What Is Gas

Definition of Gas

Gas (GAS) is the native utility token on the NEO blockchain, used primarily to pay for transaction fees and smart contract executions.

Origin and Background

Gas emerged as part of the NEO ecosystem, originally launched in 2014 as Antshares before rebranding to NEO in 2017. Founded by Da Hongfei and Erik Zhang, the project aimed to create a smart economy platform blending digital assets, identities, and contracts. Gas serves as the fuel for NEO's operations, distinct from NEO, which represents ownership and governance rights.

Core Concept and Ecosystem

At its core, Gas incentivizes network participation by covering computational costs. The ecosystem includes decentralized apps (dApps), on-chain governance, and tools like NeoFS for storage. It supports developers building on NEO's N3 version, fostering a vibrant environment for blockchain innovation.

How Does Gas Work

Operational Mechanisms

Gas operates within NEO's blockchain, using a delegated Byzantine Fault Tolerance (dBFT) consensus mechanism for efficient, secure transaction validation without energy-intensive mining.

Technical Principles

Transactions require Gas fees to compensate validators. Smart contracts, written in languages like C# or Python, execute automatically. Public keys enable secure access, while private keys sign transactions, ensuring ownership and preventing unauthorized use.

Fee Structure

Fees include a base amount for basic operations and optional tips for priority. This prevents spam and maintains network efficiency.

How Is New Gas Created

Issuance Method

New Gas is generated automatically as a dividend for NEO holders, proportional to their holdings.

Mining and Staking Mechanisms

Unlike Proof-of-Work mining, Gas accrues through staking NEO in wallets or via governance participation. Council members also earn Gas rewards.

Supply and Reward Model

There's no fixed total supply; Gas is inflationary but decreases over time. Rewards encourage long-term holding, with distribution tied to NEO's 100 million cap.

The Use Cases of Gas

Transaction and Smart Contract Fees

Gas pays for executing transactions and deploying smart contracts on NEO, essential for dApps and token operations.

Governance and Incentives

It rewards participants in on-chain voting, aligning interests in network decisions.

Broader Applications

Beyond NEO, Gas supports decentralized storage via NeoFS and can facilitate cross-chain interactions, aiding in DeFi and asset tokenization.

Buy, Send, or Store Gas

Purchasing Channels

Buy Gas on exchanges like WEEX, which offers a trusted platform for trading. Register on WEEX to earn a free 20 USDT bonus, making it easy to start.

Wallet Types and Storage

Use hot wallets for quick access or cold wallets for enhanced security. Store private keys offline to protect against hacks.

Operational Processes

To send, input the recipient's address and confirm with your private key. Always double-check details for safety. https://www.weex.com/how-to-buy

Pros & Cons / Risks

Pros

- High efficiency with low fees on NEO's network. - Strong security via dBFT consensus. - Incentives for holders through automatic generation.

Cons / Risks

- Price volatility tied to NEO's performance. - Regulatory uncertainties in crypto markets. - Technical risks like smart contract vulnerabilities. - Dependence on NEO ecosystem adoption.

Comparison

Gas vs. Ethereum Gas

Unlike Ethereum's gas paid in ETH, NEO's Gas is a separate token, offering distinct utility and generation via holdings. This makes it more user-friendly for fees, while Ethereum focuses on broader DeFi scalability.

Conclusion / Next Steps

Future Potential

Gas holds promise with NEO's upgrades, potentially growing in DeFi and governance amid blockchain adoption.

Practical Suggestions

Review NEO's whitepaper and roadmap for insights. Join communities to stay updated—check it out for deeper engagement.

Market & Ecosystem

Market Cap & Trading Volume

As of 2025-09-05, Gas has a market cap of $209,014,343 USD and 24-hour trading volume of $6,378,171 USD, ranking #197.

Exchanges Where It’s Listed

Available on major platforms including WEEX for secure trading.

Community Size & Activity

Active on Twitter, Reddit, and Telegram, with thousands engaging in discussions on NEO developments.

Ecosystem Growth

Expanding through partnerships and high developer activity, focusing on dApps and storage solutions.