On October 16th, 50 million NEO tokens will be unlocked and made available to the NEO Council. This represents half of the total NEO token supply, with the first 50 million distributed during crowdfunding.
The purpose of the NEO tokens released this month is to encourage development of the NEO ecosystem.
The recently announced Neon Meta Exchange is one example of how these funds will be used. The NEO Council will be investing NEO tokens into the the NEX token utility sale to help fund the project, and accomplish one of the items on NEO Council’s Q4 2017 roadmap.
15 million NEO tokens will be available to the NEO Council annually and will be distributed over the course of the entire year. It is unlikely that the entire amount will be distributed within a 12 month period. It is also important to note that the NEO tokens distributed will not be going direct to exchanges, but rather into the hands of developers in the form of rewards and funding.
You can read an excerpt from the NEO white paper regarding distribution below –
The second portion is 50 million NEO managed by the NEO Council to support NEO’s long-term development, operation and maintenance and ecosystem. The NEO in this portion has a lockout period of 1 year and is unlocked only after October 16, 2017. This portion will not enter the exchanges and is only for long-term support of NEO projects. The plans for it are as below:
- 10 million tokens (10% total) will be used to motivate NEO developers and members of the NEO Council
- 10 million tokens (10% total) will be used to motivate developers in the NEO ecosystem
- 15 million tokens (15% total) will be used to cross-invest in other block-chain projects, which are owned by the NEO Council and are used only for NEO projects
- 15 million (15% total) will be retained as contingency
- The annual use of NEO in principle shall not exceed 15 million tokens