About Gas

Gas is a cryptocurrency developed by the Neo Foundation, serving as a utility token within the Neo ecosystem. It functions primarily as a means to cover transaction fees associated with the Neo blockchain. Unlike traditional mining systems that rely on computational power, Neo employs a Proof of Stake (PoS) consensus mechanism, where the ability to process blocks is determined by the number of tokens held by validators. This approach not only enhances energy efficiency but also aligns the interests of token holders with the overall health of the network. Token holders of Neo are rewarded with Gas on a monthly basis, akin to earning interest, which incentivizes participation in the network. Initially, the distribution rate was set at approximately one Gas per day for every 1,000 Neo tokens held, but this rate is designed to decrease over time, reflecting a deflationary model that may be counterbalanced by potential price appreciation. The relationship between Gas and Neo is integral, as the performance and adoption of Neo directly influence the utility and value of Gas within the ecosystem.