NeoGas (GAS)

About NeoGas (GAS)

What is NeoGas (GAS)

NeoGas (GAS) is a cryptocurrency token that operates on the NEO blockchain. It is one of two tokens within the NEO ecosystem, the other being NEO itself. While NEO functions as the governance token and provides holders with voting rights, GAS serves as the utility token used to pay for transaction fees, smart contract executions, and decentralized application (dApp) usage on the NEO network.

The NEO blockchain employs a dual-token model, separating the governance role (NEO) from the utility function (GAS). This allows NEO holders to participate in network governance while GAS is used to fuel the operations of the blockchain, making it essential for the day-to-day functioning of the network.

How does NeoGas (GAS) work?

• Utility Token for Network Operations: GAS is primarily used to pay for transaction fees, smart contract executions, and the deployment of decentralized applications (dApps) on the NEO blockchain. Whenever a user performs a transaction or runs a smart contract on NEO, the transaction is paid for using GAS.
• Passive Distribution to NEO Holders: Unlike many tokens that are mined or staked, GAS is passively distributed to those who hold NEO tokens. Each time a user holds NEO, they earn GAS over time. The more NEO tokens a user holds, the more GAS they can accumulate. Additionally, participation in governance activities such as voting may increase the amount of GAS earned, creating an incentive for active involvement in the NEO ecosystem.
• No Need for Staking: GAS is not staked or locked up by holders. Instead, it is automatically distributed to NEO holders as a reward for owning and holding NEO tokens. This design reduces the need for a traditional mining process and helps maintain the network’s scalability and decentralization.

What are the potential use cases for NeoGas (GAS)?

As the utility token of the NEO blockchain, GAS has several important use cases:

1. Transaction Fees:
   GAS is used to pay for transaction fees on the NEO network. Every time a user sends or receives NEO, interacts with a smart contract, or uses a dApp, they pay a fee in GAS. This ensures that the blockchain remains incentivized and that transactions are validated.
2. Smart Contract Deployments:
   GAS is required to deploy smart contracts on the NEO platform. This is essential for building decentralized applications (dApps) on the network, enabling users to automate processes and create complex decentralized ecosystems.
3. Decentralized Application Purchases:
   GAS can also be used to make purchases within dApps built on the NEO blockchain. Whether for accessing premium features or participating in ecosystem activities, GAS functions as the internal currency for these applications.
4. Incentivizing Network Participation:
   The passive distribution of GAS to NEO holders encourages more users to hold and actively participate in the network. Users who vote on governance decisions are rewarded with additional GAS, driving engagement and strengthening the NEO community.

What is the history of NeoGas (GAS)?

• Origins of NEO and GAS:
  NEO, originally known as Antshares, was founded by Da Hongfei and Erik Zhang in 2014. The NEO network was designed to be a decentralized platform for digital assets and smart contracts, with a focus on supporting digital identity and smart economy applications. GAS was created as the utility token to facilitate these operations.
• NEO’s Rebranding to NEO:
  In 2017, Antshares rebranded to NEO to reflect its broader ambitions to build a smart economy and become a major player in the blockchain space. GAS was introduced as the counterpart to NEO, which would serve as the governance token while GAS would be used to pay for transaction fees and other network functions.
• NEO 3.0 (N3) Upgrade:
  In 2021, NEO underwent a major upgrade to NEO 3.0 (N3), which significantly improved the scalability, functionality, and performance of the network. The N3 upgrade introduced new features such as distributed storage, oracles, and name services, making the NEO blockchain more versatile and capable of supporting a wide range of decentralized applications.

  GAS continued to play its crucial role as the fuel for these transactions, further solidifying its importance within the NEO ecosystem.