Neo N3 governance dApp NeoBurger has published an announcement introducing its new voting tool and NEO token wrapper to the Neo community. Alongside the announcement, which documents the goals and basic implementation details of the dApp, the team launched its project website, providing a frontend for Neo N3 users to begin earning through NeoBurger.
Formed by a mixture of Neo researchers and community developers, the NeoBurger project seeks to compensate for the usability issues of indivisible NEO in applications such as DeFi, while also providing an avenue for maximized GAS rewards for holders.
Internal operations
Similar to nNEO, the wrapped NEO token used on Neo Legacy, NeoBurger also mints its own wrapped NEO token. bNEO, or burgerNeo, is divisible to 8 decimal places, making it easier to integrate with exchanges, contracts, and allowing it to be used to make more granular payments. Unlike nNEO however, the bNEO contract doesn’t take sole ownership of GAS—it maintains a record of bNEO user balances and the proportion of GAS to distribute to each.
NeoBurger earns the majority of its GAS by voting in the Neo N3 governance mechanism. NEO pooled in the NeoBurger contract is automatically managed using different voting strategies. NEO is distributed between a limited number of “agents,” each of which can cast a vote. By using multiple agents as separate wallets, NeoBurger can get around the limitation of only being able to vote for one candidate at a time.
Constant management of votes between the agents allows the NeoBurger platform to maximize the GAS received from the vote reward distribution. The majority of these rewards are passed on to bNEO holders, although some fees do also apply to certain actions. As more NEO is pooled in NeoBurger, the platform can employ further strategies, for example to use its increased vote weight to help elect new nodes to the council.
The long-term intention for NeoBurger is to evolve into a DAO model. The DAO would replace the NeoBurger owner as the controlling party of the system of smart contracts, allowing the central strategist to also be replaced with a smart contract. By distributing the controlling stake in the DAO to users who actively hold bNEO, the influence on N3 governance of NeoBurger can be aligned with the desires of the users who own the NEO pooled with the service.
Usage and fees
Users can use NeoBurger by connecting a supported wallet on the provided frontend and choosing to swap NEO to bNEO at a 1:1 ratio. Alternatively, the swap can be triggered automatically by transferring NEO to the contract address, NPmdLGJN47EddqYcxixdGMhtkr7Z5w4Aos.
After swapping, GAS can be claimed at any time by transferring 0 bNEO to the contract or using the provided tool on the frontend. It should be noted that the platform charges a 1% performance fee on GAS earned through voting, which is allocated to an internal treasury. Users may also unwrap NEO by transferring 0.01 GAS to the contract for each bNEO they wish to unwrap—1% of this fee is sent to the treasury, and the other 99% is distributed to other bNEO holders.
A live breakdown of NeoBurger system information, including agent balances and total bNEO supply, can be found on the NeoBurger Dashboard. The code for the BurgerNEO and BurgerAgent smart contracts can be found in the project repository.
More information about the service and example voting strategy breakdowns can be found in the original announcement:
https://medium.com/@neoburger.io/neoburger-make-your-neo-divisible-and-earn-more-gas-812dfe22a45
About The Author: Brett Rhodes
Brett is a blockchain enthusiast and freelance writer who originally began producing content for the gaming & eSports industries. Now he spends most of his time contributing in the Neo ecosystem.
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