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 Neo Burger has already withdrawn its support, and other voters seeking maximized rewards are expected to follow.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

COZ, a major contributor to the Neo ecosystem, has been a major player in developing and maintaining various Neo applications. Their recent works include CPM and Item Systems (NFI).

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.

Recommended Candidates

For long-term focused voters, consider these candidates:

Concluding Remarks

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.

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