$GAS grinding done right: A guide for everyone

Mar 12, 2024 5:00:39 PM

What is GAS?

Despite being a secondary coin on the network, the GAS prices have increased over 200% since the announcement of the new Neo , using GAS as its primary token. This has drawn attention to this currency, but how does it work, and most importantly, how to get it?

The Neo adopts a dual token model, where NEO is the token used for voting, while GAS is the utility token used to pay for network fees. This approach allowed the usage of the network without diluting the user’s stake in the platform.

GAS Accessibility

The GAS token is less accessible than the NEO tokens, making it one of the most considerable barriers to Neo blockchain adoption. Often, users have NEO but can’t use the network due to a lack of GAS.

It’s not common for Exchanges to distribute GAS to NEO holders. This makes a large portion of this currency to be inaccessible.

Lastly, 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 the system fees — those you pay to use the CPU and Disk — are burned. Since the network is generating more GAS than it burns, GAS is currently inflationary. However, despite having an infinite supply, it now has around 65% of the Neo supply, around 65.000.000.*

If the network activity increases, the GAS token can become deflationary.

Neo Legacy vs Neo N3

Neo was one of the first smart-contract blockchains in the world. Being one of the first also brings challenges related to maintenance and upgrades.

One of these upgrades was the Neo N3 upgrade, which moved Neo to a new, more robust technological foundation. 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 to obtain GAS. Neo Legacy is also found on many exchanges, so you need to know precisely which version of NEO you have.

Identifying Neo Legacy and Neo N3 networks

The easiest way to check if your exchange offers you 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 AJ1Wj3g4V45ep2qaSf6XJ5Ea7srmn5bF3a

Neo N3 Address: NiuPq1rfvFuShvQ32xgWn1TeJcGDGsZfvr

Note: Do not send NEO or GAS tokens across different Neo versions. This won’t work, and you will lose your funds! Use migration instead.

If your exchange is still using Neo Legacy addresses and using 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 migrate 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 it to a Neo Legacy address.

Once you have Neo on your wallet, visit the migration website to migrate your tokens. You can also use the Neon Wallet to perform the migration.

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 by purchasing 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.

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 by owning NEO and participating in the network Governance. Neo Legacy users can’t vote, so they must migrate their tokens to generate GAS!

There are 2 ways to vote. The first one 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 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 like 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 having its benefits, the dual token model has its challenges. One is the difficulties users face in obtaining GAS - a requirement for those looking to use 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 have to go through an inconvenient path for most people.

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Not Financial Advice

Initially reported 10.000.000 (obtained from Coin Market Cap)

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