NEO Global Development (NGD) published its CNEO smart contract to the NEO MainNet on September 19th, 2018. CNEO is an NEP-5 compliant contract asset, which can be exchanged with the native asset, NEO, at a 1:1 ratio.

CNEO and Smart Contracts

CNEO, like its sister contract CGAS, was created because native assets on NEO (the NEO and GAS tokens) were designed before the NEO blockchain had fully developed its smart contract framework. Native assets currently use an older UXTO accounting system, derived from Bitcoin. Newer tokens on the NEO blockchain follow the NEP-5 standard, and are fully smart contract-compatible.

CNEO exists to let developers use and transfer a NEO equivalent in their smart contract, just like any other NEP-5 token on the blockchain. CNEO can be freely converted to NEO at a 1:1 ratio, although it will not generate GAS or CGAS.

NEO 3.0 and Native Assets

It should be noted that CNEO and CGAS are potentially stopgaps rather than permanent solutions. Permanent conversion of the native assets NEO and GAS from their current UXTO model to the universal NEP-5 token standard is under discussion on the NEO GitHub. The changes may be adopted as part of the 3.0 milestone for the NEO blockchain, but would need to be implemented as part of a new chain.

NGD has also published a Medium post titled “15 things you should know about CNEO and CGAS” to help people understand the features and utility of the new tokens.

Details regarding the CNEO token and the CNEO contract can be viewed at the following link:

https://github.com/neo-ngd/CNEO-Contract.