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GNS Token
The $GNS utility token powers our whole ecosystem.
gTrade, our first product, wouldn't exist without the GNS token ($GNS). It acts as a mechanism of liquidity efficiency which helps us capitalise on our resources and offer the best trading experience - as well as returns for those participating in the ecosystem. Over its lifetime it has been net deflationary.
It started initially as the $GFARM2 token on Ethereum, which was fairly distributed in an ETH pool and a GFARM2/ETH LP pool. The dev fund and the gov fund had a 5% share of the token distribution (10% total). It was later bridged to Polygon, and had a 1:1000 split to $GNS.
- It supports the liquidity efficiency of the DAI vault by minting rewards for NFT bots and affiliates, allowing the DAI to remain within the vault. This adds stability by reducing vault drawdowns and supporting its over-collateralization.
- It can be burned when the DAI vault becomes sufficiently overcollateralized to offer a suitable buffer for DAI vault stakers. This is done to counter the inflation from NFT bot and affiliate rewards.
- It ensures that people supporting the community early on will not have the percentage of their platform interest diluted by a large whale in future - it gives an equal playing field to community support.
- It is a backstop to traders winning on gTrade, as $GNS can be minted to recollateralize the gDAI vault (at a maximum inflation rate of 18.25% per year)
- It is going to be one of the main ways to govern the protocol.
Until now, over 20% of the supply has been burnt through organic deflation generated by gTrade.
- Supply cap: 100,000,000 GNS -> used as failsafe mechanism, should never be reached.
- Initial supply: 38,500,000 GNS
- Total supply (= fully diluted): Dynamic, see Dune Dashboard -> 20% of the initial supply burnt until now (in two years).
Last modified 1mo ago