Most blockchain platforms are trying to adapt business use cases for blockchain. NEO actually takes the other approach, and has built a blockchain platform that is adapted to business use cases. They link the real economy and the digital economy. Welcome the smart economy.
NEO GAS is a currency which is distributed by holding NEO in your wallet. It’s used to fuel transactions on the NEO blockchain. With each NEO Block getting generated, GAS will be distributed to all NEO holders. So basically it adds a dividend play to your crypto game. Check this link to calculate your dividend.
If you sell your GAS and buy more NEO with the proceeds, you end up with a larger stack of GAS-producing NEO tokens (same as with re-investing your dividends in more of the dividend producing stock).
Note that you should not buy NEO on BITTREX. (Binance being our alternative). There is NO way to collect GAS if you have NEO on BITTREX.
If you do, you could consider selling your NEO on BITTREX for ETH, transfer the ETH to Binance and rebuy NEO. You might lose some money that way, but at least you unlock your NEO and release GAS payout. Even better, NEON wallet also works with Ledger Nano S. By far the best way to store your NEO’s.
They way we see it, NEO is a bit like a Mining rig and GAS is your Ether.
According to CNBC, a two-year lease on the machine will cost $3,400, and the company estimates that it will produce a monthly revenue of $375 worth of bitcoins, or $9,000 over the course of the lease. There’s a catch, however. In addition to paying the $3,400 lease, users will be required to return half of the profits to Kodak, reducing their estimated revenue from $9,000 to $4,500.
We wonder who will fall for this. I wish Kodak would stick with producing analog film. But for anyone who is keen to start mining it might be a ticket to support the Bitcoin project (and Kodak). Power it up with a Tesla Solar Roof.
Another recent headline news item is “Chinese money dominates bitcoin.” Most of the miners are located in China and now looking at Canada because China feels they are wasting too much energy. Running the bitcoin network uses up as much yearly electricity as a medium-sized country. This is exactly the reason why the Proof-Of-Stake concept sounds look like a smart move.
China appears to be clamping down on Chinese miners, an important group estimated to produce some three-quarters of the world’s supply of BTC. (decentralized?)
Staking is where coin holders put their coins in a PoS compatible cryptocurrency wallet. They earn rewards for supporting the network. And doing so, avoid the spicy electricity bill associated with mining BTC.
Today, there are hundreds of cryptocurrencies using PoS. ETH will soon launch Casper, to initiate the PoS evolution.
There are few more currencies that provide staking rewards, but the rewards are too low. Could NEO be the #1 ?