The GMT token burn mechanism is designed to reduce the total supply of GMT tokens, which can help increase their value over time. Here are the key aspects of how it works:
1. Quarterly Buyback and Burn: STEPN allocates a portion of its profits to buy back GMT tokens from the market and then permanently removes them from circulation.
2. Community Voting: The GMT DAO (Decentralized Autonomous Organization) allows GMT holders to vote on burning tokens. For example, the GMT Burn Initiative invites holders to vote on burning up to 600 million GMT tokens. This process is transparent and recorded on the blockchain.
3. In-App Activites: Users can also burn GMT tokens through various in-app activities, such as upgrading NFT sneakers or participating in special events.
By reducing the circulating supply, these mechanisms aim to create long-term value for GMT holders.
