Crazy STEPN, in order to completely say goodbye to the label of 'VC token,' announced an investment of 100 million dollars to repurchase and burn 600 million GMT, launching the unprecedented BurnGMT plan! As the pioneer in the Move-to-Earn field, STEPN has quickly attracted nearly 8 million registered users worldwide since its launch in 2021, thanks to its innovative model of combining blockchain technology with fitness activities, becoming an industry leader. Meanwhile, STEPN has also collaborated with international brands and well-known IPs such as Asics, Adidas, Casio, Ghost in the Shell, Steve Aoki, and Snoopy, further consolidating its brand influence. This burning plan is not only a commitment to the community but also an important layout for the future ecological development!
BurnGMT Event: Make GMT Great Again!
On November 21, the GMT team announced on platform X that the BurnGMT.com platform is officially online. Users can participate in the decision to burn up to 600 million tokens by locking GMT. The project party has invested about 100 million dollars to repurchase all 600 million GMT allocated to unlocked early investors, advisors, and team members. These tokens will be gradually unlocked over the next 10 months, but if the voting criteria are met, they will be directly burned. This burning plan is led by the GMT ecological fund, aiming to empower the community for on-chain governance. GMT DAO is an independent entity composed of GMT holders and operates autonomously, with no affiliation to FSL and its related brands. This initiative is launched against the backdrop of an overall positive crypto market, especially significant as Bitcoin prices continue to hit new highs.
This is another strategic layout by the STEPN and its team following STEPNGO and GGT tokens. According to the official Townhall event on November 19, GMT team founder Yawn detailed the situation regarding the repurchased tokens, emphasizing that the 600 million GMT mainly comes from the unlocked tokens of early investors and advisors. This high percentage of burning proposal can effectively reduce the circulating tokens in the market while strengthening the confidence of holders.
The main activity of BurnGMT is to allow users to vote on whether to burn the 600 million GMT repurchased by the team by locking GMT tokens on the Polygon chain between November 21, 2024, and January 20, 2025. At the same time, users participating in the vote can earn an additional 100 million GMT rewards to encourage community participation. The burning quantity is determined by the amount of GMT staked: when the staking amount reaches 100 million GMT, 60 million will be burned (accounting for 1% of the total), when it reaches 500 million, 230 million will be burned (accounting for 3.8% of the total), and when it reaches 900 million, 600 million will be burned (accounting for 10% of the total). Currently, the project has locked nearly 200 million GMT tokens, achieving the phased goal of burning 60 million GMT tokens!#GMT投票燃烧计划
In the voting mechanism of BurnGMT, the amount and duration of the locked GMT directly affect the voting power and the final token rewards. The more GMT tokens are locked, the more proposals for burning GMT can be made. Participating investors can not only earn rewards through locking but also profit when the token price rises, thus achieving dual benefits for users participating in GMT lock-up.
BurnGMT Participation Website: https://burngmt.com/
BurnGMT Activity Earnings
The BurnGMT event will provide 100 million $GMT as interest, distributed evenly over 60 days, with daily settlement at UTC 0 o'clock. The daily interest of 1.67 million $GMT will be distributed according to the staking ratio. The principal and interest will be unlocked together on January 20, 2025 (the day Trump takes office), and cannot be withdrawn during the staking period. After staking, users' wallets will receive a red hat#MGGA NFT, which can be used to view the staking amount and interest earnings on MOOAR.
This website can also provide a simpler and more direct way to query interest and annualized returns:
https://superb-douhua-080df0.netlify.app
Currently calculated, depositing 10,000 GMT yields 4,658 tokens, with the current annualized return at 46.48%.
Analysis of the impact of BurnGMT on the token's fundamentals
The total supply of GMT is approximately 5.2 billion tokens, with a maximum supply of 6 billion tokens. Currently, 2.9 billion tokens are in circulation, accounting for about 50% of the total. According to the BurnGMT plan, 600 million GMT will participate in the voting burn through soft lock-up, accounting for 10% of the total supply. The current token distribution situation for GMT is: M2E accounts for 18%, ecological fund accounts for 9%, BurnGMT burning plan accounts for 10%, historical burns account for 13%, and circulating supply accounts for 50%. From a fundamental perspective, there are still half of the tokens that are unlocked. The gradual release in the future may exert downward pressure on the price. Moreover, despite GMT's total market value reaching 600 million dollars, ranking first in the Solana GameFi token market value list, its secondary market performance is not as strong compared to other mainstream altcoins. Therefore, to some extent, when BTC prices stabilize and subsequent capital overflows, once attention turns to GMT, the token's price still has significant upside potential.
In the past two years, STEPN users have consumed 800 million GMT within the app. If this activity can be successfully carried out, GMT may enter a new state of 'full circulation.' This state of full circulation will not only draw renewed market attention but may also bring new buying power and market enthusiasm to GMT.
In the context of a recovering global economy and a gradually optimistic market atmosphere, the launch of BurnGMT also demonstrates the strategic ambition of the STEPN and GMT teams. Especially against the backdrop of Trump possibly serving as US president again, this timing is seen as a significant market opportunity.
After successful voting, the tokens circulating in the market will be scarcer, and the remaining selling pressure mainly comes from the annual 2.5% Move to Earn token rewards and the foundation's token releases. If the BunGMT plan votes succeed, the institutional distribution of GMT tokens will undergo a tremendous change!
Participation Strategy Sharing
🔥 The GMT project's lock-up and burning plan is almost an open strategy to attract investment. Players can choose different strategies based on their preferences:
1️⃣ Short-term Strategy: Directly buy spot GMT, enjoy price increase profits, and sell at any time.
2️⃣ Medium-term Strategy: Lock-up and vote some GMT, earn voting rewards, while selling spot at appropriate times.
3️⃣ Long-term Strategy: Participate in voting and enjoy continuous returns, but be aware that prices may retrace after the lock-up period ends. Locked players increase their holdings through GMT earnings, while spot players can sell at any time to profit from price increases.
It is also important to note that the current estimated annualized return is already around 45%, which is quite close to the borrowing annualized rates of exchanges like Binance. Therefore, it appears that if the approach of borrowing GMT to participate in the lock-up is taken, it is not very cost-effective. For players with a long-term strategy, it may be wise to touch GMT tokens and sell them a few days before the tokens are unlocked to secure profits, thus preventing price retracement caused by a large number of withdrawals and sales at the end of the lock-up.
📈 As Bitcoin approaches $100,000, the effect of capital overflow is showing. GMT has been hovering around $0.15 for nearly half a year. With the upcoming altcoin season and the positive news of burning 600 million GMT with 100 million dollars, a strategy of buying in positions, partially locking up votes + holding spot may be a more suitable way to participate.
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