In this issue:

• This Week in Neo Tokyo: 2 Weeks is Over (by Flower83)

• Crypto & NFT Market Overview (by Flower83)

• BYTES June Chart Update(by Steven-T)

• Exploring Polygon zkEVM at EDCON 2023 (by mhl.eth)

by Flower83

The wait is over. Oh, and what a fun ride it has been. The Bytes 2.0 update is finally happening, and this marks a new period for Neo Tokyo. The Two Weeks are coming to an end on June 15th, and the period will be remembered by many as a nostalgic era that will forever live in our hearts.

The Great Migration

Bytes 2.0 update is probably one the most complex contracts in the space to date. This week, the first stage of the update was concluded, with a successful migration of all of the 11 different NFT collections in the Neo Tokyo ecosystem to a new contract.

So why is the migration needed?

This new update fixes a few issues that the old contract had, mainly the land and bytes claiming issue, and the vault stripping. Going forward, assembling an S1 citizen will require a vault. The updates also adds more flexibility to cosmetic items and introduces a proxy contract system that will allow devs to implement potential upcoming changes more seamlessly in the future. Additionally, the royalties for the collections are now hardcoded and not dependent on the current OpenSea’s or Blur.io’s policies.

The migration has been smooth for all of us that went through it so far. If you have not yet migrated your citizen NFT, below are a few simple steps you can take:

• Step 1: Go to https://neotokyo.codes/ 

• Step 2: Click on Mint/Upload pop-out on the left

• Step 3: Click CODES_MIGRATION.EXE 

• Step 4: Connect Wallet

• Step 5: Approve NT NFT Collection(s)

• Step 6: Click Migrate

There is no rush, but those that do not migrate, will not be able to stake their $BYTES. The official date for Bytes 2.0 launch is set on June 15th. There will be some promotional events leading up to it, as well as a round table in the Discord server before launch.

To ensure security and optimisation, the final code for Bytes 2.0 and migrated NFT collection went through two extensive external audits - one by PeckShield and one by Code4Rena.

There have also been a few changes from the previous version of tokenomics for Bytes 2.0. You can read the final version of the document here. In short, the document was condensed and made less technical where possible. The equations were rewritten in a way that most can now understand, the average Bytes per day charts were removed due to the dynamic nature of the emission pools. Lastly, the Liquidity Rewards pool section was removed from the document, even though it could still be enabled in the future if there’s a need.

Perhaps most importantly, the model was switched to locked staking. You can choose a lock up period of 1 month, 3 months, 6 months, 1 year or 2 years. Also, the Non-Citizen staking pool was removed.

So far, 880 S1 and 1152 S2 citizen NFTs have been migrated. All the previous collections have been renamed into [Legacy] on secondary markets (an example of the old S2 collection can be found here). The overall S1 and S2 roles carried over seamlessly via Collab.Land.

In terms of price action, as expected, the NT ecosystem as a whole got a bit of a boost. The clear winner was our native token $BYTES which practically did a 2.5x. Well, briefly.

Speculation on the news and their potential positive impact on floor prices comes naturally to crypto degens, and although Becker did warn everyone to be careful, some moderate hype is always needed to expand our reach and let the others know what we have been cooking up in the Neo Tokyo ecosystem.

Grand Rising.

by Flower83

It is not exactly pretty out there these days. Well, unless you are shorting.

You see, we witnessed another huge price dump in the crypto market. This time, it is not all the SEC lawsuits. This time, no one actually knows what is going on. There are, however, lots of speculations circulating around on social media.

But as we can see, alts took some heavy hits.

What is also different this time around is that this sell off did in fact impact the NFT space as well, not just alt coins. Here is what the prices looked like on Saturday, after the fall:

It's a sea of red. Let’s go over some notable price movements.

BAYC failed to break that psychological barrier of 50 ETH floor that they have attempted to tackle for weeks now. Other NFTs in Yuga’s ecosystem are also trending downwards, with Mutants not only still trading below 10 ETH, but now getting further away with each passing day. Otherdeeds are also struggling, now retesting 1 ETH floor, even though they were cruising around 1.8 just a few weeks ago. For some reason, Kennels (BAKC) is the only collection in their ecosystem that is slightly up.

Other NFT collections are not much different, Pudgy Penguins had their run up after the bullish announcements about the future direction of their ecosystem, but have since cooled off quite a bit and broke below 5 ETH floor. Moonbirds are still struggling as well. Milady is not getting shilled by Elon anymore, and with the memecoin hype gone, their holders are not making 5x everyday anymore, so there are no profits to be funnelled back into their ecosystem. Lastly, Azuki had some sell offs as well due to the June event hype subsiding, as predicted in my last NFT Tuesday.

Not many collections are up. Except Neo Tokyo, due to migration and Bytes 2.0 finally rolling out. And KPR has seen some sweeps. Also the Nullish ecosystem is up a lot, due to inscriptions on BTC.

