Gate.io Releases Q2 GateToken (GT) Burn Results, Over $40 Million Burned so far in 2022
In the second quarter of this year, GateToken’s (GT) buyback and burn program reached over $17 million in total value burned. Combined with the first-quarter results, the entire supply reduction topped nearly $40 million worth of GT burned so far this year.
Since 2020, Gate.io has allocated 20% of platform profits to repurchasing GT tokens off the market and permanently removing them from the circulating supply. These actions, along with the burn rate outpacing token issuance, have set GT in a state of total deflation.
GT: Utility Deep Dive
GT is the native exchange token of Gate.io’s trading platform and native asset on the GateChain public blockchain. Within the Gate.io platform, the token is used in a tiered discount system alongside rewards, incentives, passive earning, and exclusives. In contrast, the token is the main currency used for gas fees and liquidity on GateChain, which features a thriving Web3 ecosystem consisting of DeFi techs such as NFTs, DEXs, cross-chain solutions, and more.
The deflationary nature of GT and its widespread usage on Gate.io and the GateChain ecosystem provides a positive outlook for its future valuation. At around a $1 billion market cap, GT remains a low-profile sleeping giant. Developed by Gate.io, its native blockchain is in constant research and development. GateChain boasts the largest decentralized cross-chain bridge, innovative and unique security features, and exposure to millions of users on one of the leading cryptocurrency exchanges. In addition, GT has weathered the current bear market more favourably than leading assets like BTC and ETH, so far retaining more of its value since the start of 2022.
Attributed to several factors, including market fluctuation opportunists and continued user growth combined with new trading volume milestones, a significant 2.7% of the circulating supply was burned. A full breakdown of the results and milestones is outlined in a recent announcement by Gate.io.
- Active user count continued to grow after Q1, which saw a new milestone of 10 million global users.
- Gate.io remains one of the largest contracts trading platforms, with Q2 perpetual contracts’ biweekly trading volume averaging over $40 billion.
- Gate NFT platform growth continues to accelerate, with over 300,000 works released.
- For 2022 Q2, The total GT destroyed in the buyback and burn topped 3.1 million tokens at an average buy price of $5.6, totalling over $17 million worth.
- The PoS issuance rate was significantly lower than the burn rate, amounting to a ~2.7% reduction in circulating supply.