Neo is developing a sidechain designed to support Ethereum-based decentralized applications (dapps) and ensure full interoperability with its N3 mainnet, founder Da Hongfei announced at a Hong Kong event.

This announcement serves as a precursor to an upcoming testnet, expected by the end of the year, with the mainnet launch planned for a later date.

The sidechain will inherit key features from Neo, including its Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism, to enhance scalability. The sidechain will utilize Neo’s native GAS token for both governance and utility functions.

Designed to resist Maximal Extractable Value (MEV) attacks such as frontrunning and sandwich attacks, the project aims to provide a secure environment, according to team claims.

Founded in 2016 and …