Partnerships
Arguably the most important partnership Neo has established so far is with the Blockchain-based Services Network (BSN). The BSN was developed by the Chinese government to be a global infrastructure that can power a digital economy.
Neo is one of a small number of blockchains supported by the BSN. As part of its role, it will be working with the Chinese State Information Center, China UnionPay, and China Mobile to promote blockchain innovation and widespread adoption.
Since developers can use Neo to launch dApps, the Neo ecosystem includes a variety of projects. Here are a few examples of the types of projects Neo houses:
- Flamingo Finance, a decentralized finance (DeFi) protocol.
- DogeRift, a play-to-earn blockchain game that uses NFTs.
- GhostMarket, an NFT marketplace.
- DeepBrain Chain, a decentralized network that provides computing power to AI companies.
Neo founder Da Hongfei also founded Onchain, one of China's top blockchain companies. Onchain uses the Neo platform as the framework for its Distributed Networks Architecture, which helps businesses build private and public blockchains.
Can I make passive income with Neo?
Neo makes it easy to earn passive income. All NEO token holders receive a portion of the network's utility token, GAS. The tokens are generated each time a new block is minted. GAS tokens are rewarded automatically.
Note that if you store your NEO tokens on a cryptocurrency exchange, you may not receive these rewards. It depends on the exchange, which is why it's highly recommended that you store your cryptocurrency tokens in a blockchain wallet that you (and not the exchange) have sole control over.
You can increase the amount of GAS you earn by staking your NEO tokens. When you stake your crypto, it helps with the transaction validation process.
The Neo network splits up 80% of the GAS token rewards among those who stake their NEO tokens, compared to just 10% among NEO token holders who don't stake them. Since there's such a large difference in rewards, staking is the better option.
Unique risks
Neo's connection to China and the Chinese government could be either a benefit or a risk, depending on how you look at it. China is known for being strict on cryptocurrencies. Neo seems to have the nation's seal of approval for now, but, if that changes, it could have a significant impact on the project's growth.
Speaking of growth, Neo hasn't impressed investors in that regard, and some are complaining about a lack of marketing. The Neo team's approach has been to focus on developing the technology first, in particular the N3 upgrade. However, while Neo does that, it has been losing ground to other blockchain projects that care more about promotion.
Also worth noting is that NEO tokens are indivisible, which can make them somewhat inconvenient to use. Even an expensive crypto such as Bitcoin (BTC +7.27%) can be divided into Satoshis, which are worth one-hundred-millionth of a Bitcoin.
With Neo, this isn't possible. If you want to buy, sell, or trade it, it needs to be a whole number such as one NEO or 10 NEO. You couldn't send 0.5 NEO or 5.75 NEO. That makes it harder to use for transferring funds compared to other types of cryptocurrency.
