Early launch without trusted NEO scares me (is it just me ?)


(Alex Forward) #1

I just read the staking contract. A contract for a blockchain I know almost nothing about. So are Nash customers right ? Yet the media always pretend they know more about everything. And the media influences customers…

This is what a critical journalist/customer will notice:

The NEO main-net currently has 7 consensus nodes:

  • NEO Foundation maintains 5 of the nodes
  • CityOfZion maintains 1 node
  • KPN maintains 1 node

However Nash hasn’t launched yet. It doesn’t sound like Nash is taking NEO consensus into account for timing its launch… Why not ? Or does Nash do take this into account ?

Am I missing something ?

  1. What do consensus nodes do and how much power they have in the network ?
  2. How does Nash rely on them ?
  3. How can we help make the NEO Foundation trusted ?
  4. What can I say to other people having this concern at early stage ? (saying ‘It’s just all FUD’ won’t help gaining trust. How can we ?)
  5. Is ‘non-custodial’ going to be the primary selling point from day one ? is this a good idea ? Can this go together with NEO announcing new nodes ?
  6. Does Nash plan to release educational information ?

I am afraid of newsmedia to write about Nash promoting non-custodial exchange while the consensus mechanism behind the blockchain enabling this is controllable by single entity: NEO Foundation? (Even I think this is very temporary… do others know this ? should they know ?)

You think once this staking-contract goes live… nobody can write about this ?
If I just locked up NEX in a contract after learning about Nash non-custodial soulutions…and then read about this from a bad informed journalist…

  1. What analogies can Nash and community use to explain his/her fund are safe. Are they ? And how ?
  2. Who is going to enforce justice if something goes wrong… ?
  3. What convinced European regulators to approve a security token that lives on NEO blockchain ? (does that mean they trust NEO blockchain and its Foundation ?)

I think part of transparency is acknowledge this and show initiative to make NEO more trusted. For example by actively promoting NEO’s onboarding program. And convince customers to vote for a company they would trust. https://medium.com/neo-smart-economy/how-to-become-a-neo-consensus-node-2a6816f56630 Educate about the NEO roadmap…

Yet I haven’t seen any comment from team concerning this…
Am I the only person concerned about this ? (Early launch without trusted NEO)

(Trust Yourselves ) #2

From what i understand in your post. You think Nash is dependent on NEO? Well it’s not.

(Ree L Spirit) #3

I think he is concerned about the staking having to be dependent on neo

(Trust Yourselves ) #4

Ah ok. I guess the team should reply so

(Stay Humble101) #5

Alex, Nash uses the Matching Engine to interact with different blockchains, it doesn’t rely on Neo to run the entire Exchange. Yes NEX is a NEP-5 token but as you know, the token is not integral to the day to day functions of the Nash Exchange, it is more representation of your potential earnings from dividends. Nash Exchange is no more reliant on Neo than they are Ethereum or any future blockchain they happen to bring on board. They could easily perform a Token Swap in the future to fully de-couple from NEO with all tokens in the Staking Smart Contract automatically swapped. Don’t over think this.

(FCC) #6

@Alex what @StayHumble101 says is correct. The exchange matching and running nothing has to do with NEO, but NEP5 tokens only make sense to operate on it.

In summary:

  • NEX token is a NEP5 compliant token, running on NEO network. So the staking contract (that locks the tokens) only make sense to be on NEO! If it was on any other network we would be adding risks, not decreasing - for example if the staking contract was launched in Ethereum, being NEX a NEP5 - it could have issues if Ethereum or NEO had issues.

  • This is a connerstone feature of our system: we trade real tokens, so contracts managing those are deployed on the network they run, preserving their security features. The “fake DEX” some are building run on their own chain, trading “tethered/anchored” tokens, adding the risk of that chain to it and decreasing the security profile of that token even if the tether is built on smart contracts.

  • We monitor NEO for a long time now, if anything happens we could migrate the staking contract. The exchange would continue to run as usual.

