Why did NEO launch 2 new token on their network – CNEO and CGAS?

The developers of NEO have launched two new tokens on the market. They are designed to enable transactions using the Smart Contracts protocol. More and more dApps work on the platform of NEO and the big growth led the developers to their decision to bring out the tokens CNEO and CGAS. This should solve liquidity problems in the NEO ecosystem and enable Smart Contracts to transfer values directly. Here you will find all information about the new tokens.

NEO

Why do we need new NEO-Coins?

The tokens with the names CNEO and CGAS are compatible with the protocol NEP-5 and should make Smart-Contracts even more useful for users, the C in the name therefore stands for Contract. With the new coins, the functionality of the Smart-Contracts will be significantly improved, as direct payments via the Smart-Contract will be possible. The use of these digital contracts on the NEO platform is increasing and at the same time more and more dApps are appearing on the NEO system. In the last 9 months the number of applications has more than doubled. Although there are enough tokens that work with Smart-Contracts, they are always limited to a few dApps. For example, many of these applications have their own tokens with which users can pay for goods or services, but there are no tokens for smart contracts that are accepted by the entire community.


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A single currency

The advantages of a shared crypto currency are easy to explain. Every project on the NEO platform must use NEO and GAS to pay for transaction fees and the operating system. The CNEO and CGAS tokens are thus a proxy for these crypto currencies and guarantee liquidity in NEO’s eco-system. The two new tokens are matched 1:1 with NEO and GAS to enable them to act as deputies.

Liquidity is fundamental

Platforms need enough liquidity to function. Without the ability to perform transactions to other networks, dApps are extremely limited. That’s why there must be enough resources available to make the whole system operational. With CNEO and CGAS this is now guaranteed. NGD, the developers behind NEO, have already announced that the code behind their Smart Contracts will soon undergo an update. After that NEO and GAS will be compatible. So it seems that CNEO and CGAS are only a temporary solution. The Chinese company behind NEO now also wants to expand to Europe. This also explains why the developers want to solve the liquidity problem as quickly as possible. The expansion is intended to stimulate trade with NEO and promote new projects on the NEO network.

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Sarah Wurfel
Sarah Wurfel

Sarah Wurfel works as a social media editor for CaptainAltcoin and specializes in the production of videos and video reports. She studied media and communication informatics. Sarah has been a big fan of the revolutionary potential of crypto currencies for years and accordingly also concentrated on the areas of IT security and cryptography in her studies.

1 Comment
  1. There are multiple NEP-10 incompatibility bugs in the NEO-NGD code base:
    https://github.com/neo-ngd/CNEO-Contract/issues/3
    https://github.com/neo-ngd/CGAS-Contract/issues/5
    @NEO_Blockchain Were these SCs code reviewed? Were they tested against the standard? https://github.com/neo-project/proposals/blob/master/nep-10.mediawiki

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