Neon EVM is a synergetic solution for anyone looking to scale Ethereum dApps on Solana in a developer-friendly manner and tap into Solana's vibrant ecosystem.
The solution allows any Ethereum application to be run on Solana without any changes to its codebase, including Uniswap, SushiSwap, 0x, and MakerDAO. All key Ethereum dApp tools can also work on Solana, including Solidity, MetaMask, Remix, and Truffle.
Neon EVM is a smart contract on Solana acting as the Ethereum Virtual Machine. It is compiled into Berkeley Packet Filter bytecode, a format that can be executed on Solana. This allows Neon EVM to receive Solana transactions that contain wrapped Ethereum-like transactions and process them on Solana according to Ethereum rules. Get more details here.
Neon EVM facilitates the usage of Ethereum tooling by dApp developers to scale and access liquidity on Solana. Neon EVM offers Ethereum ecosystem dApp developers increased throughput and swift block time on Solana, with low gas prices and no need for changing code – anyone can run Ethereum contracts on Solana with Neon EVM.
The Neon EVM program is a smart contract on the Solana blockchain. This allows Neon EVM to receive Ethereum-like transactions and process them on Solana according to Ethereum rules. Ethereum transactions going through Neon EVM, called Neon Transactions, are used as inputs for the targeted Neon clients.
The NEON token is used to pay the gas fees required for transaction execution Neon Proxy is an essential tool for packaging a Neon transaction into a Solana transaction. It improves the user experience for operators in the Neon ecosystem, and it allows Ethereum dApps to be ported to Neon with virtually no code or configuration changes, as all the “translating” is handled by the proxy.
Neon operators run Neon Proxy servers, which helps facilitate seamless execution of Ethereum-like transactions on Solana. This allows Ethereum dApps to be ported to Neon with no code change.
The NEON token is the native token of the Neon EVM. It is used as a:
- Utility token: the payment method for user transactions (transfers, dApps deployment, interaction with dApps, etc.) on the Neon platform, similar to how ETH is used on Ethereum; and
- Governance token: representing a vote in the Neon DAO for decentralized community governance.
Utility
The Neon token facilitates all payments for Neon EVM transactions, including the fee paid to Neon operators.
When a Neon user (i.e., an end-user of a dApp built on the Neon EVM) wants to execute a transaction, they send a request to a Neon operator. Operators have two main responsibilities:
- To wrap the Neon transaction into a Solana transaction, so that it may be executed iteratively on a Solana cluster.
- To pay for the execution of every iteration of the Neon transaction.
The goal of this abstraction is to improve the user experience by simplifying the payment process for Neon transactions.
For every iteration of a Neon transaction, the Neon operator will pay SOL tokens to the Solana Validator and to the Neon DAO Treasury. This latter payment is known as the Neon EVM platform fee.
In return, the Neon user pays the Neon operator in NEON tokens to cover the cost of the Solana validation fee, the Neon EVM platform fee, and the operator’s commission.
Governance
NEON holders are able to propose changes to the Neon protocol and vote on proposals that affects Neon protocol, using their NEON tokens as votes.
