Gate.io Introduces the Official GT Burning Plan, with over 26,000,000 GT Burned
About the Gate.io POINTs
Gate.io officially launched POINTs on May 6th, 2019. Users can enjoy further handling fee deductions by purchasing prepaid POINT plans where 1 POINT = 1 USDT. POINTs are applied simultaneously with VIP discounts.
Gate.io POINTs can significantly reduce user trading fees, and it quickly became viral among our users as soon as it launched. Many users have chosen to use POINTs to deduct their handling fees, and our trading volume has increased 3 to 5 times since then. According to our previous exchange fee rate analysis, with Gate.io POINTs, Gate.io now has the most competitive fee rates in the world compared to other major exchanges. For more details, please refer to: https://www.gate.io/article/16959
About GT Rewards with POINTs purchase
When purchasing Gate.io POINT prepaid plans, users receive POINTs, but they also receive GT as a reward. Currently, the GT rewards are distributed as part of the GT Token Distribution Phase III, which will last for one year. The GT reward that comes with the POINT plans will reduce every season. As per the distribution plan, at the end of Phase III, the undistributed GT will be burned accordingly.
About the GT Burning Plan
Gate.io recently released an announcement titled “Gate.io Solicits Feedback about GT Burning Plan” (https://www.gate.io/article/16963). Approximately 1,000 users submitted their feedback and provided constructive criticism not only on the burning plan and GT development, but also on how the exchange can improve its features and services. Based on the collected suggestions, we conducted an analysis on users’ opinions on the burning plans. We have summarized key feedback in this report (https://www.gate.io/article/16975).
Gate.io is always open to suggestions and values users’ opinions. After our thorough discussion and investigation, we will be burning the undistributed GT on a monthly basis. The undistributed GT from Q1 (April-May-June) and the first month of Q2 (July), a total of 26,340,843 GT has been burned, with an estimated market cap of $23,000,000. The remaining undistributed GT reward will be burned every 22nd of the month. The detailed plan is as follows:
1) The total amount of GT for Phase III Distribution is 100M, therefore there are 8,333,333 GT to be burned each month on average. Period of validity: 2019–04–21 16:00:00 UTC ~ 2020–04–21 15:59:59 UTC
2) During the first three months of Phase III (Q1), each POINT purchase came with 0.5 GT reward, period of validity: 2019–04–21 16:00:00 UTC ~ 2019–07–21 15:59:59 UTC. The total amount of GT burned is hence 19,467,230 (estimated market cap $17,000,000). Check the details for the token burned at: https://etherscan.io/tx/0xd58a6a14a6a1d6fcc800120baa52386bb139a181b3750ea13c4b7090935aeb77
3) During the fourth month of Phase III (first month of Q2), each POINT purchase came with 0.4 GT reward, period of validity 2019–07–22 16:00:00 UTC ~ 2019–08–21 15:59:59 UTC. The total amount of GT burned is 6,873,613 (estimated market cap $6,000,000). Check the details for the token burned at: https://etherscan.io/tx/0xdeda16fde1da3b946eda956b35b6ad2cf599db1ca0fbf4cc131bddfec751f640
4) The remaining undistributed Phase III GT will be burned on the 22nd of each month.
5) The burned GT will be transferred to and locked on the ERC20 address 0x2b8F8d19F5ba3bEc5B44dEDeD3818a427895f308. This portion of GT will not be swapped to the mainnet. Users can check the details at https://etherscan.io/token/0xe66747a101bff2dba3697199dcce5b743b454759?a=0x2b8F8d19F5ba3bEc5B44dEDeD3818a427895f308
Up to now, a total of 26,340,843 GT has been burned, with an estimated market cap of $23,000,000. As the amount of GT reward decreases with each POINT purchase, once the price of POINT over the counter stays lower than the official price, the amount of GT rewards will continue to drop, meaning the amount of GT to be burned will increase. Based on our estimation, about 80%-90% of the Phase III GT will be burned.
During the feedback solicitation, many users have provided constructive criticism not only on the burning plan and GT development, but also on how the exchange can improve its features and services. We will conduct further investigation on these suggestions and try to bring more benefits to our users.
Exchange Token Burning Plan Comparisons
Please note that “exchange token” refers to the token and assets as such issued by the exchange or the related entities. GT is the base currency of GateChian, a public chain launching at the end of 2019. GT is currently a ERC20 token, and is a significant component to the Gate.io eco.
In order to better illustrate the GT burning plans, the following session will present the comparison among different exchange token burning plans, including BNB, HT, OKB and KCS. BNB has the highest ratio of burned token, HT has the second highest, GT the third, while OKB and KCS have lower ratios.
According to our burning plan for the coming months, the ratio of burned GT will increase rapidly. Whereas due to the price increase (and if the platforms’ profits remain consistent), the ratio of burned exchange token of other platforms might drop. Based on this assumption, the ratio of burned GT will soon overtake BNB and HT, and becomes the token with the highest burning ratio.
Graph 1: Change of Total Supply by Token Burning (GT, BNB, HT, OKB KCS)
Graph 2: Ratio of Amount of Token Burned Per Burning (GT, BNB, HT, OKB KCS)
Graph 3: Estimated Market Cap of Burned Token
About the Development of Gatechain
We are currently preparing for the launch of the Gatechain testnet. We will be hosting Gatechain Public Chain Security Seminars and releasing research reports to share Gatechain’s creative solutions to blockchain technology security problems. Please stay tuned!
FAQ for POINT:
1. Where can I purchase POINT?
Users can purchase POINTs via Web or Mobile App.
Purchase POINTs via Web: https://www.gateio.co/myaccount/point_manage
Purchase POINTs via Mobile App: Go to Markets -> POINT management
2. Can I transfer POINTs?
Gate.io also provides POINT transfer service.
Transfer POINTs via web: https://www.gateio.co/myaccount/point_manage
Transfer POINTs via mobile APP: Go to Markets -> POINT management
3. Where can I check my POINT balance?
For mobile users, please go to Wallets -> Spot Account;
For web users , please go to: https://www.gateio.co/myaccount/point_manage
4. How can I check the POINT deduction?
For web users, please go to: https://www.gateio.co/myaccount/mypurselog
For mobile users, please check at Transactions or refer to the balance of POINT in the account.
5. Can I use POINTs with the VIP discount?
The VIP discounts and POINTs can be applied simultaneously. Check out the new VIP level structure at: https://www.gate.io/article/16959
We sincerely appreciate your continuous support. Stay tuned for more innovative products from Gate.io!
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