
Want to use NEO smart contracts? Pay $11,500 or invest $1M - dagasoline
NOTE: It seems this hit a nerve because this post was removed from NEO subreddit really fast...<p>I started doing the math after familiarizing myself with how NEO works and seeing the smart contract fees blog post (https:&#x2F;&#x2F;neo.org&#x2F;en-us&#x2F;blog&#x2F;details&#x2F;68) published less than few weeks back.<p>Let&#x27;s say I want to make a simple smart contract for a conference ticket sale. The blog post says GAS fee for creating a contract is 500. GAS = $23 now.<p>GAS = $23 means that 1 smart contract would cost me $11,500 to create.<p>Technically every NEO generates GAS and every NEO is &quot;a vote.&quot; If it costs $11,500 to create a smart contract, you probably shouldn&#x27;t invest in GAS but instead buy NEO and generate GAS, right?<p>According to neotogas.com, you need 35,000 NEOs to generate 500 GAS in ONE MONTH. With $30 per NEO, this means that I would have to own $1,045,660.00 worth of NEOs to get 1 smart contract per a month.<p><i></i>To use NEO for smart contracts, you either pay $11,500, or you invest over $1 million.<i></i><p>Obviously, this won&#x27;t work which means that GAS fee structure won&#x27;t hold. I saw someone guessing that in the future NEOs would set the GAS prices.<p>Here&#x27;s the kicker.<p>If NEOs set the fees, it will follow supply&#x2F;demand against everything else in the market. With ETH etc., realistically smart contract fee can&#x27;t be more than few cents.<p>Why would anybody buy GAS if NEO changes the valuation on the fly?<p>The thing is that NEO is incredibly undervalued because NEO GAS setup splits the market between two tokens.<p>My conclusion based on all this is that GAS is not meant to be traded at all and the trading started simply because GAS could be moved technically. The problem is that the underlying scheme of NEO doesn&#x27;t allow it to have a stable, tradable value. A lot people who hold a lot of NEO probably know this already but won&#x27;t speak out loud because it&#x27;s essentially free money for them.
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tX84
If something gets removed from a subreddit, post it in a different subreddit,
not here.

It looks like you made a reddit post that links to this instead of being a
text post and keeping it there. Not cool.

[https://www.reddit.com/r/CryptoMarkets/comments/73dkqz/want_...](https://www.reddit.com/r/CryptoMarkets/comments/73dkqz/want_to_use_neo_smart_contracts_pay_11500_or/)

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dagasoline
Are you going to keep switching usernames to post this? Just asking so I don't
reply to another deleted comment.

So how is not cool? Because you don't like people using Reddit? There's a lot
of cryptopeople here so it's very relevant. The fact that you don't like that
a post here is being linked from Reddit is completely, utterly irrelevant.

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dagasoline
Comment from another Reddit sub: "Thank you. Someone finally gets it. People
simply do not realize that NEO can simply change the contract price to reflect
whatever they need it to reflect. I remember mentioning this awhile ago that
it made no sense to invest in gas. But oh well."

