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GNS Token
The $GNS utility token powers our whole ecosystem.

$GNS: Our DeFi Utility Token

Introduction

gTrade, our first product, couldn't exist without the GNS token. It is at the core of its synthetic architecture, as the GNS/DAI liquidity collateralizes the DAI vault liquidity. The principle is simple, GNS tokens are minted when traders win, and GNS tokens are burnt when traders lose. Until now, about 25% of the supply has been burnt through organic deflation generated by gTrade.
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.
As the protocol doesn't have yet the necessary funds to own all the liquidity to operate the platform, it shares the trading fees generated by gTrade to incentivize the GNS/DAI liquidity pool and the DAI vault. Our long-term roadmap consists of owning more and more of this liquidity to instead send incentives directly to a GNS single staking pool. This will be a crucial component for the transition to a governance model.
Therefore GNS holders currently earn 100% of the traders losses, as they take the risk of the token being minted if traders win, and GNS/DAI stakers earn a share of the trading fees of the platform as they take the impermanent loss risk.

Summary

  1. 1.
    $GNS exists because it backs traders winning on gTrade.
  2. 2.
    It also gets burnt when traders lose to create at least an equilibrium in deflation and inflation, or deflation depending on traders performance.
  3. 3.
    It can currently be paired with DAI to add liquidity and then staked in our GNS/DAI pool to earn incentives, until the protocol owns enough liquidity to operate gTrade.
  4. 4.
    It (or a derivative like $veGNS) will have voting rights once we have transitioned to a governance model.
  5. 5.
    Once the protocol owns enough liquidity, a majority of the fees generated by gTrade (and the next products) will be sent to the $GNS staking pool.

How to get GNS tokens?

Statistics

  • Supply cap: 100,000,000 GNS -> used as failsafe mechanism, should never be reached.
  • Initial supply: 38,500,000 GNS
  • Total supply (= fully dilluted): Dynamic, see Dune Dashboard -> 25% of the initial supply burnt until now (in one year).