Recently, the BURNGMT voting burn plan, which has been a hot topic in the Web3 community, has attracted countless attention—600 million GMT's fate is entirely decided by the community. This is not only a token economic adjustment but also a major experiment in decentralized governance and market value. Think about it, 600 million unblocked tokens could pose a huge release pressure in the future, but now, their fate entirely depends on our choices.
It makes one curious, what does this burning really mean? On one hand, if 600 million tokens are destroyed, the total supply of GMT will see a significant reduction, potentially increasing market value; on the other hand, this is also a reflection of community co-governance. The design of locked voting not only allows every participant to have a voice but also brings real benefits from dividend rewards. Therefore, this action is not only about the fate of the token but also a major test for community collaboration and the future of the market. So, what is hidden behind this 60-day voting action? What changes will it bring to the future of GMT?
The fate of 600 million GMT: How will the voting burn play out?
Who’s token is going to be burned this time?
The 600 million tokens in this burning plan are not ordinary circulating tokens but are unblocked tokens repurchased by the team from early investors and advisors. These tokens were supposed to be gradually released in the future, but now their fate is decided by the community through the team's donation.
Voting time and mechanism
Time frame: November 21, 2024 - January 20, 2025, a full 60 days.
Participation method: Users need to lock their GMT to obtain corresponding voting rights. The more tokens locked and the longer the time, the greater the voting weight.
Reward incentive: During the lock-up period, participants will share a total of 100 million GMT dividends, with the distribution ratio based on the proportion of locked amounts.
Conditions that trigger the burn
The final voting result will determine the fate of the 600 million tokens: if a majority of community members vote to 'burn', these tokens will be completely destroyed and permanently removed from the supply.
How significant is the impact of this voting burn on the GMT market?
1. Reduce circulation supply to relieve market pressure
The direct result of the burning plan is to reduce the total supply of tokens and temporarily freeze a large amount of circulating supply through locking. Assuming the locked amount reaches 1 billion GMT, that would mean nearly 17% of the total supply is locked in the short term, significantly reducing market liquidity. This short-term change in supply-demand relationship often positively supports prices.
2. Long-term deflationary effect enhances value
If the vote passes, 600 million tokens will be permanently destroyed, and combined with the previously destroyed 800 million GMT, the total amount of destroyed tokens will reach 1.4 billion, accounting for 23% of the total supply. This further enhances the scarcity of GMT and instills confidence in long-term investors.
3. Enhanced community recognition, attracting new users
This action is initiated and led by the community, allowing users to directly participate in token governance. This highly transparent and decentralized governance method helps enhance users' sense of belonging to the GMT ecosystem and injects vitality to attract more Web3 users.
The distribution of GMT tokens and future circulation status
Current token distribution status
Circulating GMT: approximately 50%, mainly used for STEPN's exercise rewards, DOOAR's transaction fee payments, MOOAR's NFT trading, and other ecological scenarios.
Tokens already destroyed: 800 million, accounting for 13% of the total supply.
Unblocked tokens: 27%, including ecological funds and team incentives, will be gradually released over the next six years.
The impact of the burn on future releases
Through this burning plan, the total amount of unblocked tokens will be significantly reduced, lowering the pressure of future token releases. Coupled with the flexible use of the ecological fund, the overall supply of GMT will remain at a healthy level, helping to stabilize market expectations.
How can users seize this opportunity?
1. Participate in locking and enjoy dividends
If you are a GMT holder, participating in the locked voting not only expresses your attitude towards the future of the token but also allows you to share a reward of 100 million GMT. This is a good opportunity for long-term holders to increase their holdings.
2. Leverage market momentum to flexibly adjust strategies
During the burning plan, the market may experience significant fluctuations. Short-term investors can flexibly adjust their operational strategies based on voting dynamics, while long-term investors can pay attention to the potential value increase brought about by the increase in market scarcity.
3. Continuously focus on ecological development
The value of GMT relies not only on burning and locking but is also closely related to the expansion of its ecosystem. From STEPN's exercise rewards to MOOAR's NFT trading, and to Gas Hero's strategic games, GMT provides users with multiple practical application scenarios, driving the growth of token demand.
Can GMT break through its previous high? Let's wait and see!
The 600 million GMT burning plan is not only an experiment in token governance but also a dual test of community cohesion and market value. If the burn is successful, the scarcity of GMT will significantly increase, combined with the continuously expanding ecological scenarios and user base, the token price is expected to usher in a new breakthrough.
Whether you are an ordinary user or a seasoned player, this voting is worth your serious participation, as every vote shapes the future of GMT.
