Gas(GAS)

Overview

GAS is one of the two native tokens of the NEO blockchain and is used to pay network fees. Sending transactions, executing smart contracts, and issuing assets on NEO all require fees denominated in GAS. While NEO represents governance rights and a stake in the network, GAS functions as the utility token that pays for the use of network resources.

GAS is not mined; it is generated with each new block and distributed to addresses holding NEO. NEO uses a delegated Byzantine Fault Tolerance (dBFT) consensus algorithm, under which NEO holders receive GAS in proportion to their holdings and consensus nodes also receive a share of fees. NEO's total supply is fixed at 100 million units, whereas GAS continues to be issued as blocks are produced, with a portion of the fees paid to the network burned or redistributed.

With the upgrade to Neo N3, the GAS distribution structure and fee model were revised; NEO is indivisible below its smallest unit, while GAS can be divided to eight decimal places. Demand for GAS is structurally tied to activity on the NEO network, including transaction volume and smart contract usage.