GMT, as a popular token that has been listed on Launchpad, once peaked at a market value of 12 billion USD. After experiencing two years of bull-bear transitions, it currently has a market value of only 600 million USD. As a leading project in the sports sector, its latest plan in the ecosystem—the BURNGMT voting burning plan—has once again attracted widespread market attention. Not only is the community continuously discussing it, but users also have a real opportunity to 'take control of their own destiny.' Through this event, the GMT ecosystem further strengthened the token deflationary mechanism and provided users with new opportunities for participation. This article will conduct an in-depth analysis around the voting mechanism, token distribution, and its impact on the market.
1. Analysis of the BURNGMT Voting Gameplay
Time Limitation and Core Mechanism
The BURNGMT voting will last from November 21, 2024, to January 20, 2025, for a total of 60 days. During this period, users can participate in voting by locking GMT to decide whether to destroy the 600 million GMT donated by the team.
Core gameplay is as follows:
Users need to lock the $GMT tokens in hand to indicate voting intentions.
The voting results will directly determine the fate of these 600 million GMT.
To incentivize more users to participate in voting, all voting participants will share a reward of 100 million GMT proportionally, enhancing the attractiveness of the event.
Calculation of Returns
The daily locking rewards are proportional to the number of GMT locked by users, with specific formulas possibly based on proportional distribution of total locked amount. For example, if the total locked amount is 1 billion GMT and a user locks up 10,000 tokens, their daily rewards will be calculated based on this proportion.
Threshold for Triggering Burns
The mechanism for whether the vote passes has not been explicitly stated, but generally, such mechanisms require the locked participation amount to reach a certain proportion, and the number of 'agree to burn' votes to exceed a specific threshold (e.g., a 2/3 majority). This ensures that the voting results are widely representative.
2. Unlocking and Distribution of GMT Tokens
Burned and To-Be-Burned Tokens
As of now, GMT has cumulatively burned 800 million tokens, accounting for approximately 13% of the total supply, which has been achieved gradually through historical activities and use cases. If the 600 million tokens from this BURNGMT plan are successfully burned, the total burned amount of GMT will reach 1.4 billion tokens, further reinforcing its deflationary characteristics.
Quantity and Distribution of Unlocked Tokens
The current circulation of GMT is approximately 50% of the total supply, covering the following main parts:
Rewards from user participation in GameFi and SocialFi scenarios: such as token rewards in STEPN and Gas Hero.
Market Trading Circulation: Including NFT trading fees on MOOAR and cross-chain DEX trading demand on DOOAR.
These unlocked tokens are widely distributed among users and support the operation of the entire FSL ecosystem.
Distribution of Unlocked Tokens
The unlocked tokens mainly include the following parts:
Team and Advisor Shares: Most have been repurchased and donated to GMT DAO for ecological development.
Ecological Fund: The unlocked portion accounts for approximately27%, expected to be gradually released over the next six years to support ecological expansion and project cooperation.
Through reasonable allocation and gradual release mechanisms, the release speed of unlocked tokens within the GMT ecosystem is relatively smooth, helping to reduce market volatility risk.
3. The Impact of GMT Token Locking and Burning on the Market
Effect of Reduced Liquidity
The 600 million GMT locked in this plan accounts for 10% of the total supply. If all users actively participate in voting and locking, this will significantly reduce the number of tokens in circulation. Reducing circulation can lower market sell-off pressure, potentially providing support for token prices in the short term.
Moreover, the proportion of unlocked tokens in the next six years is only 27%, and as more tokens are burned, market expectations for the scarcity of GMT will further strengthen. This deflationary mechanism may bring positive incentives for long-term holders.
Advice for Investors
Ordinary users can combine their holding strategies when participating:
Long-term investors: can choose to participate in locking up tokens to enjoy daily dividends and accumulate more tokens for long-term appreciation.
Short-term traders: need to weigh the opportunity cost of being unable to trade during the locking period, especially since the locking period for voting participation is relatively long (60 days).
4. Strength of the GMT Team and Ecosystem
User Base and Brand Partnerships of STEPN
The Find Satoshi Lab team behind GMT has established a strong global user base with STEPN, a Web3 health lifestyle application: over 5.6 million registered users covering more than 200 countries, and maintaining long-term partnerships with well-known brands such as Casio, ASICS, and Adidas. STEPN allows users to achieve 'earn while walking' in outdoor activities by combining GameFi and SocialFi elements, significantly lowering the entry barrier for users into the Web3 world.
Synergistic Effects of the FSL Ecosystem
Find Satoshi Lab not only has layouts in the health sector, but its other products such as MOOAR (NFT market), DOOAR (decentralized exchange), and Gas Hero (strategy GameFi) also provide diversified application scenarios for GMT. For example:
DOOAR supports ecosystem growth by charging a 1% transaction fee, further enhancing GMT's role in liquidity pools.
MOOAR's NFT trading provides users with a unique experience of cross-chain trading and AI-generated NFTs, expanding the use cases for GMT.
The rapid development of these synergistic products not only enhances the demand for GMT but also provides a solid foundation for future innovations in the token economic model.
A Win-Win Situation for Users and Projects
The BURNGMT voting burning plan is a model of token economic optimization implemented by GMT DAO through community governance. Whether gaining rewards through locking or participating in votes to decide token destruction, users can benefit. At the same time, the impact of locking and burning on market liquidity and supply-demand balance also provides stronger value support for GMT tokens.
For investors, participating in this plan is not only a way to support project development but also a wise move to capture potential market opportunities. In today's rapidly evolving Web3 economy, projects like GMT that emphasize community consensus and ecosystem synergy may very well be the winners of the future.
