GAS is a token operational in the NEO eco-system. Its primary function is to incentivize both miners and users by “fueling” the operations. GAS is generated as the NEO blockchain extends in blocks.
Every Neo has two states, unspent and spent, the same as every Gas has two states, which are available and unavailable.The two tokens are interdependent.
The life cycle of Neo starts when it gets transferred into an address and ends when it gets transferred out from that address. When it is transferred in, its state becomes unspent and when it is transferred out, its state becomes spent.
It means that once in your wallet, your NEO becomes "active at generating GAS", and GAS is being produced while you're holding NEO in your wallet. However, you will not be able to get your GAS until you transfer out your NEO. Remember, that GAS is only produced when new blocks are added to the NEO blockchain and if there are no movements of NEO, there are no operations to record and hence no new blocks produced.
Technically, the process is the following:
- When you transfer your NEO into your wallet, it assumes an “unspent” state.
- Now GAS starts generating and it will remain in the “unavailable” state until you withdraw your NEO (and it assumes the “spent” state).
- Once your NEO is out (it now assumes a “spent” state”), you can get access to your GAS, which is now “available”, and withdrawable.
Each new NEO block produces 8 GAS. And it has to be divided among all NEO holders in the world. As people hold NEO for different periods of time and in different amounts, there’s a specific and universal formula to calculate how much GAS a user should get for their NEO.
Total Gas Distribution per month will depend on the blocks generation rate over the period of the past month.
Neo user positions = Daily amount of Neo being held by the user in his Trading Wallet.(Reserved Neo balance from open orders is not included).
Daily Positions for all Lykke Neo users = Daily amount of Neo being held by all Lykke Neo users.
(Total Gas Dist. × ∑ Daily Neo User positions)
Gas = ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯
∑ Daily Neo positions for all Lykke users
The reserved NEO balance from the open orders, will not be taken into consideration to calculate the user’s NEO balance.
- Users' daily NEO balance snapshots will be taken at 13:00 UTC.
- Gas distribution will be run the first day of every month starting at 16:00 UTC*.
Each distribution will take into account NEO balances and claimed GAS of the entire period from the previous distribution (including the first day of the current month and excludes the first day of the previous month).
* Gas distribution is executed not exactly at 16:00 UTC, but before the end of the same day.