BURNGMT Voting Gameplay Analysis
BURNGMT is a community engagement activity initiated by GMT DAO, allowing users to decide whether to burn 600 million GMT through locking votes. The event attracts user participation through rewards and long-term market strategies, enhancing the scarcity of GMT.
1. What is the limited time?
The event runs from November 21, 2024, to January 20, 2025, for a total of 60 days. During this period, users need to lock GMT to participate in voting.
2. Who's coins are being burned?
The 600 million GMT burned comes from the unlocked tokens repurchased by the GMT team and donated to the GMT DAO. These GMT were originally allocated to early investors and advisors.
3. What triggers the burning mechanism?
Voting results determine whether to burn 600 million GMT:
If the proportion of users voting for locking reaches the standard (specific rules may need further clarification from the community), 600 million GMT will be burned. Users can participate in voting by locking, and regardless of the result, can share 100 million GMT as a reward.
4. What is the voting lock mechanism?
Participants need to lock GMT tokens to the designated smart contract:
Locked funds are non-retractable. The locked amount directly affects the user's dividend ratio. After locking, users will receive a certain amount of voting power, representing their voting influence.
5. What is the return rate?
User returns come from the distribution of 100 million GMT rewards, with specific distribution depending on the following factors:
Locked Amount: The more you lock, the higher the dividend ratio.
Locking Time: Users who lock for a longer duration may enjoy additional rewards.
Since the reward distribution is based on the overall locked amount of participants, the expected annualized return will fluctuate with participation levels.
6. How are daily locked dividends calculated?
Daily dividends are based on the following formula:
Daily dividend = Total locked amount / User's locked amount × Daily allocated reward pool
The total reward pool is 100 million GMT, distributed according to the locking period.
The higher the proportion of user locks, the larger the daily dividend ratio received.
7. The impact of locking and burning GMT on the market
Locking Impact:
Short term: Large-scale locking reduces market circulation, improving supply-demand relationships, which may support GMT prices. Long term: Increases confidence among holders and maintains market stability.
Burning Impact:
After the destruction of 600 million GMT, the total supply of GMT will significantly decrease, enhancing scarcity and promoting token value.
8. How much liquidity has been removed from the lockup?
The specific liquidity impact depends on the total locked amount during the event:
Assuming 10%-20% of the circulating supply participates in locking (estimated based on current market conditions), market liquidity will significantly decrease.
This ratio will directly affect market depth and price volatility.
9. How should ordinary users operate?
For ordinary users, here are strategies to optimize participation benefits, not investment advice:
Assess holding time: Ensure sufficient GMT holdings before locking, and that liquidity is not needed for the next 60 days.
Participate early: Early locking may face lower competition, resulting in a higher dividend ratio.
Monitor the progress of the event: Keep an eye on changes in total locked amount and assess potential returns.
Risk Assessment: Evaluate the opportunity cost of locking due to market volatility, especially during significant price fluctuations.
GMT Token Distribution
1. The quantity of GMT burned and not burned
Burned: Over 800 million GMT have been destroyed (including tokens burned for the STEPN ecological burning mechanism). These destruction actions aim to reduce supply, enhancing the scarcity and value of GMT.
Not burned: The 600 million GMT involved in this BURNGMT event have not yet been destroyed, and these tokens have been repurchased by the GMT team and donated to the GMT DAO, awaiting voting decisions.
2. The quantity and distribution of unlocked GMT
Unlocked GMT account for about 55% of the total supply, with the following distribution:
Circulating Market: Mainly held by retail investors, institutional investors, and liquidity providers, used for trading and ecological products (such as STEPN).
Ecological Development: Used for STEPN user rewards and burning, applied in ecological projects such as MOOAR, Dooar, Gas Hero, etc.
Community incentives and activities: Allocated for community events, airdrops, and other user rewards.
3. The quantity and distribution of unlocked GMT
Unlocked tokens account for about 45% of the total supply, with the following distribution:
Team and Advisors:
16% allocated to project teams and early advisors, with unlocking plans subject to linear time restrictions lasting several years.
Investors:
10% allocated to early investors, most tokens have been unlocked, and the remaining part is still in the lockup period.
Ecological Fund:
19% allocated for ecological development, supporting project expansion, including the 600 million GMT in this BURNGMT event.
User Reward Pool:
Allocation continues, used for STEPN user rewards and the token economic cycle within the ecosystem.
The ecological and market status of GMT
GMT is a popular project on Binance Launchpad, with ecological applications including but not limited to:
STEPN: A globally recognized GameFi platform, collaborating with multiple international brands (such as Adidas, ASICS).
MOOAR: NFT marketplace and launch platform, supporting cross-chain NFT trading.
Dooar: Cross-chain decentralized exchange.
Gas Hero and Morchi: Strategic GameFi games and mini-games.
FSL ID: Web3 identity verification system, widely connecting the FSL ecosystem.
As of now, over 800 million GMT have been burned, and if this event is successful, it is expected to further enhance the value foundation of GMT.
