What is Gas (GAS)?

Deep Dive

1. Purpose & Value Proposition

GAS is the operational token of the NEO blockchain, a platform often dubbed "China’s Ethereum." Unlike NEO (the governance token), GAS is used to pay for transaction fees and computational resources required to execute smart contracts. This dual-token model separates governance (NEO) from utility (GAS), streamlining network efficiency and incentivizing long-term participation.

2. Tokenomics & Governance

• Supply: Fixed at 100 million tokens, with GAS generated automatically as NEO is held.
• Distribution: On the upgraded Neo N3 blockchain, 10% of newly minted GAS goes to council members, 80% to voters, and 10% to all NEO holders (Neo Migration Docs).
• Governance: Holders stake NEO to vote for council members, who adjust network parameters like block rewards and fees.

3. Ecosystem Fundamentals

GAS is integral to Neo N3, the latest iteration of the blockchain, which introduced features like decentralized storage and cross-chain interoperability. The migration from Neo Legacy to N3 in 2021 emphasized GAS’s role in subsidizing transaction costs and maintaining network security.

Conclusion

Gas (GAS) is the lifeblood of NEO’s blockchain, balancing utility, governance, and incentives. Its design encourages active participation while ensuring network sustainability. How will GAS adapt to evolving demands for scalable and cost-efficient blockchain solutions?