockchain infrastructure across different chains will be valuable for Neo’s growth.
Choosing a New Candidate
When selecting a candidate, voters consider two strategies: maximizing $GAS rewards or supporting network development. Both methods are valid and depend on the voter’s goals.
For $GAS Maximizers
Key considerations include the $GAS reward ratio from staked $NEO and the value of $GAS itself. Solutions for these users include:
- Voting via Neo Burger for automatic vote distribution.
- Voting for the 21st ranked candidate yields higher $GAS per $NEO.
Most users fit in this group.
For $NEO Investors
This group, often larger investors, prioritizes long-term network growth. They should evaluate community contributions before voting. Useful resources include the Community Development portal on NDapp.
For long-term focused voters, consider these candidates:
- Linkd Academy – Enhancing Neo’s developer experience.
- COZ – A long-standing contributor to the network.
- Neo News Today (NNT) – Key in disseminating technical information.
The Neo blockchain’s governance reshuffle, particularly HashKey Cloud’s entry and COZ’s promotion, marks a pivotal phase for $NEO holders and the wider ecosystem.
Voting strategies for $NEO holders should align with their goals, be it $GAS optimization or network growth. New entrants like Linkd and HashKey Cloud and groups like COZ and NNT offer diverse voting options.