(Ethan Fast) #7

As Fabio noted, all the staking logic is monitored and backed-up by our own off-chain, distributed matching engine network. If in some crazy scenario there was a problem with the NEO chain, we could easily move the contracts and all active stakes to a new chain.

(Ballis World) #8

IMO this is a unfortunate situation.
The founders of Nash have been involved with Neo for a while so it made sense to launch as a NEP5 token.
However although Neo is one of the top smart contract platforms, it doesn’t come close to Ethereum (imo). The FUD surrounding Neo isn’t great and its future is definitely less certain than Ethereums.
So migrating over to Ethereum would seem a much better option…

However this is where it is difficult. NEO Council are somewhat involved with Nash as I believe 15% of NEX tokens were given to them as well as Da Hongfei and Erik Zhang being listed as advisors. Also Nash now hold a somewhat significant percentage of NEO (if this was done on Ethereum, it would be less significant). So moving over now would be somewhat damaging.

I can only assume the team are hoping for Neo to beat this FUD. However if there’s any doubt on Neo futures, I would rather moving over to the Ethereum platform sooner rather than later (preferably before launch). But I can’t see this being done this close to launch, especially not with the NEO DevCon event coming up.

(Sam) #9

All it takes for Neo to beat their fud is to decentralize the consensus nodes further, but none of this matters for Nash anyway. Anyone that has done their research knows that Nash exchange is not dependent on Neo for success or operation so not sure what the unfortunate situation is exactly.

(Ballis World) #10

I do understand Nash is not dependent on Neo, however it is still a NEP5 token and therefore stored on the Neo chain. There is a reason the vast majority of tokens chose Ethereum…
I guess this doesn’t matter too much as Ethan mentioned the staking logic is backed up and therefore if there was ever an issue with Neo, they could easily migrate to another chain.

(Alex Forward) #11

Neo’s token mechanics are clever imao. Its just that NEOs vision requires more adoption to succeed. Its still early days. I do believe they will get there…

I expresed my concerns here because Nash is about to promote non-custodial system while the staking contract runs on a chain who is not there yet…
In general NEO is fine. Except if you launch a project on the chain and then market your project with primary selling point ‘non custodial’.

As far as Nash concerns: I now understand its only the staking contract running on NEO.

(FCC) #12

@Alex that is a very misinformed view. The exchange is non-custodial, meaning the exchange doesn’t have control of the funds, tokens are as secure as they are naturally in their chains. It could be non-custodial with tokens of consortium or private chains for example.

(EC) #13

Would Nash be able to support assets issued on a permissioned chain e.g. Tokenised gold on Quorum? By support I mean allow for trading, collecting fees and distribution to people staking NEX?

(Alex Forward) #14

Thank you.
1. Nash Exchange is not operating on NEO blockchain.
2. Only the NEX NEP5 security token relies on NEO blockchain. This token is only ment for people who wish to invest in the Nash company. (to receive dividents or to speculate on the NEX value; like buying shares).
3. There are no NEO related risks applicable for the operation of Nash Exchange.

All right ?

(Conversation is getting confusing because I first doubted NEO, then I defend NEO in general with single hypothetical exception… I believe there is confusion between Nash operation and NEX token + contract. Apologies.)

(FCC) #15

@elliptic.curve yes that can be done with some auth logic.

(Ree L Spirit) #16

Yes, I believe nash token on neo is only for contract staking. The matching engine will look at the contract on neo platform and distribute dividends accordingly. Although, what’s to say the team can’t go rouge and change the matching engine to take all dividends? Not saying they will, but it’s centralized that they could do that.

(Harry) #17

The matching engine will run with 5 nodes to start with ( 5 founders ) and then expand and let people join the party.

In the NEOverse we call this the safe approach :wink:

Because we don’t like random people ho are in it for the moolah running nodes and call this cr@p de-centralisation sabotaging the network and shorting it with 100x leverage at the same time.

(EC) #18

Excellent! Opens the door to even more possibilities in the future…

(Njb) #19

NEO Foundation is heavily invested in Nash BTW.