What is Gas (GAS)?

TLDR GAS is the utility token of the NEO blockchain, designed to pay for transactions, execute smart contracts, and incentivize network participation through a unique dual-token system with NEO.

1. Fuel for NEO’s operations – Powers transactions and smart contracts
2. Reward mechanism – Distributed to NEO holders and governance participants
3. Upgraded tokenomics – Aligns incentives across stakeholders in Neo N3

Deep Dive

1. Purpose & Value Proposition

GAS serves as the “fuel” for the NEO blockchain, funding transaction fees and computational resources for smart contracts. Unlike Ethereum’s gas (denominated in ETH), GAS is a separate token, creating a dual-token model where NEO represents governance rights and GAS enables network usage. This separation allows NEO holders to earn passive income via GAS distributions while retaining voting power.

2. Tokenomics & Governance

GAS has a fixed supply of 100M tokens, with 80% distributed to NEO holders and 20% to the Neo Council for ecosystem development. Under Neo N3’s upgraded model:
- 10% of new GAS goes to council members
- 80% rewards voters who stake NEO
- 10% is distributed equally to all NEO holders

This structure incentivizes active governance participation while maintaining accessibility for passive holders.

3. Key Differentiators

GAS operates on a fee-burning mechanism where 90% of transaction fees are destroyed, creating deflationary pressure. Additionally, Neo N3 introduced a subsidized gas system, allowing developers to sponsor user transactions – a feature that enhances dApp adoption by reducing friction for end-users.

Conclusion

GAS is NEO’s transactional backbone, balancing utility with stakeholder incentives through its dual-token architecture and upgraded governance model. As Neo N3 continues evolving, how might GAS’s role expand in supporting decentralized applications and cross-chain interoperability?