Introduction:
NEOplatform is the use of blockchain technology and digital identity to digitize assets (stocks, shares, properties, tokens, etc.), the use of smart contracts for digital assets to be self-managed, to achieve "smart economy" with a distributed network.
It wants work with governments to achieve this.
NEO platform has two native tokens, NEO (I will refer to it as NEOcoin) and NeoGas (abbreviated symbol GAS).
GAS is the fuel token for the realization of NEO network resource control. The NEO network charges for the operation and storage of tokens and smart contracts, thereby creating economic incentives for bookkeepers and preventing the abuse of resources.
I am reviewing GAS as a sole investment in order to see its value in contrast to NEOcoin and other cryptocurrencies
Coin Value GAS: 6,8
GAS is the main currency of the NEOplatform, it is used to fuel operational calls in the system, run smart contracts and be used as a currency.
The supply of GAS is low and if this platform is to be successful then the demand for GAS will increase substantially.
NEOplatform has a solid organization behind that is leading it’s development.
The biggest challenge for NEOplatform is that it will need the cooperation of the government to be successful.
If government cooperation fails than it will have a hard competition in the smart contract field with Ethereum, EOS and Cardano.
The PoS system implemented by NEO could lead to some complicated outcomes in the future when NEOcoin holders no longer receive GAS reward but still play an important part in the system.
Network Value GAS: 5
This is not a mineable coin and the distribution of it is given to NEOholders
If you have 1 NEO you will gradually receive 1 GAS over a period of 22 years.
Instead of Miners there are "node operators" that get paid to execute contracts.
The node operators are choosen by the NEOcoin holders by voting.
The changes to the Network and consensus are reached through voting of the NOEholders.
So there is minimal chance to fork NEO by chance.
I'm not a fan of this system because it seems that other than the GAS reward, NEO holders have little reasons to hold their NEOcoins in the future.
This could lead to some complicated outcomes like having node operators buy NEO in order to vote to increase fees and therefore their profit.
But at the moment NEOcoin are in the hands of the organizations that want NEO to succeed. (OnChain, CoF)
Potential Growth GAS: 7
If NEOplatform starts being adopted by large institutions then they need to buy TONS of GAS to run their operation.
The inflation of GAS is relatively low. This can make GAS very scarce and therefore increase the price.
There are many blockers with cooperating with the government.
If this fails then NEO project will compete in the smart contract market with Ethereum and the upcomming Cardano and EOS.
Considering the mess that is government bureaucracy at the moment the value proposition of NEOplatform is to be taken seriously.
They already have a foot in the Chinese and Japanese government.
However, working with government can always be unexpected.
Development Team value: 10
One of the main strengths of NEO is its large development community and several reputable companies working in developing different parts of it. Companies like OnChain (founded), Microsoft China, City of Zion are the developing the platform and they are very active.
Partnerships: 8
Partnering with OnChain, Microsoft China, City of Zion, Hyperledger, the Chinese regional government and the Japanese Ministry of Economy, makes NEO really strong when it comes to synergy opportunities. It is also traded in most crypto exchanges.
Utility GAS: 5
GAS can be used as a currency, to run operations, create assets and smart contracts in the NEOplatform.
But, because there is not many useful assets or smart contract yet on the network then the utility score is lower.
In the moment ICOs are starting to emerge so GAS could be more scarce. But because you can use NEOcoins to exchange for tokens this may not make GAS price rise.
GAS price will rise the moment an institution wants to provide its service on the NEO platform.
Sources:
https://bitcointalk.org/index.php?topic=2057932.0
https://neo.org/
https://trello.com/neo_blockchain
https://github.com/neo-project
https://medium.com/@cityofzion
https://www.reddit.com/r/NEO/
https://neotogas.com/
https://medium.com/@MalcolmLerider/clarification-on-neo-gas-and-consensus-nodes-aa94d4f4b09