# Neo Gas (GAS)

> Neo Gas (GAS) is the fuel token for the Neo blockchain, used to power transactions, execute smart contracts, and incentivize network governance participation.

- Canonical URL: https://iq.wiki/wiki/neo-gas-gas
- Categories: Cryptoassets
- Tags: Token
- Created: 2023-12-05T11:32:32.764Z
- Last updated: 2026-07-12T14:17:25.144Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**NEO Gas (GAS)** is one of two native tokens for the [Neo blockchain](https://iq.wiki/wiki/neo), designated as the fuel token, used to power transactions and execute [smart contracts](https://iq.wiki/wiki/smart-contract).[\[1\]](#cite-id-sensxv0io0s)[\[2\]](#cite-id-te1war22ao)

# Overview

Within the [Neo network](https://iq.wiki/wiki/neo), GAS is intended to cover operational and storage costs for tokens and[ smart contracts](https://iq.wiki/wiki/smart-contract), aiming to deter node resource abuse. System fees undergo [burning](https://iq.wiki/wiki/token-burn), while network fees are designed to serve as incentives for consensus nodes. The minimum GAS unit is 0.00000001, and claiming doesn't mandate [NEO](https://iq.wiki/wiki/neo-token) staking. GAS distribution practices differ among exchanges. A significant portion is intended as a reward for voters actively engaging in network governance, requiring [NEO](https://iq.wiki/wiki/neo-token) holders to use a voting-supporting wallet for participation.[\[3\]](#cite-id-go4776mvtsv)[\[4\]](#cite-id-bmp33socxz)[\[5\]](#cite-id-n9q0zvm15e)

# GAS Distribution to Users

Exchanges decide whether to distribute GAS, intending it as compensation to the [Neo blockchain](https://iq.wiki/wiki/neo) for recording and additional services. GAS, symbolizing the right to use the [Neo Blockchain](https://iq.wiki/wiki/neo), is systematically generated upon obtaining [NEO](https://iq.wiki/wiki/neo-token). In Neo N3, GAS is automatically claimed during [NEO](https://iq.wiki/wiki/neo-token) transfer transactions at an address. The claimed GAS amount is determined by a fixed formula based on the duration between a user's [NEO](https://iq.wiki/wiki/neo-token) transfers into and out of their address. For exchanges with consolidated addresses, the distribution process to a user is outlined, with precision improving in shorter snapshot intervals. Automatic GAS claiming occurs seamlessly as users transfer [NEO](https://iq.wiki/wiki/neo-token) into or out of their addresses.[\[6\]](#cite-id-0gm6nsz2dnfd)

# Migration

N3, an upgraded version of [Neo](https://iq.wiki/wiki/neo), introduced improvements in development experience, features, and economic models. Certain features are not compatible with [Neo Legacy](https://iq.wiki/wiki/neo), leading to the N3 upgrade through a new [genesis block](https://iq.wiki/wiki/genesis-block), coexisting with [Neo Legacy](https://iq.wiki/wiki/neo) for an extended period. Users can migrate [NEO](https://iq.wiki/wiki/neo-token) and GAS tokens from [Neo Legacy](https://iq.wiki/wiki/neo) to N3 at a 1:1 ratio using a [Neo](https://iq.wiki/wiki/neo) N3-compatible wallet or supported exchange. Migration involves creating a new address on N3, sending tokens to a migration contract, and receiving equivalent tokens in the new address. Options include native migration support in wallets or using exchanges (with timeframes beyond [Neo's](https://iq.wiki/wiki/neo) control). A migration deadline will eventually exist, remaining open as long as the [Neo Legacy network](https://iq.wiki/wiki/neo) is operational. Fees apply on N3 for amounts below 10 [NEO](https://iq.wiki/wiki/neo-token) or 20 GAS and on Neo Legacy for complex transactions. N3 does not adopt the [UTXO model](https://iq.wiki/wiki/unspent-transaction-output-utxo).[\[7\]](#cite-id-ql80lg5sqh)

# Allocation

Initially, 5 GAS tokens per block are generated and distributed to the [Neo](https://iq.wiki/wiki/neo) Committee, [NEO](https://iq.wiki/wiki/neo-token) voters, and all [NEO](https://iq.wiki/wiki/neo-token) holders. The distribution follows these rules:

* **[NEO](https://iq.wiki/wiki/neo-token) Holders (10%)**: GAS is calculated and distributed to [NEO](https://iq.wiki/wiki/neo-token) holders based on their holding period after completing NEO transfers or voting.
* **Committee & Consensus Nodes (10%)**: This portion rewards the 21 committee members managing the [Neo blockchain](https://iq.wiki/wiki/neo). Every 21 blocks (Epoch), votes are recalculated, and shares are redistributed. The speaker also receives network fees for the current block's transactions.
* **Voters (80%)**: The majority of GAS incentivizes [NEO](https://iq.wiki/wiki/neo-token) holders to vote for committee members. Rewards, calculated and distributed during each 21-block epoch, are divided by 28 (21 for committee members, 7 for consensus nodes). Voters for elected consensus nodes get 2/28, while voters for non-consensus committee members receive 1/28 of this portion.[\[8\]](#cite-id-qluln1ltn1)