What Is Neo (NEO) and How Does It Work?
Neo is a decentralized, open-source blockchain platform designed to build the “Smart Economy” by integrating digital assets,
smart contracts, and
digital identities. Originally launched in 2014 as AntShares and rebranded as Neo in 2017, it was one of the first public blockchains to emerge from China. Neo uses a unique dual-token model: NEO is used for governance and
staking, while GAS is used to pay for transaction and smart contract execution fees.
Neo operates on the Neo N3 mainnet, its most advanced version, which supports high throughput (up to 10,000 transactions per second), native oracle services for off-chain data, decentralized storage, and a powerful smart contract system. Unlike Proof-of-Work or
Proof-of-Stake, Neo uses Delegated Byzantine Fault Tolerance (dBFT) as its consensus mechanism, offering faster finality and enhanced security.
Neo also supports multiple programming languages through compilers like C#, Python, Java, and Go, making it highly developer-friendly. With built-in features like NeoID (digital identity), NeoFS (decentralized storage), and Neo
Oracles, the platform is geared toward enterprise adoption and scalable
dApp development.
When Was Neo Launched and Who Founded It?
Neo was founded in 2014 by Da Hongfei and Erik Zhang in China under its original name, AntShares. It was the country’s first public blockchain project, developed by Onchain, a blockchain R&D company also co-founded by the same team. In 2017, AntShares rebranded to Neo, aiming to create a “Smart Economy” by combining blockchain with digital identity and smart contracts.
The project gained global recognition during the 2017 crypto boom, often dubbed “China’s
Ethereum” due to its smart contract capabilities. In 2021, Neo launched its major protocol upgrade called Neo N3, which introduced significant improvements including native oracles, decentralized storage (NeoFS), improved governance, and enhanced development tools. The N3 upgrade also prompted a token migration from the original Neo Legacy chain.
Neo Roadmap Highlights
• 2014: AntShares founded
• 2016:
Mainnet launch of AntShares
• 2017: Rebrand to Neo; NEO and GAS token model introduced
• 2018–2020: Developer ecosystem expansion and dApp partnerships
• 2021: Neo N3 Mainnet launch and token migration
• 2022–2025: Focus on ecosystem growth, tooling,
DeFi, NeoFS adoption, and cross-chain interoperability via Poly Network
What Are the Main Uses for NEO Token?
The NEO token is primarily used for governance and staking on the Neo blockchain. Holding NEO allows users to vote on network proposals and participate in consensus by selecting Neo Council members. Additionally, simply holding NEO in a compatible
wallet passively generates GAS tokens, which are required to pay
transaction fees and execute smart contracts on the network.
You can trade NEO tokens on the
BingX Spot Market by logging into your account, searching for the
NEO/USDT trading pair, and placing a buy or sell order. BingX offers a user-friendly interface with real-time charts,
limit and market orders, and secure wallet storage for easy and safe trading.
What Is Neo Tokenomics?
Neo has a fixed maximum supply of 100 million NEO tokens, all of which were created at launch with no mining. The NEO token is indivisible, unlike most cryptocurrencies, you can only hold whole units (1, 2, 3... NEO), not fractions. Instead of paying for transactions, NEO holders earn GAS tokens, which are used to cover fees on the network.
Here’s how the tokenomics work:
• 50 million NEO were distributed to early supporters during the initial token sale.
• 50 million NEO are managed by the Neo Foundation and allocated for ecosystem development, community incentives, and long-term support.
• Holding NEO in a supported wallet generates GAS tokens over time, rewarding users for securing the network.
• The maximum supply of GAS is 100 million, and it is released gradually through
block generation.
What Is the Difference Between NEO and GAS Tokens?
NEO and GAS are the two native tokens of the Neo blockchain, each serving a distinct purpose. NEO is the governance token, it represents ownership in the network and gives holders the right to vote on key decisions, such as electing consensus nodes and approving protocol changes. It is indivisible, meaning it can only be transferred in whole units (e.g., 1, 2, 3 NEO). Holding NEO in a supported wallet also allows users to earn GAS passively over time.
GAS, on the other hand, is the utility token used to pay for operations on the Neo network. This includes transaction fees, deploying and executing smart contracts, and accessing system resources like oracles and NeoFS. Unlike NEO, GAS is divisible and consumed during network activity. This two-token model separates governance from usage, ensuring that developers and users can interact with the blockchain without needing to spend their voting tokens.
How to Migrate to Neo N3
To access the upgraded features of the Neo blockchain, users must migrate their assets from the Neo Legacy chain to the Neo N3 network. Neo Legacy support will end on October 31, 2025, making migration critical for preserving access to your assets and unlocking the smart contract, oracle, and storage features of Neo N3.
