NEO is a cryptocurrency project that was launched in 2016 in China as a rival to Ethereum offering similar functional features under the name of Ant Shares and nicknamed Chinese Ethereum and Ethereum Killer. In 2017, the project was rebranded and the coin was named NEO. The uplimit for the issuance of NEO is 100 million coins.
In essence, NEO is a digital, decentralised ledging network with smart contracts and a platform for decentralised applications based on the proof-of-stake consensus. Using the NEO blockchain, its users can make digital assets out physical ones through smart contracts, i. e. tokenise them, develop Dapps and stake NEO coins for passive income generated in GAS – another cryptocurrency distributed as a block reward in the NEO blockchain.
The reward for new NEO blocks in 2019 is 8 GAS, the blocks are generated every 15 – 20 seconds and the uplimit for the emission of GAS constitutes 100 million coins as well as for NEO. Every year, the block reward decreases in order to provide an upkeep for the price of GAS and make the reward process last longer. The suggested term at the end of which the GAS issuance stops is 22 years.
GAS and NEO are different cryptocurrencies that go in tandem. NEO is a platform that acts as an allround cryptofinancial platform combining smart contracts, tokenisation of assets, Dapps and the digital identity. GAS is a cryptocurrency that is given to NEO owners as a reward for their stake in NEO.
In order to receive a passive income from NEO, firstly, you will need to get some NEO (the simplest way to do that would be to buy it on a cryptocurrency exchange). Secondly, you will need to install a NEO-compatible wallet. We suggest using a cold atomic wallet for security.
Thirdly, install the Neon wallet to your computer for GAS. Because it is the only wallet that can receive GAS. But it will act fully automatically once you complete the installation process and sync the two wallets.
In order to receive the GAS reward for staking your NEOs, we recommend using the Atomic Wallet for several reasons: it supports all major cryptocurrencies and lots of less popular ones, it provides anonymity to its owner and it works on a decentralised network. Also, a huge plus of using the Atomic Wallet is that you will not have the need to use the Neon wallet, which is otherwise necessary for generation and storage of GAS. In order to download the Atomic Wallet proceed to http://atomicwallet.io.
After you install the Atomic Wallet you will need to transfer your NEOs to a NEO account in it the address for which will be generated automatically. As with most cryptocurrency wallets, it will be your obligation to keep secure your private key to the wallet because if you lose it you will lose access to your wallets and funds in it forever.
The GAS reward will be generated some time after you top up your NEO wallet. The amount of time will depend on how much NEO you stake. In order to withdraw the generated GAS, you will simply need to send NEO to yourself with zero fees and GAS will be automatically claimed.
Thereupon, you can spend it on a cryptocurrency exchange where GAS is listed and convert it into a fiat currency or a different cryptocurrency. You can convert it into NEO, too, to top up your NEO account and grow the passive earnings in GAS.