Come and watch! Binance Square's National Essay Contest is waiting for you to share 20,000 USD equivalent to GMT
18th Call for Papers This article is sponsored by @GMT DAO . We sincerely invite you to share your unique insights and analysis on this GMT burn program.
Activity Rules:
After the event, we will select the first 50 posts with at least 300 characters of high-quality content under this topic, and share a reward worth $20,000 GMT based on the number of views.
Views > 2000, get reward 900 GMT, amount 25 digits.
Views > 8000, get reward 2500 GMT, amount 15 digits.
Views > 15000, get reward 4000 GMT, amount 10 digits.
All content must be published before December 2, 2024, 12:00 (UTC+8) to qualify for rewards.
GMT, which once had a remarkable past on Binance's launchPad, skyrocketed upon its launch, reaching an astonishing increase of 400 times. This exceptional achievement is a legendary story in the crypto field, attracting the attention of countless investors.
Moreover, GMT is deeply embedded in the once-popular 'Move to Earn' innovative model wave. By leveraging this unique model that aligns with the health concepts of the era and the integration of crypto economic gameplay, GMT accurately captures the public's demand for exercise incentives and the synergetic development of virtual wealth creation. Participants can earn tangible digital asset returns based on their daily steps and other physical activity data while enjoying sports, making it a phenomenal project that has become popular among the global crypto community and fitness circles.
A complete interpretation of the deflationary voting burning plan for GMT, which once surged by 400 times!
Recently, the GMT burning plan has sparked enthusiastic responses in the community, quickly becoming the focus of attention. This plan is by no means just a simple operation of destroying part of the tokens to enhance scarcity; it deeply affects the liquidity of the entire market, investor sentiment, and the future direction of the token.
1. Voting participation destruction reward mechanism
1 Voting Participation
BurnGMT allows community members to gain voting rights by locking GMT tokens. Participants can receive limited edition NFTs and a staking reward of 100 million GMT corresponding to the voting rights.
2 Reward Distribution
The more tokens locked and the longer the locking period, the higher the rewards. Rewards will be uniformly airdropped after the 60-day locking period ends.
3 Conditions that trigger burning
The burning conditions are based on the total amount locked, and the destruction plan is as follows: When 100 million GMT is locked, 60 million tokens from the advisor's share will be burned; when 600 million GMT is locked, 170 million tokens from the team's share will be burned; when 900 million GMT is locked, 370 million tokens from the investors' share will be burned, completing the full destruction. The token destruction operations at each stage will be conducted on-chain, ensuring transparency.
2. Market reaction after token burning
In terms of volatility: Large-scale locking and burning have reduced the amount of tokens available for trading in the market, similar to how a small pond with less water makes price fluctuations more pronounced.
Impact on short-term players: The burning plan has attracted many short-term speculators. Their participation, while making the market more lively in the short term, also undermines market stability and exacerbates short-term market changes.
3. Market sentiment and related impacts
Token holder psychology: The burning plan makes holders believe that the tokens in their hands are scarcer and more valuable, creating a psychological expectation of 'less is more', which may drive prices up in the short term.
The key role of demand: While reducing supply has benefits, the future value of GMT also depends on expanding more application scenarios, such as increasing applications in DeFi and NFT fields, achieving a transformation from a scarce coin to a necessary coin.
4. Views on price trends
