Token burning is similar to destroying a banknote, but it takes place in the digital realm. If you choose to burn certain tokens, it means that nobody else can utilize them anymore, and as a result, the total quantity of tokens in circulation decreases.
Why would anyone do this? Well, when there are fewer tokens available, the remaining ones have the potential to become more valuable. Just like with items that are rare or in limited supply, their worth can go up. In the context of cryptocurrencies, burning tokens is a way to manage the supply and either maintain or boost their value.
The team behind $GMT is putting this concept into practice. They've left the decision regarding token burning to the participants. These participants can decide whether to burn the tokens while also sharing 100 million GMT as a kind of reward.
Another thing to note is that the team repurchased 600 million unlocked GMT tokens from investors and advisors. They then donated these tokens to the GMT DAO for a voting event that's blocked for 60 days, starting from November 21, 2024, and ending on January 20, 2025.
The purpose of this post is educational. It's important to mention that at no point is any investment advice being provided.
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