STEPN is a Web3 application that combines Game-FI and Social-Fi elements, focusing on encouraging people to exercise more. Users wear NFT sneakers to walk, jog, or run outdoors to earn tokens and mystery boxes.
The voting period for BURNGMT is from November 21, 2024, to January 20, 2025.
Whose coins are being burned
The burned tokens are the 600 million GMT tokens previously repurchased by the GMT official team, mainly from the unlocked shares of early investors and advisors, as well as part of the team's distribution.
Mechanism triggering the burn
When the voting share meets the thresholds of 100 million, 500 million, and 900 million locked, it will trigger the team to destroy all quotas for advisors, team members, and investors over the next 10 months. The unlocked GMT tokens will be sent to a black hole address for destruction, accompanied by on-chain records.
Voting locking mechanism
Users obtain voting shares by locking GMT tokens on the Polygon chain; the lock is only for voting share allocation, and this lock is a hard lock, meaning it cannot be unlocked during the voting period, and will only be unlocked after a 60-day lock period.
Return rate
Users participating in the vote can share a total of 100 million additional GMT rewards, with distribution related to the user's locked amount of GMT and the duration of locking. The larger the locked amount and the longer the locking time, the more corresponding token rewards. At the same time, the less the total amount of GMT locked daily, the more rewards each user can share.
The impact of GMT token locking and burning on the market
• Positive impact: Reducing the supply of tokens is expected to raise the price of GMT, attract market attention and potential buyers, bringing new vitality to GMT; the voting activity can also stimulate community participation and boost confidence among token holders.
• Negative impact: A large amount of locked tokens may lead to a decrease in the circulation of GMT in the market, affecting its liquidity to a certain extent. If the market suddenly increases its demand for GMT, a supply shortage may occur, further impacting market trading activity.
How much liquidity has been removed from locking
Currently, there is no clear data showing how much liquidity has been removed due to locking, but it is known that users lock a certain amount of GMT tokens to obtain voting shares, and the amount varies based on user participation and willingness to lock.
Daily locked dividend calculation
The 100 million GMT reward from this vote will be evenly distributed over 60 days, meaning 1.67 million GMT can be allocated daily. The final reward for each user will also depend on their locked amount, locking time, and the total amount of GMT locked on that day. The calculation formula is: Daily reward for a single user = (User's locked amount × locking time weight) / Total GMT locked on that day × 1.67 million.
General user operation suggestions
Users can choose the appropriate amount of locking and locking time to participate in the vote from November 21, 2024, to January 20, 2025, based on their own situation to obtain corresponding rewards.
Unlocking and distribution status of GMT tokens
• Number and distribution of unlocked coins: On January 9, 2024, stepn unlocked 79.2 million GMT, of which about 47.6% was allocated to 22 'strong hold' addresses, with 55.3 million GMT being allocated to 45 unique addresses 50 minutes prior, and only 6.8% of the unlocked GMT was deposited into Binance.
• Distribution of unlocked coins: Unlocked coins mainly consist of about 2.5% of the annual Move2Earn reward share and foundation share.
• Burned and unburned coins: According to news from April 2022, stepn had repurchased and destroyed nearly 300,000 GMT through trading royalties and fees in its in-app NFT market. If this vote passes, there will be 600 million repurchased GMT awaiting destruction, and unburned coins include the aforementioned unlocked shares and other circulating GMT.
