The Neo Foundation has announced the Neo Bond program, a new month-long initiative designed to provide high-yield returns and price protection for NEO token holders. The program was introduced following an internal investigation into recent large-scale NEO token transfers that impacted the composition of consensus nodes and coincided with a significant decline in market value.
The Neo Bond offers a 50% APY, translating to a 30-day interest rate of approximately 3.44% through compound interest calculations. In addition to yield incentives, the program incorporates a price protection mechanism: the NF will guarantee a minimum price of US $5 per NEO for all participating assets. If the token’s market price falls below this threshold at the time of the return of the funds, the Foundation will compensate to cover the difference.
The Foundation provided the following example scenarios:
- If the market price drops to $4 at the time of fund return, a user depositing 100 NEO will receive approximately 128 NEO, to compensate for the price reduction (I.e., 100 × (5 ÷ 4) + 100 × 0.0344 ≈ 128 NEO).
- If the market price rises above $5, such as US $6, the user will receive approximately 103 NEO based on the accrued interest with no additional compensation for price (I.e., 100 × (1 + 0.0344) ≈ 103 NEO).
All assets deposited into the Neo Bond will be managed via a multi-signature wallet under the NF’s control. To ensure transparency and the ability to fulfill obligations, the Foundation has pre-funded the wallet with 1 million NEO.
The deposit window opens on April 5, 2025, at 4:00 AM (UTC) and will remain open for seven days. After the user deposits their NEO, a 30-day lockup will begin, during which deposited assets are non-accessible. Participants must deposit a minimum of 30 NEO as it is a non-divisible asset.
Participants are strongly advised to deposit NEO from their personal Neo N3 wallets, and not directly from an exchange. Using custodial exchange wallets may lead to misidentification of funds and forfeiture of returns.
The program is capped at 5 million NEO, and once this ceiling is reached, no additional deposits will be accepted.
The Neo Foundation noted that this intervention is a departure from its historical stance of avoiding direct market actions. However, in light of recent disruptions, the NF stated that it felt compelled to act decisively to reinforce stability and rebuild community confidence. The Neo Bond Program is aimed at unifying token holders through incentivized participation while fostering a more resilient and predictable market environment.
To learn more about Neo Bond visit the link below:
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