- Summary:
- Binance Staking has leveraged its Neo token holdings to vote itself into the Neo Council. We discuss the changes it brings.
Neo, a community-driven blockchain platform, has announced that Binance Staking has officially become a member of its Council. The decision makes Binance the 21st member of the council, whose responsibility is to maintain the health and diversity of the Neo network. NEO coins were limited to Binance before Binance Staking became a member of the Neo Council. These tokens did not take part in the governance of the N3 network. However, Binance Staking has voted itself into the Neo Council using tokens staked on the platform.
Regarding NEO staking, the annual percentage yield (APY) ranges from 5-13%, depending on the length of tokens lock-up period. The smallest amount of NEO that may be staked is 0.01 – 0.1.
Why it matters
To help govern the Neo Blockchain, NEO holders can cast votes for their favourite candidates for the Neo Council. The governance and maintenance of Neo N3 blockchain is through constant adjustment of network parameters. By doing that, it is able to fulfil the needs of both the community and the market. Also, there must be an agreement from at least half of the council members before altering any blockchain settings via an on-chain transaction.
As a result of Binance and Neo’s symbiotic connection, Neo expects cross-chain transactions to become more widespread, allowing NEO tokens to become more valuable. A few NEO coins existed primarily on Binance prior to Binance Staking becoming a member of the Neo Council. They have been “sleeping” on their GAS, which is distributed to NEO token holders for each block created.
Da Hongfei, the founder of Neo, stated, “Binance Staking’s new membership in the Neo Council is expected to bring new diversity to the Neo community and more cross-platform user engagement to both parties.”
What’s in it for Binance Staking members?
As members of the Neo Council, Binance NEO holders become eligible for GAS incentives and control over N3’s on-chain parameters. This will improve the overall security of the blockchain. Also, Binance Staking will receive an additional 10% of the 5 GAS tokens generated per block. The blockchain gets more than 5,500 new blocks every day, which translates to over 2 million blocks per year. Since Binance Staking has joined Neo Council, it will get an additional 47,000+ GAS tokens per year as compensation.