As a popular token launched on Launchpad, GMT once reached a market value of $12 billion at its peak, but after two years of market fluctuations, its current market value is only $600 million.
As a leading project in the sports sector, the latest plan in the GMT ecosystem - the BURNGMT voting and burning plan - has once again attracted widespread market attention. This event has sparked heated discussions within the community and provided users with a real opportunity to 'take control of their own destiny'. Through this event, the GMT ecosystem further strengthens the token deflation mechanism and brings new participation opportunities for users. This article will conduct an in-depth analysis of the voting mechanism, token distribution, and its impact on the market.
1. Analysis of BURNGMT Voting Mechanism
Limited Time and Core Mechanism
@GMT DAO The BURNGMT voting will run 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 burn the 600 million GMT donated by the team.
Core Gameplay is as follows
Users need to lock their $GMT tokens to indicate their voting intention. The voting results will directly determine the fate of these 600 million GMT. To encourage more users to participate in voting, all participants will share a reward of 10 million GMT proportionally, increasing the appeal of the event.
Return Rate Calculation
Daily locking rewards are calculated in proportion to the amount of GMT locked by users, with the specific formula potentially based on the ratio of total locked amount. For example, if the total locked amount is 1 billion GMT, and a user locks 10,000 tokens, their daily reward will be calculated based on this proportion.
Threshold for Triggering Burn
Although the specific approval criteria have not been announced, such mechanisms usually require the locked participation amount to reach a certain proportion, and the number of votes 'in favor of destruction' to exceed a specific threshold (e.g., a 2/3 majority). This ensures that the voting results have broad representation.
2. GMT Token Unlocking and Distribution
Burned and To-Be-Burned Tokens
As of now, GMT has cumulatively burned 800 million tokens, about 13% of the total supply. If the 600 million tokens in this BURNGMT plan are successfully burned, the total burn will reach 1.4 billion tokens, further solidifying its deflationary characteristics.
Quantity and Distribution of Unlocked Tokens
Rewards from users participating in GameFi and SocialFi scenarios: such as token rewards in STEPN and Gas Hero.
Market Trading Volume: Including NFT trading fees on MOOAR and cross-chain DEX trading demand on DOOAR.
These unlocked tokens are widely distributed among users, supporting the operation of the entire FSL ecosystem.
Distribution of Unlocked Tokens
Team and Advisor Shares: Most have been donated to GMT DAO through buybacks for ecological development.
Ecological Fund: The proportion of unlocked part is about 27%, expected to be gradually released over the next six years to support ecological expansion and project collaborations.
Through reasonable distribution and gradual release mechanisms, the release speed of unlocked tokens within the GMT ecosystem is relatively stable, helping to reduce market volatility risk.
3. The Impact of GMT Token Locking and Destruction on the Market
Effects of Reduced Liquidity
The 600 million GMT locked in this plan accounts for 10% of the total supply. Assuming all users actively participate in voting and locking, this will significantly reduce the number of tokens in circulation, thereby reducing market sell-off pressure, which may provide support for token prices in the short term.
In addition, the proportion of unlocked tokens within the next six years is only 27%. As more tokens are destroyed, market expectations for the scarcity of GMT will further increase. This deflationary mechanism may provide positive incentives for long-term holders.
Investment Recommendations
Long-term investors can choose to participate in locking 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. GMT Team and Ecological Strength
STEPN's User Base and Brand Collaborations
The Find Satoshi Lab team behind GMT has established a strong global user base with its Web3 health lifestyle application STEPN: over 5.6 million registered users across more than 200 countries, and maintaining long-term partnerships with well-known brands like Casio, ASICS, and Adidas.
STEPN combines GameFi and SocialFi elements, allowing users to 'earn while walking' during outdoor activities, greatly reducing the entry barrier for users into the Web3 world.
Synergistic Effects of the FSL Ecosystem
Find Satoshi Lab not only lays out plans in the health sector, but its other products like MOOAR (NFT marketplace), DOOAR (decentralized exchange), and Gas Hero (strategy GameFi) also provide diverse application scenarios for GMT. For example, DOOAR supports ecological growth by charging a 1% transaction fee, further enhancing GMT's role in liquidity pools.
NFT trading on MOOAR provides users with a unique experience of cross-chain trading and AI-generated NFTs, expanding the use cases of GMT.
The rapid development of these synergistic products not only enhances the demand for GMT but also provides a solid foundation for the innovation of future token economic models.
Win-Win Situation
The BURNGMT voting and burning plan is a model for optimizing token economics through community governance by GMT DAO. Whether through locking for rewards or participating in voting to decide on token destruction, users can benefit from it. At the same time, the impact of locking and destruction on market liquidity and supply-demand balance 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 ecological synergy may be the winners of the future.