NEO Announces New Oversize Fee Addition as Part of Its Blockchain Mainnet Upgrade On June 3
- NEO announces it will be performing a network upgrade on June 3
- The goal is to make general improvements on the network for it to become more efficient
The Ethereum (ETH) of China, NEO, announced that it is planning to conduct a network upgrade as soon as on June 3 at 9:00 am (GMT). The information was released in an official blog post on May 29. NEO has lost several positions in the market after the bear trend that digital assets experienced in 2018.
NEO Announces New Plans For Its Network
NEO, one of the most popular blockchain networks in the market, announced that it will be upgrading its network on June 3. According to the blog post released by the organization, one of the main features of this upgrade is related to the addition of an oversize fee that is measured in GAS, a digital currency used on the NEO blockchain. This oversize fee is going to be applied to transactions of over 1,024 bytes.
The oversize fee for transactions is going to be determined by a new formula: (transaction size) * 0.00001 GAS + 0.001 GAS. There are also some exceptions to this rule. Transactions that cost less than 0.001 GAS are going to be considered as low priority and will be capped at 1,024 bytes.
The fees that the network imposes aim at discouraging spam attacks on the network or malicious transactions. This allows users to have a better overall experience while using the network. According to the post, exchanges and individuals that are using different NEO tools should upgrade their clients to avoid transaction losses due to the new fee protocols.
The NEO 3.0 upgrade launched at the end of the last month was created in order to improve the overall network performance and its stability. Erik Zhang, the co-founder of NEO, explained that he hopes large-scale entertainment applications to start using the NEO blockchain.
Zhang mentioned that the new network provides users with the possibility to run large-scale apps on top of blockchain technology. They expect applications such as YouTube, Alipay and other giants to deploy their services on the Neo blockchain.
Currently, NEO is the 19th largest cryptocurrency in the market. It has a market capitalization of $880 million and each NEO can be purchased for $13.55, according to CoinMarketCap.