Ontology Gas

Ontology Gas (ONG): Complete Guide to the Utility Token

What is Ontology Gas (ONG)?

Ontology Gas (ONG) is the utility token that powers the Ontology blockchain infrastructure. ONG serves as the transaction fee mechanism and resource management token within the Ontology ecosystem. While the main Ontology (ONT) token represents governance rights and stake in the network, ONG plays the complementary role of fueling all operations on the network, similar to how Gas works for NEO or Ether for Ethereum transactions.

Launched alongside Ontology's mainnet in June 2018, ONG was designed to create a sustainable economic model for the Ontology network. By separating governance (ONT) from utility (ONG), the system aims to provide more stability and predictable costs for using the network's resources.

How Does Ontology Gas (ONG) Work?

ONG functions as the utility token within the Ontology ecosystem through a dual-token model:

Dual-Token Model

The Ontology blockchain operates with two native tokens:

• ONT: The governance token that represents ownership and voting rights
• ONG: The utility token used to pay for operations on the network

When users deploy smart contracts, execute transactions, or utilize network resources on Ontology, they pay fees in ONG. This creates an inherent demand for ONG tokens and helps maintain the network's security and functionality.

Technical Infrastructure

ONG operates on Ontology's high-performance blockchain which uses a modified Delegated Byzantine Fault Tolerance (DBFT) consensus mechanism called VBFT (combining Verifiable Random Function with BFT). This allows the Ontology network to achieve high transaction throughput while maintaining security, with ONG facilitating all activities within this ecosystem.

Staking and Mining Ontology Gas (ONG)

ONG Staking

Unlike traditional staking models, ONG itself isn't staked. Instead, users stake ONT tokens to generate ONG rewards. This unique approach creates a relationship between the two tokens where:

• ONT holders automatically generate ONG over time by simply holding ONT
• The ONG generation rate is proportional to the amount of ONT held
• Users can claim their generated ONG through the official Ontology wallet

By staking ONT in authorized wallets, users participate in Ontology's consensus by selecting consensus nodes, while simultaneously earning ONG as rewards.

Mining ONG

Ontology Gas (ONG) cannot be mined in the traditional sense like Bitcoin or Ethereum. Instead, ONG is generated and distributed through a predetermined schedule tied to ONT holdings. The total supply of ONG is capped at 1 billion tokens, which are gradually released over approximately 22 years.

This generation mechanism can be viewed as a form of "passive mining," where ONT holders receive ONG without needing specialized hardware or actively running mining operations. This approach significantly reduces the environmental impact compared to proof-of-work mining systems.

What is ONG Used For?

Primary Utility Functions

Ontology Gas (ONG) serves several key purposes within the Ontology ecosystem:

• Transaction fees: All operations on the Ontology network require ONG payment
• Smart contract execution: Deploying and running smart contracts costs ONG
• Network resource allocation: ONG payments prioritize access to network resources
• dApp operation: Decentralized applications built on Ontology require ONG for functionality
• Cross-chain operations: Facilitating transactions between Ontology and other blockchains

ONG in the Broader Ecosystem

Beyond basic network operations, ONG plays crucial roles in:

• Supporting Ontology's decentralized identity solutions (ONT ID)
• Powering data exchange protocols within the ecosystem
• Enabling Ontology's decentralized finance (DeFi) applications
• Facilitating payments for oracle services that bring external data onto the network

ONG Distribution and Launch

Initial Distribution Model

Unlike many cryptocurrencies that conducted ICOs, Ontology Gas (ONG) had a unique distribution model:

• The total supply of ONG is fixed at 1 billion tokens
• ONG is generated gradually through ONT holdings, with approximately 16% released in the first year and decreasing generation rates thereafter
• At launch, no ONG was pre-mined or distributed immediately to investors
• The Ontology team and early backers received ONT, which generates ONG over time like all other holders

Generation Schedule

ONG is released according to a decreasing-rate schedule:

• First year: Approximately 16% of total ONG supply
• Each subsequent year: The generation rate is roughly 80% of the previous year's rate
• Complete distribution: Takes approximately 22 years from the 2018 launch

This gradual release mechanism was designed to ensure long-term ecosystem sustainability and prevent market flooding.

Claiming ONG

ONT holders must manually claim their generated ONG through compatible wallets. This claiming process itself requires a small amount of ONG to cover transaction fees, creating an initial bootstrapping challenge that Ontology addressed through various community initiatives.

Trading Ontology Gas (ONG)

Investors interested in Ontology Gas (ONG) can trade it on numerous cryptocurrency exchanges. For those seeking an automated approach to ONG trading, Cryptohopper offers a sophisticated trading bot that can execute ONG trades according to customized strategies. This allows for 24/7 ONG trading without manual intervention, potentially capitalizing on market opportunities at any time of day.

Key Benefits of ONG as an Investment

• Utility-driven demand from the growing Ontology ecosystem
• Fixed supply of 1 billion tokens creates scarcity over time
• Integral part of Ontology's two-token economic model
• Relatively stable price compared to governance tokens due to utility focus

Additional ONG Information

• Ontology introduced a more flexible fee model in later updates, allowing developers to subsidize user fees
• ONG supports sharding capabilities on the Ontology network, enhancing scalability
• The token follows the OEP-4 standard (Ontology's equivalent of Ethereum's ERC-20)
• Cross-chain functionality allows wrapped versions of ONG to interact with other blockchains
• Ontology has implemented fee delegation protocols that allow dApps to pay ONG fees on behalf of users, improving user experience