Migrating to Neo N3 is essential to access the full power of the upgraded Neo ecosystem. Here’s a concise guide to help you through the process:
1. Prepare a Neo N3-compatible wallet or exchange: Choose one of the officially supported platforms: NeoLine (Chrome or mobile), Neon Wallet, ONTO, O3, Atomic Wallet, or a custodial exchange handling Neo N3 migration.
2. Initiate migration: On your legacy wallet, connect to the Neo.org Migration Portal or use the built-in “Migration” feature. Select which asset (NEO or GAS) and how much you're migrating, then choose your new Neo N3 address.
3. Pay any necessary fee: If migrating 10 NEO or more (or ≥ 20 GAS), the Neo Foundation currently covers fees. For smaller amounts, a 1 GAS network fee applies.
4. Confirm and wait: Submit the transaction. Assets are delivered to your N3 wallet, typically within one business day, though on-chain finality can take up to 3 days via some wallets.
What Blockchain Networks Does Neo Operate on?
Neo operates on its own native Layer-1 blockchain, known as the Neo N3 network. It is not built on top of Ethereum or any other blockchain but runs independently with its own consensus mechanism, Delegated Byzantine Fault Tolerance (dBFT), designed for high throughput, low latency, and immediate finality. Neo N3 combines smart contract functionality, a dual-token model (NEO and GAS), integrated oracle services, decentralized file storage (NeoFS), and built-in support for digital identities (NeoID). While Neo is not an
EVM-compatible chain, it offers robust interoperability through the Poly Network, enabling cross-chain asset transfers between Neo, Ethereum,
BNB Chain, and others.
Which Wallets Support NEO and GAS Tokens?
You can securely store your NEO tokens on BingX’s spot wallet. BingX fully supports deposits, withdrawals, and seamless trades of NEO and GAS (the latter added in October 2023) via its user-friendly Spot Market, offering built-in wallet management without the need for external tools. This makes BingX a convenient one-stop solution for holding, trading, and managing your Neo assets.
A variety of Neo-specific wallets support both NEO and GAS tokens, offering features like staking, GAS claiming, and seamless migration to Neo N3. Neon Wallet (desktop/mobile) is ideal for claiming GAS and supports Neo N3, Neon X, and Ethereum. NeoLine (browser extension and mobile app) provides GAS bridging to Neo X and includes built-in migration tools. ONTO and O3 Wallets are non-custodial options that support Neo N3 token management and integrate with the official migration portal. For maximum security, Ledger hardware wallets allow cold storage of NEO and GAS via the Neo N3 app when paired with Neon Wallet. Advanced users can also opt for full-node or command-line wallets like Neo-GUI and Neo-CLI, which offer greater control and support GAS claiming and legacy-to-N3 migration.
How Fast Is the Neo Network?
The Neo network is built for high performance, with its latest version, Neo N3, capable of handling up to 10,000 transactions per second (TPS) under ideal conditions. It uses a Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism, which enables fast finality, low latency, and increased security compared to traditional Proof-of-Work or Proof-of-Stake models. Neo’s average block time is around 15 seconds, allowing near-instant transaction confirmation and making it suitable for large-scale dApp deployment, enterprise use cases, and real-time digital payments.
What Are Oracles in Neo?
Oracles in Neo are built-in services that allow smart contracts to access and verify external data from outside the blockchain, such as APIs, web services, or off-chain information. Unlike many other blockchains that rely on third-party oracle networks, Neo features native oracle functionality, enabling contracts to securely request off-chain data directly through the NeoVM (Neo Virtual Machine). This is achieved using a commit-reveal protocol that ensures data integrity and prevents tampering, making Neo's oracle system more efficient and tightly integrated for real-world dApp use cases like price feeds, identity verification, and external triggers.
Is Neo (NEO) a Good Investment?
Neo stands out as one of the earliest and most ambitious blockchain projects to come out of China, with a long-standing commitment to building a full-stack smart economy. Its dual-token model, NEO for governance and GAS for utility, separates decision-making from usage, creating a sustainable and balanced ecosystem. With the Neo N3 upgrade, the network now offers high throughput (up to 10,000 TPS), native oracles, decentralized file storage (NeoFS), and support for mainstream programming languages like C#, Python, and Java, making it attractive to developers and enterprises alike.
From an investment perspective, Neo continues to evolve with a focus on regulatory compliance, enterprise integration, and regional adoption across Asia. The protocol’s built-in features, like on-chain governance, digital identity (NeoID), and seamless cross-chain compatibility via Poly Network, position it as a future-ready platform for real-world applications. With upcoming milestones such as the planned deprecation of the Neo Legacy chain and growing
DeFi and NFT ecosystems, NEO offers long-term potential for both passive GAS rewards and capital appreciation as adoption increases.