Today, let's talk about a brand new mechanism, BURNGMT, this voting gameplay.
First, what is the GMT token?
GMT is the governance token of STEPN, which is a Web 3 based sports and health application that incorporates Social-Fi and Game-Fi elements. Anyone engaged in sports, walking, running, in short, moving in real life can earn rewards through this application, in other words, income. These rewards are granted together with GST, which is another token of the application, forming a dual-token system. Additionally, users can earn NFTs.
BURNGMT Voting Time: It starts from November 21, 2024, and lasts until January 20, 2025.
Situation of Burned Tokens: The burned tokens are 600 million GMT tokens repurchased by the official GMT team, most of which come from early investors, unclaimed shares of advisors, and allocations to certain team members.
Triggering the Burning Mechanism: When the locked amount corresponding to the voting share reaches the thresholds of 100 million, 500 million, and 900 million, the team will be prompted to destroy all amounts allocated to advisors, team members, and investors over the next 10 months. Moreover, the unlocked GMT tokens will be sent to a black hole address for destruction, and there will also be on-chain records.
Voting Lockup Mechanism: Users need to lock GMT tokens on the Polygon chain to gain voting shares. Note that this lockup is solely for the allocation of voting shares and is a hard lockup; users will not be able to unlock during the voting period and must wait for the 60-day lockup period to pass before unlocking.
Return Rate Related: Users participating in the voting can share a total of 100 million GMT in additional rewards. The distribution of rewards is related to the amount of GMT locked by users and the duration of the lockup. The more GMT locked and the longer the lockup period, the more token rewards can be obtained. Also, if the total daily locked amount of GMT is less, individual users will receive more GMT token rewards.
The Impact of GMT Token Lockup and Burning on the Market:
• Positive Aspect: It can reduce the supply of tokens, potentially raising the price of GMT and attracting market attention and potential buying interest, bringing new market vitality to GMT. Moreover, this voting activity can also stimulate community participation, boosting the confidence of token holders.
• Negative Aspect: If a large number of tokens are locked, it may reduce the circulating supply of GMT in the market, which could affect its liquidity to some extent. If the market demand for GMT suddenly increases, there might be a supply shortage, which would affect the trading activity in the market.
Liquidity Situation of Locked Amounts: Currently, there is no clear data indicating how much liquidity has been removed due to lockup. It's known that users will lock up a certain amount of GMT tokens to gain voting shares, and the specific locked amount depends on the user's participation and willingness to lock.
Daily Lockup Dividend Calculation: This time, the reward of 100 million GMT from the voting will be distributed evenly over 60 days, which means that 1.67 million GMT will be distributed daily. However, the final amount of rewards an individual user can receive will depend on their own locked amount, lockup duration, and the total locked amount of GMT on that day. The calculation formula is: individual user daily reward = (user locked amount × lockup time weight) / total locked GMT on that day × 1.67 million.
Users can choose a suitable locked amount and lockup duration to participate in the voting from November 21, 2024, to January 20, 2025, according to their own situation to receive corresponding rewards.
