Neo is a cryptocurrency which is included among the top 20 cryptocurrencies on the coin market cap. This cryptocurrency is known as the Chinese version of Ethereum. In this post, we will be particularly talking about why Neo mining doesn’t work and how difficult it is to mine Neo.
Looking at the Neo’s official website, we come to find out that the company describes itself as a non-profit community-based blockchain project that utilizes the blockchain technology as well as digital identity to digitize assets, to automate the management of digital assets using the smart contracts and to realize a ‘smart economy’ with a distributed network.
Neo was previously known as AntShares and was founded by Da HongFei and Erik Zhang in 2013. It was then officially launched as a company in 2014. Since its ICO, this cryptocurrency received a lot of attention and soon it was called as the Chinese Ethereum.
However, the company couldn’t manage to leave a significant impact on the global financial market. It was then when the founders decided to rebrand the company and named it as NEO. The word NEO has been derived from the Greek language which means new.
As soon as the company was rebranded, NEO gained popularity and soon became the first ever decentralized, open-source blockchain platform as well as cryptocurrency to be introduced in China. NEO was basically China’s response to Ethereum.
Currently, NEO is ranked among the top 20 cryptocurrencies on the coin market cap, with its price set at $16.32. This cryptocurrency definitely has the opportunity of becoming a significant digital currency in the coming time.
Understanding Neo Mining
Now let us get to understand why NEO cannot be mind. Unfortunately, unlike many other leading cryptocurrencies, Neo cannot be mined. Yes, it is non-mineable. However, that doesn’t stop you from not earning anything from the NEO network.
In fact, the more NEO you own, the more GAS tokens you will be able to earn. GAS is the token required to run the NEO network.
In the genesis block, there is a total of 100 million NEO that was created. Of the 100 million NEO, 50 percent were already taken initially by the investors and the remaining 50 percent were locked into a smart contract. 15 million tokens are now released every year.
The important point to mention here is that GAS was not made in the genesis block. Instead, GAS is slowly produced over the course of twenty-two years. The amount of GAS a user gets per NEO has slowly started to decrease. This means GAS is slowly decreasing so it is going to take many more years for its amount to grow to its full capacity which is of 100 million.
NEO is a cryptocurrency which is already fully pre-mined. The NEO holders are entitled to get only a cut of the transaction fees. They are going to be paid GAS tokens in the form of dividends. 1 NEO will give you 1 GAS over the course of twenty-two years. The more NEO you own, the more GAS you will be getting per day. Once GAS is spent, it gets recycled into the system which means the more GAS is consumed, the more it will be able to get recycled and given to all the NEO holders.
It is important to understand that NEO cannot be divided as it acts like a share, a security in a company. However, GAS can be divided as it is used as a form of dividend or payment.
NEO is capable of distributing GAS tokens to their users and by doing so, it proves the owners have ownership of an asset rather than the asset per se. This is done in order to make the transfer of assets, equity and shares easy and straightforward.