How to Get GAS From Holding NEO?
How to Get GAS From Holding NEO?
NEO is a popular cryptocurrency that regularly inhabits the top ten, after emerging in China; NEO has grown to become popular with investors everywhere and the platform looks set to continue to grow in popularity. Part of the reason for the increasing interest in NEO is the fact that it generates a regular payment of GAS, its complimentary currency that can be obtained by all NEO holders. Here’s how.
The NEO/GAS Relationship
NEO is a Chinese cryptocurrency that is often described as the Chinese Ethereum as it also allows smart contracts to be delivered via its blockchain. NEO supports common programming languages such as C# and Java. It allows trade agreements to be written in almost any programming language. While it can be used as a conventional digital currency, it is more suited towards issuing tokens and the enforcement of smart contracts.
GAS is associated with NEO, and similar to the Ethereum network, Gas is the fuel used to send transactions throughout the NEO network. NEO holders are viewed as part owners of the blockchain and as a result, in exchange for holding Neo in a core wallet, they can receive GAS as a dividend payment. GAS is usually earned by holding NEO in an official wallet, though as it can also be bought directly, and there are exchanges that offer to credit their users with GAS payouts.
How it Works
In order to earn GAS, the best method is to transfer your NEO from the Exchange and move it to a NEO wallet. These can be found on the official NEO site. The NEON Desktop Wallet is the easiest to download and get started with. The NEON wallet doesn’t require the entire blockchain to be downloaded and is quite simple to set up. When ready, you start generating GAS as soon as the NEO is in your wallet. It’s generally recommended to handle your own affairs when dealing with cryptocurrencies; however, both Hong Kong-based exchanges, Binance and Kucoin offer to hold their users’ NEO and calculate and pay out the subsequent GAS returns.
Currently, holding NEO on the majority of exchanges does not generate GAS for the user and with each NEO Block being generated, GAS is distributed to all NEO holders. As a result, if you purchase NEO, it’s important to use a specific NEO wallet or keep it on an exchange that pays out GAS.
Keeping track of GAS payments in relation to how much NEO you hold can be a bit tricky. However, the NEO to GAS site allows holders to calculate their dividends. There are two calculation methods. Firstly, the Theory Calculation that shows your GAS Rewards based on the details published in the NEO whitepaper. Here the GAS Reward is based on a 15 seconds block generation rate.
The second method is The Actual Calculation, this shows your GAS Rewards based on the actual block generation rate, which is generally slightly lower than the Theory Calculation. Actual block generation rates vary and depend on the nodes & network; as a result, it’s a good idea to use both calculation methods.