What is Gas (GAS)?

Deep Dive

1. Purpose & Value Proposition

GAS is Neo’s operational token, covering transaction fees and smart contract execution costs. Unlike Ethereum’s gas (paid in ETH), GAS exists as a separate asset, ensuring predictable fee structures and reducing volatility risks for users. Its primary role is to sustain network efficiency while distributing value to stakeholders (Neo Migration Docs).

2. Tokenomics & Distribution

GAS is algorithmically generated at 5 GAS per block, with allocations split:
- 80% to voters – Incentivizing governance participation.
- 10% to NEO holders – Passive rewards for token retention.
- 10% to council members – Compensating network validators.
NEO holders automatically accrue GAS over time, creating a symbiotic relationship between the two tokens. Exchanges like Upbit distribute GAS weekly to NEO holders, reinforcing its utility (Upbit Notice).

3. Key Differentiators

Neo’s dual-token system (NEO for governance, GAS for operations) avoids conflating voting power with transactional costs—a design choice that contrasts with Ethereum’s single-token model. GAS also powers Neo’s migration to N3, where users receive bonuses for early token transfers, highlighting its role in network upgrades (Neo Migration Incentives).

Conclusion

GAS is Neo’s economic backbone, balancing transactional utility, governance rewards, and stakeholder alignment. As Neo phases out its Legacy network, how will GAS adapt to maintain relevance in a multi-chain ecosystem?