GateChain’s First-Ever Governance Voting: Voting to Decide on the Release of GC and PoS Incentive Schemes
1. Duration: May 13th, 2020 GMT 4:00 — May 14th, 2020 GMT 4:00
2. Airdrop Amount: All voters, regardless of which project they voted for, have a chance to share an airdrop of 20,000 GT in total.
3. Participate in the Vote at: https://www.gate.io/poll/votelist/15
Gate.io has launched GateChain Testnet 3.0 in April 2020. GateChain not only has its unique asset security features such as vault accounts. It also comes with great network capacity. Additionally, GateChain creatively presents a solution for security issues such as loss of private keys and assets being stolen. With the new GateChain underlying architecture and consensus mechanism, the performance in the testing environment reaches 2000+ TPS (Transactions per Second) and supports 1000+ validator nodes.
According to the development scheme, GateChain Testnet 4.0, the last Testnet, will be released in May 2020. The launch will ultimately determine all the PoS parameters. However, the most important thing is how to stimulate mining under PoS and maintain a stable network. We have already mentioned that Gate.io would separate the use of GateChain Token (GT) and Gatechain Coin (GC). GT is used as the platform token and a token of GateChain and GC is responsible for producing staking rewards, used as a mainnet token of GateChain.
Recently, we’ve received feedback from our users. Some proposed disagreements of releasing GC, in the hope of continuing the single-token mechanism. While some users expect the release of GC. All of them provide rational reasons and sound suggestions. We’ve collected and concluded the views and made different schemes. The merits and shortcomings are listed below as follows:
Scheme1: Launch GC As the Mainnet Token, GT Only Used As Platform Token
Gate.io will launch a certain amount of GC used as the mainnet fuel and staking rewards, among which some will be airdropped to GT holders, some will be airdropped to the team and some will be used as staking rewards. Users who participate in PoS mining will gain GC rewards. The GC that is airdropped to the users and the team is scheduled to have a linear release in 10 years.
The Merits of Scheme 1
-The mainnet and the platform will be decoupled from each other ;
-GC will be operated as mainnet token and applied to be launched on other platforms;
-Won’t be needed to burn part of GT from the current total amount when using GC as staking rewards.
The Shortcomings of Scheme 1
-GC will take a part of the stake from GT, causing potential influence on GT value;
-The mainstream platforms may fail to support the launch of GC with GT already released;
-GC will not have price support at the primary stage after the launch given it hasn’t yet been released on any exchange platforms.
-GC will have linear inflation; with the increasing airdrop, release to the team and PoS mining, the inflation rate will be high at the initial stage so the downward pressure of price will be high after its launch.
Scheme 2: Adopt GT Both As Platform and Mainnet Tokens Without Issuing GC
GT will enjoy the benefit from ecos ystem as being the platform token and will be bought back and burnt in a regular period. Besides, it will also be used as the mainnet transfer fuel and as staking rewards. In order to persist in the rule of “absolute deflation of GT”, 30 million GT will be burnt from the team’s ecos ystem or GT fund for the staking rewards in the upcoming 10 years or more. GT holders are able to participate in the PoS mining to gain GT rewards.
The Merits of Scheme 2
-GT will enjoy both the merits of being the platform token and GateChain mainnet token. As it has been known among the community, it is convenient to further popularize GT;
-GT holders are able to directly participate in PoS mining to gain GT rewards;
-GT has been released on several mainstream platforms so it has a promising ecos ystem and strong price support;
-More GT will be burnt before the official launch of the mainnet.
The Shortcomings of Scheme 2
-If GC is used as the staking rewards, it will require mining 1–2% of total amount each year to maintain the network safety and stability;
-To alleviate the issue as described above, a part of GT will be burnt for the staking rewards in the upcoming 10 years or more. Additionally, the protocol will be updated to halve the production within 10 years to further lower inflation. Meanwhile, as the total amount will be reduced after the burn, Gate.io will continue to buy back and burn GT, guaranteeing to not breach the rule of “absolute deflation of GT”, while sustaining a healthy inflation rate.
Voting Solutions on the GateChain PoS Incentive Scheme
We have received lots of feedback on the GateChain public chain solution, which we highly appreciate. Despite various opinions, it is a common desire for each and every GT holder that GateChain and GT are designed and operated in an appropriate manner to best serve our users. To ensure that our decisions reflect the thoughts of most of our users, we have decided to launch a GateChain governance vote where GT holders can cast their votes on whether to release GC and on the final PoS incentive scheme.
We have proposed two schemes with three solutions for this vote. Scheme 1 includes one solution (Solution 1) and Scheme 2 contains two solutions (Solution 2 and Solution 3). Scheme 1 (Solution 1) will be picked up if it is voted by more than 50% of our users, while Scheme 2 will be adopted when voters who choose for Solution 1 and Solution 2 account for over 50% of the total and the solution with a higher number of voters will be chosen.
Solution 1 (Scheme 1): Issue 300 million GC as mainnet token, with 40% airdropped to GT holders, 20% airdropped to the team, and another 40% for staking rewards. GC tokens are given through PoS mining with regard to staking rewards while GC tokens airdropped to GT holders and the team would be released linearly over the next 10 years.
Solution 2 (Scheme 2.1): Adopt GT both as platform and mainnet tokens without issuing GC. Take 30 million GT tokens from the team for staking rewards in which GT tokens are given with PoS mining.
Solution 3 (Scheme 2.2): Adopt GT both as a platform and mainnet tokens without issuing GC. Take 30 million GT tokens (with 20 million from the team and 10 million from the GT Safety and Law Fund) for PoS awarding in which GT tokens are given with PoS mining.
Your participation is of great importance for the development of GataChain. We hope every GT holder can consider all elements of the argument thoroughly before casting their vote.
After GateChain is launched, we will focus our efforts on cross-chain implementation, trying to connect GataChain with BTC，ETH，Cosmos，Polkadot and Zcash networks, enabling our users to enjoy the high market capitalization, smart contracts, Decentralized Finance of those networks while making sure their capital is secured with GateChain.
Thanks for your participation. We will seek to provide better services for you going ahead!
1. Participants: all the GT holders on Gate.io 1 GT=1 vote
2. Vote allocation: For every participant, their vote equals the average 14-day GT holding including assets in Lending/Borrowing Market, and the GT bought with USDT borrowed from Margin Trading, however, GT borrowed from Margin Trading is not allowed. The user’s votes will be calculated based on the average 14-day GT holding within two hours after the listing vote. Thus, please don’t make any changes to your GT holding before the counting of the votes.
For example, Bob is a new GT holder, and he buys and holds 14000GT one day before the sale. Therefore, his average 14-day GT holding will be 1000GT 14000GT/14 days, and he will have 1000 votes.
3. Voting tool: The only GT is supported. Every KYC participant can vote for one solution only.
4. After the vote, all voters will be rewarded with an airdrop.
5. Rewards will be given for each voting activity:
（1）Special rewards: Among the first 1000 voters, 10 voters will be randomly selected whose VIP levels will be upgraded by 3 tiers.
（2）Airdrop tokens: After the vote, tokens will be airdropped. All voters, no matter which solution they vote for, will have an opportunity to win tokens. The airdrop will be ratioed according to how many votes of the voter account for the votes in total.
(1) Cheating: Gate.io will cancel the votes of an account if any cheating is detected or reported by other users and confirmed. The account will no longer be qualified for the vote if more than three cheating records have been registered.
Gate.io reserves the final right to interpret this activity.
May 10, 2020