Blockchain technology continues to evolve at a rapid pace, and few figures have been as instrumental in shaping its trajectory in China as Da Hongfei, the founder of NEO—originally known as AntShares. Often dubbed "China’s Ethereum," NEO has emerged as one of the most influential blockchain platforms globally, ranking among the top 10 cryptocurrencies by market capitalization during its peak. In this exclusive interview, Da Hongfei shares insights into NEO’s development philosophy, tokenomics, regulatory views, and future innovations.
Building a Sustainable Blockchain Ecosystem
NEO’s core mission is to build and foster a robust blockchain ecosystem that supports decentralized applications (dApps) and smart contracts. Unlike many projects that rushed into the ICO frenzy, NEO took a cautious and strategic approach when selecting early partners.
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“In the early days, we weren’t overly selective with ICO projects,” Da Hongfei explained. “We reviewed their backgrounds and visions, and most were legitimate. But over time, we’ve raised our standards.”
This disciplined approach reflects Da Hongfei’s long-term vision: prioritize value creation over short-term speculation. He believes that sustainable growth comes from nurturing real innovation rather than chasing market hype.
The Role of Patience in Innovation
One of the defining traits of NEO’s journey has been patience. Before launching the platform, Da Hongfei spent years researching blockchain technology—well before it gained mainstream attention.
“There’s a Chinese saying: when the wind blows, even pigs can fly. That applies to blockchain too,” he said. “But you can’t always ride the wave. We chose a path and深耕—deeply cultivated it—waiting for the wind to come.”
His motivation wasn’t popularity but genuine passion. In 2014, blockchain was still controversial and largely misunderstood. Yet, Da Hongfei persisted, driven by belief in the technology’s transformative potential.
Regulatory Clarity: A Path Forward
Regulation remains one of the most debated topics in the crypto space. Da Hongfei has consistently advocated for clear regulatory frameworks, viewing them not as obstacles but as necessary steps toward legitimacy and mass adoption.
“If a country wants to regulate cryptocurrencies or tokens, the best place to start is exchanges,” he stated.
He argues that speculation, while prevalent, does not create intrinsic value—it merely redistributes it. Since speculative trading operates like a zero-sum game, proper oversight is essential to protect investors and ensure market integrity.
On Tether and Stablecoin Risks
Stablecoins like Tether (USDT) play a crucial role in reducing volatility and enabling seamless trading across platforms. However, Da Hongfei expressed cautious skepticism about Tether’s long-term sustainability.
“It’s similar to historical gold-backed notes,” he said. “Issuers promise reserves, but over time, they may be tempted to issue more than they hold.”
While he stopped short of accusing Tether of malpractice, he highlighted a critical insight: as long as USDT is widely accepted, its peg will likely hold—even if reserves aren’t fully backed.
“Even if people discover Tether only has 95% reserves, will USDT drop to $0.95? I don’t think so. As long as it's used everywhere, it won’t die.”
This network effect creates resilience—but also systemic risk. If confidence collapses suddenly, the fallout could ripple across global markets.
Advancing Token Design: Making NEO Divisible
One technical limitation of NEO has been its non-divisible token structure. Each NEO token generates GAS (the utility token used for network fees), released gradually per block. Currently, users cannot split a single NEO token, which creates friction in transactions and staking.
Da Hongfei acknowledged this challenge:
“NEO’s indivisibility was designed to ensure timely and predictable GAS distribution. If tokens were divisible, it could introduce mathematical inconsistencies in how GAS is allocated.”
However, change is on the horizon.
“We’re exploring a new mechanism where the total supply of GAS is approximately 100 million—not exactly—and under this model, NEO tokens could become divisible.”
This upgrade would significantly enhance usability, making micro-transactions and broader participation more accessible without compromising network stability.
Collaboration with Academia and Industry
NEO isn’t operating in isolation. The project actively collaborates with academic institutions and industry leaders to drive innovation. One notable partnership involves Stanford University professor Zhang Shicheng (Franklin), who contributes to NEO’s ecosystem development.
“We’re open to working with both academia and industry,” Da Hongfei said. “We co-founded an Open Blockchain Foundation registered in California to support research and fund university programs.”
These initiatives aim to bridge the gap between theoretical research and practical implementation—a vital step in maturing the blockchain space.
How Users Can Engage with NEO
Developers and enthusiasts are encouraged to participate through:
- Building dApps on the NEO blockchain
- Contributing to open-source tools
- Joining community governance discussions
- Participating in developer grants and hackathons
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Vision Beyond “China’s Ethereum”
While often labeled "China’s Ethereum," Da Hongfei sees this as a simplification.
“Like Baidu being called ‘China’s Google,’ or Alibaba as ‘China’s Amazon,’ these comparisons help people understand what we do. But we’re focused on making NEO stand on its own.”
The team is actively optimizing the platform with unique features such as:
- Digital identity integration
- Regulatory-compliant smart contracts
- Cross-chain interoperability via projects like Poly Network
- Enhanced consensus mechanisms for scalability
FAQs About NEO and Its Future
Q: Why did AntShares rebrand to NEO?
A: The name “AntShares” caused confusion due to its similarity with Ant Financial (Ant Group). While The Matrix inspired some thematic elements, the name NEO wasn’t directly taken from the movie character.
Q: Can I stake NEO to earn rewards?
A: Holding NEO generates GAS over time—essentially functioning as passive income. However, unlike traditional staking, no action is required beyond ownership.
Q: Is GAS a dividend or security?
A: No. GAS distribution is not a dividend or equity-like payout. It's part of the protocol design to incentivize holding and using the network.
Q: What makes NEO different from Ethereum?
A: NEO supports multiple programming languages (like C# and Java), emphasizes regulatory compliance, and uses a dBFT consensus algorithm for faster finality compared to Ethereum’s PoW/PoS models.
Q: When will NEO tokens become divisible?
A: While no official timeline has been announced, Da Hongfei confirmed that the team is actively researching a new mechanism that would allow divisibility while maintaining system integrity.
Q: How does NEO handle scalability?
A: Through dBFT (delegated Byzantine Fault Tolerance), NEO achieves high throughput and fast confirmation times—up to thousands of transactions per second under optimal conditions.
Da Hongfei’s leadership blends technical depth with philosophical foresight. From resisting speculative trends to prioritizing foundational research, his approach underscores a commitment to building lasting infrastructure—not fleeting gains.
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As NEO evolves—especially with upcoming upgrades like token divisibility—it remains a pivotal player in shaping the next generation of decentralized systems. Whether it fully sheds the "Chinese Ethereum" label or not, one thing is clear: NEO is building its own legacy.