Neo Name Service (NNS) is a decentralised domain name service which will run on the NEO blockchain. In short Neo Name Service will allow users to assign a .neo domain as an alias for their public key. So rather than having a long complicated public key users can send and receive funds to an easy to remember name such as bitguru.neo.
Neo Name Credit’s (NNC) is the native token within NNS, NNC will allow users to earn GAS simply by holding the token however, NNC has a number of different use cases which many are currently unaware of.
NNC Token Use Cases
Neo Name service is a very simple application, users will be able to bid for a domain name which will be linked to their public addres via a smart contract. All bids on the live verion will use SGas which “is a NEP5 token, which is bound with NEO’s GAS at a ratio of 1:1 and they can be converted with each other freely.”
Each month all of the GAS which is used to purchase .neo domain names’ is then distributed amongst the NNC holders. Many believe that holding NNC token will only provide GAS dividends, however, the NNC token has many use cases, as well as factors which will drive its’ value up.
Within the NNS system there are two types of markets’. Firstly there is the primary market, which facilitates the first-time distribution of .neo domain names. on the primary market only GAS is used, this GAS is there distributed in its’ entirity to NNC holders.
Then, there is the secondary market. This enables the buying and selling of pre-owned domains, or domains which have previously been purchased in the primary market. In the secondary market, only NNC tokens are accepted as a means of payment.
Therefore if a user wishes to purchase a domain in the secondary market and they do not own NNC tokens, they will need to purchase these tokens from an exchange before using them. Another factor which will drive the value of NNC up.
Future Blockchian Migration
NNS will initially launch on the NEO blockchain, However, the NNS team planning to launch their product on further blockchains’, with migration onto the Ontology blockchain a certainty in the near future.
By holding NNC tokens’, you will be credited with an equal ratio of tokens when the NNS’ domain name registry system migrates onto another blockchain in the future. The ratio which you will be distributed tokens will be determined by the token supply of the NNS smart contract on that particular blockchain. This may be more or less than is currently on the NEO blockchain, and will be announced closer to the time of migration.
The NNC token has a number of ways in which it will drive it’s own value up. The token encourages users to hold it by offering GAS dividends from the NNS platform which will increase scarcity of the token. Demand is then driven for the token as the secondary market requires that purchases be made using NNC tokens’
Finally the potential of migration to new blockchains’ further increases the reason to hold NNC tokens. The project is being developed by New Econo Labs (NEL) who are “The Biggest NEO Chinese Community”, they have vast experience in developing dApp’s and this is one of the most highly anticipated projects within the NEO ecosystem.
Initially, NNC tokens will primarily be used to receive GAS dividends. In the future, they plan to introduce more use cases that are not only bound to the trading of domain names . For example “Decentralized Autonomous Organizations (DAO), decentralized trading, and token liquidity facilitation are already under consideration.”
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