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.
The GNS token has developed over its lifetime iteratively in ways which help the growth and efficiency of the protocol. Initially it was exclusively minted and burned to back trading - however it was recognised that during extreme market conditions this could result in unnecessary volatility. In its present iteration:
- It supports the liquidity efficiency of the DAI vault by minting rewards for GNS/DAI LP providers, 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 is burned when the DAI vault becomes sufficiently overcollateralized to offer a suitable buffer for DAI vault stakers - currently this is 130%. This is done to counter the inflation from GNS/DAI LP rewards and NFT bot 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 the ultimate backstop to traders winning on gTrade (not through minting any more, but through potential OTC sales of the protocol wallets reserves if the situation requires it).
- 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.
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 these incentives directly to the GNS single staking pool.
- 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 -> 25% of the initial supply burnt until now (in one year).
Last modified 3mo ago