What is the Role of Voting Burn Mechanism in 60 Lock Period and 100M GMT Reward Pool?
Voting Burn Mechanism worked as an inventive way of governance and economics of the token with aim of achieving productive engagement and compensating active users of the token. This is an asymmetric relationship where one side allows the proposal and the other, the side with the token, casts votes intending to make decisions on the future of the platform. In this process of voting, the tokens spent are part of the voted tokens for a proposal and an answer is gained by the burning of the tokens in circulation eventually increasing the remaining ones in circulation.
60-day lock period is a critical feature of the proposal. During the process of voting, all tokens that were voted for, in this case voting for the participants themselves, are locked for a period of 60 days. For the duration of this period all participants are not able to transfer any tokens acting as a collateral and are not able to sell or even use them for other purposes. This lock period is meant to guarantee that the voters are engaging counters and are committing to the decision without the intent of quick gain speculation hence decision making for governance comes at a cost.
In order to encourage participation, the platform allocates 100 million GMT reward pool. This reward pool is distributed to voters according to their level of the voting activity. The more tokens a user locks and burns during the voting, the bigger the portion off the reward pool allocated to him. This system takes care of the user since it is also the users who benefit as it goes without saying that their contribution is compensated for proportionately.
To put all this concisely, the voting burn mechanism compensates its users out of the pool of 100M GMTs, also creates an incentive for long-term holding via a 60 day lock period and undergoes a reduction in the token supply by way of burns. This assists in getting a balance among community participation, supply constraints and incentives to the users.
