Glossary
Neo $GAS grinding done right: A guide for Neo Legacy and Neo N3 users
What is Neo GAS?
GAS is the utility token on the Neo blockchain. It serves as the secondary coin on the Neo network and is used for paying network fees. Recently, GAS prices have experienced a significant increase of over 200% due to the introduction of the new Neo , which utilizes GAS as its primary token. This surge in popularity has sparked interest in GAS, prompting many to wonder how it functions and how they can acquire it.
The Neo Blockchain adopts a dual token model. NEO is the token used for voting, while GAS is the utility token used to pay for network fees. This approach allows users to use the network without diluting their stake in the platform.
GAS Accessibility
The GAS token is less accessible than NEO tokens, creating a significant barrier to Neo blockchain adoption. Often, users have NEO but can’t use the network due to a lack of GAS. It’s uncommon for exchanges to distribute GAS to NEO holders, making a large portion of this currency inaccessible.
Additionally, there are differences between Neo versions. Many people and exchanges still hold Neo Legacy, which has the same value but cannot generate GAS.
GAS Tokenomics
The GAS token is minted every few blocks and burned in every transaction. All system fees—those paid to use the CPU and Disk—are burned. Since the network is generating more GAS than it burns, GAS is currently inflationary. Before the Neo N3 upgrade, GAS had a maximum supply of 100 million tokens. Now, it has a dynamic supply.
If network activity increases, the GAS token could become deflationary.
Neo Legacy vs Neo N3
Neo was one of the first smart contract blockchains. Being one of the first brought challenges related to maintenance and upgrades. One of these upgrades was the Neo N3 upgrade, which changed the network’s tokenomics and introduced new features. Despite continuing to work, the older network, Neo Legacy, no longer generates GAS.
Most older users are still stuck with Legacy NEO. They must migrate these tokens to the N3 network and vote to continue obtaining GAS. Neo Legacy is also found on many exchanges, so users need to know precisely which version of NEO they have.
Identifying Neo Legacy and Neo N3 networks
The easiest way to check if your exchange offers Neo Legacy or N3 Neo is by looking at the withdrawal and deposit addresses. Neo Legacy addresses start with A, while Neo N3 addresses start with N:
- Neo Legacy Address:
AJ1Wj3g4V45ep2qaSf6XJ5Ea7srmn5bF3a - Neo N3 Address:
NiuPq1rfvFuShvQ32xgWn1TeJcGDGsZfvr
Note: Do not send NEO or GAS tokens across Neo versions. This won’t work, and you will lose your funds! Use migration instead.
If your exchange still uses Neo Legacy addresses and another one is not possible, you will need to migrate the tokens yourself.
Migrating NEO from Legacy to N3
If you are stuck on Neo Legacy, don’t worry. It’s possible to migrate your tokens to the new network. The best way to migrate the tokens is to have at least 10 NEO tokens. You don’t have to pay fees if you migrate values above 10 NEO (or 20 GAS). For other amounts, the fee is 1 GAS.
Migrating is easy. First, download a compatible wallet. You can find the best options on the NDapp Wallets page. Make sure you select one that supports both Neo Legacy and Neo N3 networks.
Now, withdraw your Neo Legacy tokens to your wallet. Make sure you are sending them to a Neo Legacy address. Once you have Neo in your wallet, visit the migration website to migrate your tokens. You can also migrate your coins using the Neon Wallet.
Obtaining GAS on the N3 Network
Before you can start mining GAS with your NEO, you will need some funds to pay for network fees. This is required to vote or swap tokens. The only way to swap NEO without having GAS is by using the Gleeder App. Swap at least 1 NEO for GAS using Gleeder.
If your exchange supports N3 GAS, buy at least 1 GAS and send it to your wallet. It will be used to cover the fees. Only having NEO won’t be enough.
Purchasing GAS on the N3 Network
The first option to acquire GAS is to purchase it. If your exchange doesn’t offer GAS, you can use a decentralized exchange, such as Flamingo or ForTheWin, to buy these tokens.
The process is straightforward: visit the Flamingo or ForTheWin website, connect your wallet, and swap your tokens. Do not swap or spend all your GAS: you won’t be able to send transactions if you do that.
Centralized Exchanges are available too. Check NDapp to view a list of compatible exchanges.
Generating GAS on the N3 Network
The only way to generate GAS is to own NEO and participate in network Governance. Neo Legacy users can’t vote, so they must migrate their tokens to generate GAS.
There are two ways to vote. The first is to vote directly on a candidate. You can see a list of available candidates using the Neo Governance website.
The other option is to use Neo Burger. Neo Burger will handle all the voting for you, maximizing your gains. Check out the GAS Calculator to see how much you can make from voting for each candidate.
We recommend Neo Burger for those looking to maximize their profits.
Note: You need to give custody of your Neo to the Neo Burger dApp so it can vote for you.
Claiming GAS
It’s common to see people trying to claim GAS constantly, thinking this would maximize their profits. The result is the opposite. Claiming GAS is a transaction like the others, with a cost. You should only claim GAS when you have to. Otherwise, you are spending money on network fees.
Pro Tip: Sending NEO to yourself will trigger a GAS distribution with slightly lower fees. Diskoo Pro Tip: Casting a vote will trigger a GAS distribution with even lower fees.
GAS Barriers
Despite its benefits, the dual token model has its challenges. One is the difficulties users face in obtaining GAS, a requirement for using the network. Since GAS is not as accessible as NEO, obtaining it poses a significant challenge. However, this restriction can also be an opportunity for early adopters who must navigate an inconvenient path for most people.
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Not Financial Advice
Initially reported 10,000,000 (obtained from Coin Market Cap)
