Today, we officially announce the launch of Neo X TestNet’s Beta version. This iteration incorporates a multitude of features, notably multi-node governance and a bridge linking back to Neo N3 TestNet. Further details are provided below.

Early Stage of Multi-Node Governance in Neo X

Leveraging the dBFT consensus mechanism, Neo X employs a multi-node governance system. Seven consensus nodes collaboratively process transactions on-chain and participate in voting to determine parameters on the Neo X blockchain, such as blacklisted addresses and minimum required GAS tip.

In this iteration of the Neo X TestNet, we introduce the process of becoming a candidate node, the election process for candidate nodes to become consensus nodes, and the distribution of GAS token rewards in these processes. We will elaborate on these aspects below.

The decision-making process for consensus nodes to manage on-chain parameters through voting will be incorporated in future versions or updates. A comprehensive document detailing the complete Neo X governance system will be provided later.

How to Become a Candidate Node on Neo X?

To qualify as a candidate node on Neo X, the applicant should adhere to the following criteria:

Hardware Requirements: The applicant’s infrastructure must meet the specified hardware requirements for Neo X nodes. This includes ensuring compliance with machine maintenance standards and the establishment of a robust technical setup.
Institutional Recognition: The applicant should represent an established organization or institution recognized within the market ecosystem.
Suitable applicants can proceed with the registration process by staking 1,000 GAS tokens through the Neo X governance interface. This deposit serves as a commitment to participation in the governance process.

Upon a normal node exit, the staked GAS tokens will be refunded to the applicant. A tentative locking period of approximately two weeks (equivalent to two Epochs, 120,960 blocks) is enforced to ensure the stability of the governance ecosystem.

How to Become a Voter on Neo X?

All GAS token holders are eligible to vote on Neo X.

The Consensus Node Election Process

Each election period, equivalent to an Epoch, spans approximately one week. From all candidate nodes, a total of seven nodes are elected as consensus nodes.

Any individual possessing GAS tokens on Neo X can participate in the election process by voting for their preferred consensus nodes. Votes are cast by staking any amount of GAS tokens (no less than 1 GAS) for only one candidate. The quantity of GAS tokens staked determines the voting power and influence in the reward amount this voter will receive if the candidate is elected.

Once the voting period concludes, the result will be settled immediately.

Rewards and Penalties for Nodes

All transaction fees accrued during each Epoch will be evenly split among the seven consensus nodes hosting the period.

Additionally, rewards obtained by the consensus nodes are distributed between the nodes themselves and the voters who have supported them. The distribution ratio (for instance, 50%) is determined at node registration as a candidate and remains fixed until its node exits.

Furthermore, the portion of rewards allocated to the voters is distributed based on their voting weight, which is determined by the amount of GAS tokens they have staked for voting.

voterReward=(totalNetworkGasTip/7)*distributionRatio*(voteAmount/totalVote)

The penalties for non-performing consensus nodes are yet to be determined. Wrongdoings may include but are not limited to, being unable to meet dBFT block production conditions or complete the Anti-MEV decryption key distribution. Penalties may include, but are not limited to, being prohibited from becoming a block-producing or witness node for a certain period, or the deduction of deposits upon node exit. Additionally, they may be prohibited from becoming a candidate node again. These measures will be specified in the Neo X governance contract in the future.

In the early stages of multi-node governance on Neo X, we anticipate a potential shortage of candidate nodes on the Neo X TestNet. To ensure network operation, we have designated seven standby consensus nodes to operate during this kick-off phase. Once there are at least seven qualified candidate nodes and the total voted GAS token number exceeds 3 million within one Epoch, the seven standby consensus nodes will be replaced by the seven elected nodes at the conclusion of the Epoch. This transition marks the beginning of full decentralized governance.

If either the number of candidate nodes or the voted GAS token drops below the criteria specified above, or if the result of the governance vote is invalid, the seven standby nodes will temporarily take over to maintain governance stability and network safety.

Bridge Between Neo X TestNet and Neo N3 TestNet

We are pleased to announce another significant feature: interoperability enhancements in the Beta Version of the Neo X TestNet. In this version of the native bridge, we rolled out support for bidirectional token transfers between Neo X (EVM) and Neo N3 (NeoVM). This update extends the functionality introduced in the Alpha Version and includes the following key features:

Bidirectional Bridging of Assets: Seamless movement of $GAS between networks, improving liquidity and flexibility.
Enhanced Stability and Security: Upgrades to bridge validators and relayers, along with the introduction of a new role management model to fortify security measures in the bridge smart contracts. For example, the “Security Guard” role can pause bridge operations as needed, while the “Governor” role is empowered to resume operations, as well as propose and update bridge parameters.
Bridge Upgradability: Consensus nodes on the Neo X chain can now propose and implement bridge upgrades, ensuring that the bridge evolves in alignment with the community’s needs.
Token Support: We have laid the groundwork to include NEP-17 and ERC-20 tokens, such as NEO token, in future versions of the bridge.
The native bridge is a key interoperability component of the Neo ecosystem, facilitating the dynamic interplay between the Neo X and Neo N3 chains. Since the GAS token, which is exclusively generated on Neo N3, is extensively utilized on Neo X, this bridging capability is essential for maintaining robust economic and operational continuity across the platforms.

Join the Early-Access Group to Test Neo X

As in the previous version launches, seasoned developers are invited to join our Early-Access Group to test the new features. It is a group in Neo’s Discord community, exclusively for early testers of the Neo X TestNet, for close communication and feedback gathering.

If you are an experienced developer eager to explore the Neo X TestNet, we invite you to apply for early access opportunities here.

In the Neo X Beta TestNet, developers can test the governance system, vote or be voted, exercise rights in the multi-node consensus mechanism, and use the native bridge between Neo X TestNet and Neo N3 TestNet.

Our excitement is growing as we are getting closer to the MainNet launch of Neo X. Many efforts are being spent on finishing the multi-node governance mechanism and developing user-friendly interfaces. We aim to present you with a comprehensive and secure Neo X MainNet launch experience in a not-too-distant future.