In terms of weekly trading volume, things are also not looking particularly bullish, no. Well, except for blur.io. They are taking over the space, so to say. This week, volume on all other marketplaces combined come to just slightly above 50% of what blur is handling.

Neo Tokyo, bustling and vibrant, its glow casting an ethereal light in the virtual expanse. It was a marvel, yes, but like any pioneering venture, it wasn't without its limitations.

Now an upgrade is upon us, the era of Bytes 2.0. This wasn't merely a software update, it was a metamorphosis. With its launch, the city began to change, the virtual and the real blurring into one. In the heart of Bytes 2.0 beat the pulse of our city's new lifeblood – an enhanced digital currency. Each transaction weaving new connections, it was no longer just an exchange of value, but a bond strengthening the core of our digital city. It powered our economy, it linked our citizens, and it drove our progress.

In this new world, our digital currency will become the great synthesizer. It will thread through every street, every home, every chip and bit, pulsating with potential. It will take the disparate pieces of our city and weave them into something greater, something whole. It’s the catalyst that makes our city not just a network of connected parts, but a unified organism, vibrant and alive.

And so, with the advent of Bytes 2.0, the strength of our city didn't just grow - it synthesized, blooming into a digital utopia before our very eyes.

In May, a $25k sell swap brought the price to $2.50 for some lucky buyers who quickly brought the price back to $3.50. This highlights the liquidity depth of our token for now. With time, I am predicting slippage will lower as new BYTES stream into the liquidity pool strengthening base liquidity.

As you can see, BYTES is off to a hot start this month. We have not seen the entirety of BYTES demand coming from citizens who may want to buy their max allocation for staking. My anticipation for the BYTES price is conservative based on the current supply and demand structure outside of staking.

Thanks to citizen Ktrap and his thread, we can read the data streams that show how many citizens “may” be fully prepared to stake. “With the population of Neo Tokyo @ 2,083 S1 Citizens: 🔹A max potential of 10.7% of S1’s are prepared to stake the max amount of 2k Bytes🔹Potential of 15.0% of S1 Citizens are prepared to stake 1k-1.99k Bytes”

As mentioned in the March Bytes update, the ETH price of 0.002 has proven to be a good investment opportunity and can “offer 100% gain opportunities in short order.” Because the BYTES token supply on the market remains low, very little buying is needed to effect the price. Currently BYTES is up 66% vs eth since this month's 0.002 start.

As the BYTES paradigm shifts, new support levels will form. I will be watching the inflation trends and how the market liquidity absorbs the injection of BYTES into the system.

These pivot charts are not meant to predict anything but they can be used to assess risks and opportunities in the market. Catalysts can affect the price of BYTES in unexpected ways, and if you have any questions, feel free to reach out on Discord at Steven-T or on Twitter @neotokyocat. To learn more about pivot points and how to use them effectively, visit: http://www.patterntrapper.com/floor-trader-pivot-calculator.html.

I attended EDCON 2023 in Montenegro from May 19 to May 23, where I got the chance to speak with a lot of developers and contractors. Jordi Baylina, the technical head of Polygon zkEVM, was one of them. After his panel, which mostly covered privacy, security, and zkEVM technologies, we shared some ideas regarding possible applications of zkRollups.

But what is Polygon zkEVM? Is it solving any problems? Let's dive in!

Polygon zkEVM is a Layer 2 scaling solution that combines optimistic rollups with zero-knowledge proofs, keeping dApps fully EVM-compatible while enabling high throughput and cheap transaction costs.

The zero-knowledge technology ensures that transactions do not reveal any private information on-chain, improving the Web3 user experience. Many use cases, such as financial transactions or supply chain tracking, will benefit from this technology, making zkEVMs the fastest and most affordable option in the market.

But how does it operate? Instead of performing transactions on the Ethereum network, numerous transactions are put together into a single proof using zkRollups before they are sent to the Ethereum chain, ensuring better scalability and lower costs because it contains the compressed data of the transactions.

Since the Polygon zkEVM is compatible with the EVM, developers can bridge their already-created Ethereum smart contracts and dApps to the Polygon zkEVM while taking advantage of the security and decentralization of the Ethereum network.

Transactions are carried out and then verified off-chain in the zkRollup ecosystem. The proof containing the compressed data is then sent to the Ethereum mainnet for verification after the transactions have been completed. Rather than processing each transaction, the Ethereum network only requires verifying the authenticity of the proof, which greatly decreases the cost of computing and gas fees.

Ethereum validators are able to recognize and reject any effort to change or tamper with the transactions, making zkEVM bulletproof!

At times, it can be challenging to determine the boundary between privacy and transparency. We may not want others to be aware of our actions, yet we desire to know what they are up to. This seems contradictory, doesn't it?

The solution may lie in "proving without proving"; maintaining our privacy while not undermining the transparency narrative sold to us from day one. ZkRollups offer limitless applications.

The only limit is your imagination.

All Neo Tokyo News content is for entertainment purposes only and not financial advice.

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