GT (GateToken) is the native asset of GateChain and the utility token of Gate.io. The value of GT is closely related to the development of Gate.io and the GateChain ecosystem.
GateChain was born in 2018 and is a new generation of high-performance public chain launched by Gate.io. GateChain focuses on protecting the security of users’ on-chain assets and providing convenient decentralized transaction services. GateChain’s goal is to build an enterprise-level safe and efficient decentralized digital asset storage, distribution and trading ecosystem.
Gatechain has an original online hot vault account and a liquidation guarantee system, which creatively solves the core basic problems of the industry such as the theft of users’ digital assets and the loss of private keys.
Consensus mechanism and network nodes
GateChain adopts the proof-of-stake consensus mechanism and introduces the VRF algorithm to dynamically select consensus nodes in real time, maintaining good decentralization while taking into account the efficiency. Now, GateChain has a total of 160 consensus nodes, which are distributed all over the world to jointly maintain GateChain’s stable operation.
As of July 14, 2022, GateChain has over 49,543 addresses, with a total transaction of 1,829,470. You can get the real-time information about GatChain on its official website (Gatechain.io/).
A new generation of high-performance public chains
The original intention of GateChain is to ensure the security of users’ assets in decentralized transactions. After 4 years of research and development, we have successfully built GateChain into a high-speed blockchain that can support high-frequency smart contract transactions.
In terms of performance, GateChain’s block time is 4 seconds, with TPS (Transaction Per Second) up to 2,745, and gas fees as low as $0.0001 per transaction.
In contrast, Ethereum’s TPS is only about 15, and the transaction takes at least 12-14 seconds to confirm.
Seamless connection to the Ethereum ecosystem
On-chain ecosystem is the key to the sustainable development of a public chain. GateChain is compatible with EVM (Ethereum Virtual Machine); therefore any Ethereum-based smart contracts can be easily deployed to run on GateChain. Users and developers familiar with Ethereum can seamlessly access the GateChain ecosystem, and those excellent DeFi projects who want to join the GateChain ecosystem can also easily move in.
At the same time, in order to be more user-friendly, GateChain has extended its account system and added the “EVM-Account” type to support developers to migrate Ethereum dAPPs to GateChain at low cost. In addition, GateChain supports Ethereum’s 0x address, and users can manage assets on Ethereum and GateChain in the same address without the need for a new account on GateChain.
GateChain Ecosystem Overview
The GateChain mainly focuses on DeFi, NFT, and infrastructure. HipoDeFi and NFT Box are the two major projects on GateChain. You can visit https://gatechain.io/ecosystem/ to view all the dAPPs in the ecosystem.
#1 HipoDeFi at hipo.com
HipoDeFi is a one-stop DeFi center on GateChain, which organizes real-time data of major DeFi projects, allowing users to compare exchange rates, yields and other data. HipoDeFi has two main functions:
Swap: A DeFi aggregator compatible with most mainstream DEXs, users can easily trade between different chains and platforms.
Asset Bridge: GateBridge is a cross-chain asset bridge that supports most smart public chains including Ethereum, BTC, and HECO, enabling fast and secure asset transfers. In addition, GateChain invented the “cross-chain liquidity mining” mechanism to bring more value to users.
Mining: Users can get transaction fee dividends by providing liquidity, and pledge assets to obtain mining rewards.
#2 NFT Box
Launched in 2021, NFT Box is an NFT market built on GateChain. Gate NFT Box has the following features:
No Minting Fees: There is no fee to mint NFTs on the NFT Box, which helps artists to better focus on their creations.
Low Fees: NFT Box is built on GateChain with extremely low transaction fees.
HIGH QUALITY: NFT Box has partnered with Bored Ape Yacht Club (BAYC) and NBA legend Allen Iverson to provide you with the highest quality NFT collections.
Artist First: The NFT Box has minted over 300,000 NFTs. We will also provide INOs (Initial NFT Offerings) to promising artists as development funds.
As the native asset on GateChain, GT is the foundation supporting the operation of the GateChian mainnet. GT’s on-chain functions mainly include:
Pay online transfer fees. GateChain supports users to send and receive GT and other on-chain assets using wallets and clients.
GT is GateChain’s PoS mining reward. In order to ensure the stability of the blockchain, GateChain encourages users to participate in PoS mining to obtain GT rewards as a stable return.
GateChain allows users to issue their own Tokens to digitize their assets, and use GT as a carrier to manage their own digital assets.
In addition, as the utility token of Gate.io, GT has many usage scenarios, including currency trading, OTC trading, leveraged trading, futures contracts, and various derivative products such as leveraged loan, P2P loan, wealth management, etc. GT holders can also enjoy VIP level upgrades, deductions for fees, rights to participate in welfare activities and more applications.
Gate.io is gradually expanding the applications of GT and enhancing the intrinsic value of GT.
There was no ICO, no private placement, and no institutional investment in GT’s launch.
GT was issued in 2019 and officially upgraded to the Gate.io utility token on March 2, 2020. The total initial issuance was 1 billion, and then 700 million was burnt. The current circulation is 300 million. Users can directly purchase GT through the spot market of the Gate.io platform, or they can mine as a consensus node on GateChain, or obtain GT through POS entrusted mining.
Since the launch of the GateChian mainnet, the PoS output is much larger than the GT burnt, and the total amount of GT is in deflation.
Token Burning Mechanism
As the utility token of Gate.io, GT’s value is deeply bound to the development of Gate.io. Gate.io guarantees the value of GT by repurchasing and burning GT on the market.
On August 27, 2019, Gate.io destroyed 19,467,230 GTs for the first time (click here to view the on-chain destruction records), and has been publicly destroying GTuninterruptedly since then. Click here to view the announcement of the destruction address.
In order to further ensure investor’s rights and interests, Gate.io is using 15% of the profits from currency/leverage/contract transactions (and new main trading products in the future) to repurchase circulating GT from the secondary market, which started on September 1, 2020. In addition, 5% of the repurchase profits will be used for GT R&D, marketing, and ecological promotion These GTs will never flow back to the market. The total repurchase ratio is as high as 20% (click here for relevant announcements). The GT buyback ratio is increased or decreased every four years based on the market and industry’s conditions.
As of June 2, 2022, Gate.io has burnt over 151 million GTs through Startups, list request voting, burning of coin collateral, andburning of uncirculated GTs.
As one of the largest exchanges in the crypto industry that has existed for nearly 10 years, Gate provides diversified investment commodities and financial services. Gate has always been committed to providing investors with secure, reliable, convenient and fast trading services. GateChain and GT are an important part of the plan.
GateChain is a growing system. We will continue to optimize the GateChain mechanism and provide it with novel functions. With the continuous development of GateChain and Gate.io, the value of GT will also be guaranteed in the long term.