Question 1

What is GAS, and how does it differ from NEO?

Accepted Answer

GAS is the native utility token of the Neo N3 network, used primarily to pay fees required for on-chain transactions and smart-contract execution. It differs from NEO: NEO is the governance token, while GAS is the fee asset consumed when the network operates; the two are not interchangeable. This dual-token arrangement separates governance rights from the cost of using the network. Holding or voting NEO involves governance and GAS-generation distribution, while users pay GAS when initiating transactions or deploying or invoking contracts.

Question 2

What fees does GAS pay for?

Accepted Answer

On Neo, GAS pays network fees, including resource consumption for ordinary transaction processing and smart-contract execution. The purpose of fees is not simply to transfer tokens, but to have users pay for the resources used by the network to process their requests. The amount of GAS ultimately needed depends on the operation performed and its resource requirements; a simple transfer and an operation involving contract execution therefore do not necessarily use the same fee. Fee rules are jointly determined by network mechanisms and governance-related parameters.

Question 3

Where do paid GAS fees ultimately go?

Accepted Answer

Paid GAS does not all go to the same place. System fees are burned, while network fees are paid to the consensus nodes that process transactions; the two serve different functions, so “paying GAS” should not be understood wholesale as node income. Burning system fees reduces the supply of that portion of paid GAS, whereas network fees compensate consensus nodes for processing network requests. Which fees a particular operation includes depends on the nature of its transaction and contract execution.

Question 4

How is GAS generated and distributed?

Accepted Answer

GAS is generated under Neo N3 rules and is associated with NEO holding and voting mechanisms. It is not a proof-of-work reward earned through user mining; official materials describe it as an asset generated by the network and distributed to NEO holders and voting-related participants. Generating GAS and spending GAS are two different stages: the former concerns network issuance and distribution rules, while the latter occurs when users use the network and pay fees; a portion of system fees is then burned. The amount of NEO held alone cannot determine the specific amount of GAS that an address must have become eligible to claim at a particular time.

Question 5

When is GAS automatically claimed in Neo N3?

Accepted Answer

In Neo N3, when an address receives or sends NEO, generated but unclaimed GAS is automatically claimed to that address. This design associates the claim action with a change in the NEO balance rather than requiring a separate claim transaction every time. The trigger here is an incoming or outgoing NEO transfer, not an arbitrary GAS transfer; what is automatically claimed is the GAS generated under the rules for that address and not yet claimed. Whether a specific wallet or exchange displays or handles this in the same way depends on its own support.

Question 6

How do GAS generation, payment, and burning jointly affect supply?

Accepted Answer

Changes in GAS supply are jointly affected by generation, fee payments, and system-fee burning. Generation adds GAS to the distribution process under network rules; when users pay network fees, the system-fee portion is burned and the network-fee portion is paid to consensus nodes. Therefore, GAS should not be viewed only as a “fixed-distribution reward”: its economic path also includes fees and burning generated by actual network use. Net supply or circulation changes for a given period require calculation using generation, payment, and burn data for that period, rather than being derived directly from a single rule.

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