Gate.io Releases GateToken (GT) Q1 Burn Report as Web3 Development Ramps Up
One unique trait that sets cryptocurrency apart from fiat currency is its stable and predictable supply control that can counteract inflation and subsequent devaluation. Bitcoin achieves it through halvings and a finite 21,000,000 max supply. While for Ethereum, supply control is achieved through burning, a term for permanently removing tokens from circulation.
Like Bitcoin and Ethereum, GT (GateToken) uses a supply control mechanism, burning portions of its circulating supply. The most recent burn report shows that an astounding 1,954,153 GT tokens were burned in Q1 2023, translating to roughly 2% of the circulating supply at the time. These burns are essential in managing the circulating supply and counteracting inflation through deflation. Further, they can add positive pressure on the market.
How GateToken burns tokens
Since its launch in 2019, GT has burned around 50% of its total supply or ~160 million tokens. As a result, the current circulating supply now sits at approximately 110 million.
Currently, the burn mechanism is not automated. However, GateToken recently announced that it would implement an auto-burn mechanism later this year. The mechanism will be similar to Ethereum’s in that a portion of network gas fees from each transaction will be removed from circulation. Although the new auto-burn mechanism has already been developed, it is currently undergoing testing before it hits the testnet and then the mainnet later in 2023.
The perks of a GT holder
GT is the native token of GateChain, a decentralized public blockchain, and the exchange token of the global crypto exchange Gate.io. The token serves as a means of value transfer and gas fee payments on GateChain and other bridged chains.
GT is also a utility token that provides holders with exclusive benefits on the Gate.io exchange. These benefits include discounted trading fees, exclusive activities, and eligibility for Gate.io’s VIP program that provides access to new token listings and launches, among other benefits. In addition, GT holders can utilize the tokens for stablecoin borrowing, liquidity mining, and accessing financial products like HODL & Earn, which offer steady returns for locking up assets.
GateToken and Web3
In addition to the upcoming auto-burn mechanism, GateToken will play a central role in future upgrades to the GateChain and Gate.io ecosystem. Specifically, Gate Web3 will utilize GateChain’s highly efficient blockchain that features low-cost transactions and high throughput, with GT playing an integral role in the decentralized ecosystem. Soon, Gate Web3 will bring many decentralized applications to the Web3 landscape, including decentralized perpetuals exchange, cross-chain swaps, NFTs, and more.