Gas (GAS)

The role of GAS is comparable to transaction fuel in other smart contract ecosystems. Users and developers need it to pay network fees, execute smart contracts, and interact with applications deployed on Neo. This separation between governance and usage is a defining feature of Neo’s token model: NEO is used for voting and participation in network governance, while GAS is consumed for computation and transaction activity.

Neo does not rely on energy-intensive proof-of-work mining. Its consensus system is based on delegated Byzantine Fault Tolerance, under which approved consensus nodes validate blocks. GAS is generated according to the protocol’s economic design and is distributed in connection with NEO ownership and governance participation, creating a link between the two assets. As network use rises, demand for GAS can be influenced by the volume of transactions, smart contract execution, and broader developer activity across the Neo ecosystem.

For investors and users, GAS is closely tied to the health of Neo itself. Its utility is strongest when the underlying chain attracts applications, users, and on-chain activity. Rather than serving mainly as a governance token, GAS exists to keep the network operating and to price the computational resources required by Neo-based services.