What is GateToken(GT) currency? Introduction to GT coin functions and token economics

What is GateToken (GT) coin?

GT (GateToken) is the native asset on the GateChain chain and the official platform currency of Gate.io. The value of GT coins is closely related to the development of Gate.io and GateChain ecology.

What is GateChain?

GateChain was born in 2018 and is a new generation of high-performance public chain launched by Gate.io. GateChain focuses on protecting the security of users’ on-chain assets and providing convenient decentralized transaction services. GateChain's goal is to build an enterprise-level secure and efficient decentralized digital asset storage, distribution and trading ecosystem.

Gatechain has an original online hot insurance account and liquidation guarantee system, which creatively solves the core basic problems in the industry such as theft of user digital assets and damage and loss of private keys.

Consensus mechanism and network nodes

GateChain adopts the PoS proof-of-stake consensus mechanism and introduces the VRF algorithm to dynamically select consensus nodes in real time, maintaining good decentralization characteristics while taking into account efficiency. Currently, GateChain has a total of 160 consensus nodes, which are distributed around the world and work together to maintain the stable operation of GateChain.

As of July 14, 2022, GateChain has a total of 49,543 on-chain addresses, with a total transaction volume of 1,829,470. You can obtain GatChain related real-time information on the GateChain official website (https://gatechain.io/).

A new generation of high-performance public chain

GateChain is designed to protect users’ asset security in the process of decentralized transactions. After 4 years of research and development, GateChain has successfully built a high-speed blockchain that can support high-frequency smart contract transactions.

Image source: GateChain

In terms of performance, GateChain’s block generation interval is 4 seconds, TPS (Transaction Per Second) can reach up to 2,745, and the gas fee for each transaction is as low as $0.0001. In contrast, Ethereum's TPS is currently only about 15, and transaction confirmation time takes at least 12-14 seconds.

Seamless integration with the Ethereum ecosystem

On-chain ecology is the key to the sustainable development of a public chain. GateChain is compatible with EVM (Ethereum Virtual Machine), and any smart contract based on Ethereum can be easily deployed and run on GateChain. Users and developers who are familiar with Ethereum can seamlessly access the GateChain ecosystem, and outstanding DeFi projects that want to join the GateChain ecosystem can also easily migrate in.

At the same time, in order to minimize the usage threshold, GateChain has expanded the account system and added the "EVM-Account" type to support users and developers to migrate Ethereum ecological products to GateChain at no cost. In addition, GateChain supports Ethereum's 0x address, and users can manage assets on Ethereum and GateChain in the same 0x address without creating a new account on GateChain.

GateChain Ecological Overview

GateChain project focuses on three directions: DeFi, NFT, and infrastructure. HipoDeFi and NFT Magic Box are the two most important ecological projects on GateChain. You can visit the Ecosystem of gatechain.io to view all applications in the ecosystem.

#1 HipoDeFi

HipoDeFi is a one-stop DeFi center on GateChain. It organizes real-time data of major DeFi projects and allows users to compare exchange rates, yields and other data. HipoDeFi has two main features:

• Swap: A DeFi aggregator compatible with most mainstream DEXs, allowing users to easily trade between different chains and platforms.

• Asset Bridge: GateBridge is a cross-chain transaction asset bridge that supports most smart public chains including Ethereum, BTC, and HECO, and can achieve fast and safe asset transfers. In addition, GateChain pioneered the "cross-chain liquidity mining" mechanism to bring more value to users.

• Mining: Users can participate in fee dividends by providing liquidity and mortgage liquidity certificates to obtain mining rewards.

#2 NFT Magic Box

NFT Magic Box was launched in 2021 and is an NFT market built on GateChain. Gate NFT Magic Box has the following features:

• No casting fees: on Magic Box There is no cost to mint NFT, which can help artists better focus on creation.

• Low fees: Magic Box is built on GateChain, with extremely low transaction fees.

• High-quality works: NFT Magic Box cooperates with Bored Ape Yacht Club (BAYC) and NBA legend Allen Iverson to provide you with the highest quality NFT collections.

• ARTISTS FIRST: The Magic Box has minted over 300,000 NFTs. We will also provide INO (Initial NFT Offering) to promising artists as development funds.

Function of Doghead Coin

As a native asset on GateChain, GT is the basis for supporting the operation of GateChian main network. GT’s on-chain functions mainly include:

• Pay the online transfer fee. GateChain supports users to use wallets and clients to send and receive GT and other on-chain assets.

• GT is GateChain’s PoS equity mining reward. In order to ensure the health and stability of the underlying blockchain, GateChain encourages users to participate in PoS mining to obtain GT rewards as stable income returns.

• GateChain supports users to issue their own Tokens to realize asset digitization, and use GT as a transaction carrier to manage their digital assets.

In addition, as the only platform currency of Gate.io, GT has a very large ecosystem and usage scenarios, including currency-to-crypto trading, OTC over-the-counter trading, margin trading, futures contracts, and various derivative products such as leveraged financial management, Legal currency lending, financial management services, etc. GT holders can also enjoy VIP level upgrades, handling fee deductions, participation rights in welfare activities, and more application scenarios.

Gate.io is gradually expanding the application scope of GT and enhancing the intrinsic value of GT.

GT Token Economics

GT was launched without ICO, private placement, or institutional investment.

GT was issued in 2019 and officially upgraded to the Gate.io platform currency on March 2, 2020. Its initial issuance total is 1 billion, and 700 million will be destroyed later. The current circulation limit is 300 million. Users can directly purchase GT through the spot market of the Gate.io platform, or they can mine GT as a consensus node on GateChain, or obtain GT through POS commissioned mining.

Since the launch of the main network, the network PoS output speed is far lower than the GT destruction speed, and the total amount of GT is in a state of net deflation.

Token destruction mechanism

As the official platform currency of Gate.io, GT is deeply bound to the development of the Gate.io platform. Gate.io guarantees the value of GT by buying back and destroying GT in the market.

On August 27, 2019, Gate.io burned 19,467,230 GT for the first time (click here to view the on-chain destruction record). Since then, it has been publicly destroying GT from time to time without interruption. Click here to view the destruction address announcement.

To further protect the rights and interests of users, Gate.io will use 15% of the profits from platform currency/leverage/contract transactions (and subsequent new main trading products) to repurchase from the secondary market starting from September 1, 2020 GT is circulated and publicly destroyed. In addition, 5% of the repurchase profits will be used for GT R&D, marketing, and ecological parts, and will no longer flow to the market. The total repurchase ratio is as high as 20% (click here for relevant announcements). The GT buyback ratio increases or decreases every four years based on market and industry conditions.

As of June 2, 2022, Gate.io has destroyed a total of more than 151 million GT through Startup, voting for currency listing, destruction of broken coin mortgages, and destruction of uncirculated GT.

Conclusion

Gate, as the largest exchange in the industry for nearly 10 years, providing diversified investment products and financial services, has always been committed to providing users with safe, reliable, convenient and fast trading services. GateChain and GT are important parts of the development plan.

GateChain is a growing system. We will continue to optimize the GateChain mechanism and provide it with novel functions. With the continuous development of GataChain and Gate.io, the value of GT will also be guaranteed.

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