Its a form of Proof of Stake and many other platforms and coins are rushing to copy this model.
Gas dividend of min 4% year per every Neo held. Its a slick deal. Gas price moves at about 40-50% of Neo price.
Gas is the fuel that runs the network so dAPP users must purchase Gas. More dApps and more dApps usage more Gas required. More Gas required price goes up. That means Neo price goes up. When Neo price goes up Gas price goes up as well as it is 4% dividend.
Neo coin holders get to vote on the dividend structure .
It’s all here in green and white.
Do you see why Neo will quickly become a rare and coveted commodity?
100 million coins is 1/10 of most of the competitors coin issuance. Also most coins have an annual amount they will mine. Neo’s total number on the otherhand is fixed like Bitcoin. There will only ever be 100 million Neo. Supposedly the average holding is 50 Neo but of course many of the coins are held by founders or are being accumulated by ‘whales’ (it sounds conspriacy theoryish but I have actually observed the ‘whales’ using bots on the exchanges to suppress price in a precise range of 10 USD over a period of days and accumulate Neo). Certainly there are funds or individuals intent on accumulating Neo already to drive the price up.
There will be a demand/supply crunch with Neo that will cause it to rocket up at some point. As good investors and commodity dealers should know PRICING IS SET ON THE MARGINS BETWEEN DEMAND AND SUPPLY. This is not like stocks where you can just to do a stock split. There is no way to dilute Neo.
This is why I am very interested in PoS coins. Nav , Stratis, Ven…and more.
They have lower market cap so possibly more room to grow your funds as you can get in a bit earlier. For a small investment they have plenty of room to grow.
I’ve invested in Neo though cos it’s got a huge first mover advantage and excellent developer community and leadership council and aforementioned limited coin issuance.
PS Gas itself is much rarer than Neo.
Currently there is a circulating supply of 9 million Gas coins. Each Neo can mint only 8 Gas coins over the full lifespan of Neo coins (22 years).
Some think Gas price could skyrocket in the first few years as usage increases. It has a reciprocal relationship, you can read about it at neo.org. I prefer holding Neo coins as I think people prefer to have ownership of a stock in general. After all Neo will be giving you that precious Gas for doing nothing at all!
If you analyse these numbers you may understand why I am slightly obsessed with Neo.