This article provides a comprehensive overview of the GMT Burning Plan, detailing its logic, project background, opportunities for users, and associated risks.
This article provides a comprehensive overview of the GMT Burning Plan, detailing its logic, project background, opportunities for users, and associated risks.
The GMT Burning Plan allows participants to stake their GMT tokens to earn rewards while voting on whether to burn GMT tokens repurchased from investors and advisors. This initiative aims to reduce token unlocking pressure while generating staking yields.
Event Details
Background: The FSL team has repurchased 600 million GMT tokens from investors and advisors, voluntarily transferring them to GMT DAO for community decision-making.
Duration: November 21, 2024 – January 20, 2025 (UTC+0).
Mechanism: Token burning depends on the amount staked:
100 million staked GMT = 60 million burned.
500 million staked GMT = 230 million burned.
900+ million staked GMT = 600 million burned.
Rewards
Participants staking their tokens will share 100 million GMT rewards from the ecosystem fund, distributed daily over 60 days. The daily pool allocates 1.66 million GMT, proportionate to staked amounts.
Participants who staked their tokens on November 21 have already achieved a week-to-date token yield of 9.77%.
From GameFi to DAO: GMT’s Evolution
GMT was initially introduced as the governance token for StepN, a groundbreaking blockchain project that brought millions into the industry. StepN combines GameFi and SocialFi, incentivizing fitness with token rewards earned through walking or running with virtual NFT sneakers. At its peak, StepN attracted 5.6 million users and achieved 1 million daily active users globally.
In 2022, GMT launched as a Binance Launchpad project and experienced a peak increase of over 20x in the secondary market, though its current price has since adjusted.
Following this, an ecosystem centered around GMT was developed, further enhancing its value:
STEPN GO: Building on the success of STEPN, STEPN GO revolutionizes social fitness in everyday life.
Dooar: A multi-chain decentralized exchange.
MOOAR: A marketplace for creating and trading NFTs.
GASHERO: A strategic and social Web3 game.
FSL ID: A Web3 identity system introduced by Find Satoshi Lab (FSL).
Optimized Tokenomics for Sustainable Growth
With a total supply of 6 billion, 3 billion GMT are currently in circulation. The 600 million tokens designated for burning come from FSL's repurchase of investor and advisor holdings.
Without this initiative, monthly token unlocks would release 1.54% of the total supply, contributing to an annual inflation rate of 38.96%, heavily influenced by early investor and team unlocks.
In the long term, this token burning initiative undoubtedly solidifies GMT's value. By repurchasing and burning tokens held by advisors and investors, GMT addresses the current market's anti-VC sentiment with a decisive response.
