neo tokenomics

Kenodux Fisheries #TONy: Neo Tokenomics: Understanding the $NEO and $GAS Dual Token System $NEO represents a share in the Neo blockchain. It gives holders governance rights, allowing them to vote on important decisions like protocol upgrades and council elections. The more $NEO one holds, the more influence they have in the governance process. $NEO is indivisible, meaning it can only be transacted in whole units. This is by design to keep it as a representation of ownership and governance power within the network $GAS is the token used to pay for transaction fees and the execution of smart contracts. This includes the deployment of dApps, transfers of assets, and other operations on the Neo blockchain. Unlike $NEO, $GAS is divisible, allowing for micro-transactions and greater flexibility in handling network fees. The Relationship Between $NEO and $GAS Holding $NEO generates $GAS as rewards over time. This incentivizes holding and staking $NEO, as it provides a passive income stream. The amount of $GAS generated depends on the total supply of $NEO and overall network activity. The Deflationary Mechanism of $GAS The Neo ecosystem incorporates a token-burning mechanism for $GAS, reducing its supply over time. This approach aims to balance the supply of $GAS as demand for transaction fees increases, helping to stabilize and potentially increase its value. @neo_blockchain #neo neo.org