NEO posted a statement in Chinese and English on their blog today regarding the recent ICO regulation developments in China.
The main take aways from the statement include –
- NEO was the first token sale to offer refunds over a year ago.
- The refund option has been extended for participants of ICO1 and ICO2 for those who wish to return NEO.
- The NEO Council has resources to support development for the next few years.
- NEO will be working with legal advisors to establish a legal framework for internationally compliant NEO smart contracts and make it available for adoption.
- Reiteration that regulation was inevitable and that NEO had made a decision to be compliant with laws and regulations from day one.
The full statement can be read below –
Dear NEO Community:
First of all, we would like to express our gratitude to all of you who are active in the community for your continuous supports and contributions. NEO, as an open-source project has witnessed sound development since it was initiated in 2014.
NEO specializes in the underlying technology of blockchain and aims to build an open network utilizing digital assets, digital identities and smart contracts to serve the smart economy in the future. dBFT Consensus Mechanism, NeoContract Smart Contract System and NeoX Cross-chain Protocol were all originally developed by NEO, a tech-savvy community that specializes in core technologies of blockchain.
Back to a year ago, NEO completed its refundable ICO, the first ever in token-raising history, where about half of the participants were from outside of China. From Sept. 7, 2016 when the ICO took place, to Oct. 17, 2016 when NEO’s mainnet was launched, all participants were at liberty to demand full refund. Over the said period, there were 15 refund requests executed, amounting to a total of 50.308364 BTC. Such refundable scheme had never been practiced before and has proved to protect the right of ICO participants effectively.
With growth of the community, NEO has expanded from a China-based open-source project to a renowned and world-leading public blockchain supported by communities and developers from all around the world. Today, NEO Council has obtained sufficient resources to support its technological R&D and ecosystem development for the next few years. In light of the ever more explicit ICO regulation requirements released globally, we decide to extend the refund option. Those who participated in seed-round financing, ICO1 and ICO2 may contact email@example.com prior to Oct. 17, 2017 to be fully refunded after sending back all NEO tokens obtained from ICO.
Since 2016 ICO, we have made it clear that NEO is a not-for-profit open-source project driven and funded by the community. Apart from our continuous efforts in product delivering and ecosystem developing, we also seek to contribute back to the community in other ways. Therefore, we will offer pro rata incentives to seed-round financing, ICO1 and ICO2 participants who decided not to execute their refund options. Detailed plan will be released later.
In addition, NEO Council is making strenuous efforts in prompting NEO’s sustainable development under existing laws and regulations. In Q4 2017, NEO will work with international legal advisors to establish a legal framework which is compliant in major countries for smart contracts running on top of NEO to adopt.
Compliance is inevitable after the blockchain industry matures to a certain stage. From the very beginning, we decided to be compliant with laws and regulations in terms of the choices of design philosophy, consensus mechanism and governing model. These choices made us well-prepared for challenges and opportunities waiting ahead. NEO community is looking forward to your active engagement and valuable advices. We would like to express our gratitude again for your company and support throughout the journey!
September 5, 2017
About The Author: Dean Jeffs
Dean is a digital project manager who has worked extensively with start ups and agencies in the marketing space. Fascinated by the potential applications of blockchain technology, Dean has a passion for realising the new smart economy.
More posts by Dean Jeffs