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What is Gate Token (GT)?
Luis Clark
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Luis Clark
What is Gate Token (GT)?
Gate Token is the native token of the GateChain mainnet, which is being developed by the exchange Gate.io. Gate.io adopted GateChain 3 years after its inception, breathing a new life into the platform as well as allowing GateChain the necessary means for development. Let’s take a look at how GateChain and Gate.io work hand-in-hand to sustain and improve each other.
With the rise in popularity of Bitcoin, Ethereum, and other altcoins, more people are turning to cryptocurrency as an investment. The cryptocurrency market continues to grow, despite volatility, and is becoming more widely adopted.
Although the cryptocurrency market is primarily independent and decentralized, there is still a need for proper systems through which people can trade these cryptocurrencies. There are still no international regulations or coordination for this form of currency, but international bodies are starting to take note. They are developing risk assessments and policy responses to the growing popularity of cryptocurrency.
Sure, simple wallet-to-wallet transactions worked well enough when there were only a handful of crypto tokens in the market like BTC and ETH held by a few individuals. But today, cryptocurrency exchanges are necessary to maintain efficient trading when there are more than 83 million crypto wallets in circulation.
GateToken GT Market cap
The Gate Token is the native token of the GateChain mainnet. The Gate Token is used to pay the gas fees on the blockchain and is also used for staking. The total supply of Gate Token is capped at 1 billion, 300 million of which are currently in circulation. The 1 billion mark is expected to be reached in ten years time.
Amongst the 700 million left, 200 million Gate Tokens are designated to be staking rewards. Another 200 million will go towards building and developing the ecosystem linearly over the next ten years. Similarly, 100 million will go into market expansion and 200 million in development and research over the ten-year period.
The Foundation of Gate.io
Gate.io is a crypto exchange founded eight years ago by Han Lin. In an open letter written by Lin on the 8th anniversary of Gate.io, he explained how the exchange started out as a simple venture to allow people to trade bitcoin. Three years later, they made the GateChain mainnet their official network. GateChain was founded by Thomas Kofler and Wassilios Lytras, who were dedicated to the concept of creating a system that would make transactions safer, easier, and cheaper for the users.
Today, Gate.io supports 1,300 trading pairs, which is astoundingly higher than any other exchange today. It has a trading volume of $2.8 billion as of June 2022. However, it is a lot less popular than platforms like Binance because it has a 0.2% transaction fee compared to the 0.1% at Binance. It also has 0.0005 BTC as a withdrawal cost, whereas Binance only has 0.0002 BTC as a withdrawal cost.
Gate.io has lots of active tokens, making sure your trading experience is super smooth. You can easily buy GT tokens and keep them safe while also securing your profits from trading.
How does Gate.io Maintain Security?
The security of Gate.io is based on third-party audits, data encryption, firewalls, anti-DDoS mechanisms, whitelisting, 2-factor authentication, and anti-phishing codes. With these many layers of security, it is nearly impossible for theft and fraud to occur. The last time the platform had a security breach was in 2015, seven years ago!
Gate exchange and Future Trading
Gate.io plans to leverage its exchange to increase the relevance of the Gate Token. Gate Token is and will remain the main currency of the GateChain network and will always be used for transaction fees. Projects that publicly collect funding on the GateChain network must use Gate Token, and their tokens are locked to GateChain. Similarly, projects with private sales information published will have to hold and lock Gate Tokens.
All listed projects on Gate.io will be required to hold and lock Gate Tokens, and the amount they hold will be visible to the general public. VIP buyers will pay their monthly fee in Gate Tokens. All of these steps ensure that Gate Token will always remain relevant and continuously accumulated by projects, limiting its supply and pushing up its price.
Gate Exchange also supports future trading and has some of the best rates in the market for its users. There could not be a sounder investment advice than choosing Gate.io to trade cryptocurrencies, since the asset safety and passive income opportunities on this exchange are great.
What is GateChain?
As you might have already guessed, GateChain uses Proof-of-Stake, a consensus mechanism, to maintain its network. The blockchain has the ability of asset issuance, allowing users to mint their own tokens. It also uses multiple signatures technology, allowing multiple people to share an account, which means you can run a joint account with your family or use it to run a business.
GateChain has a vault system, allowing the safe storage of assets and ensuring 100% privacy and theft protection. One of the biggest advantages of GateChain is that dApps from EVM (Ethereum Virtual Machine) can be easily ported to GateChain, allowing GateChain to import a huge variety of digital assets from the Ethereum blockchain to enhance its own usability.
GateChain allows users to buy GateToken through secure and decentralized trading facilities. GateChain promotes crypto lending while promoting asset safety for GT holders.
What Makes GateChain Special?
The most important feature of GateChain is its transaction speed. With a whopping 2.745 transactions per second, GateChain is 200 times faster than Ethereum! GateChain has cross-chain abilities – meaning it can bridge all the other smart chains out there, instantly making it the better choice. Furthermore, millions of users on Gate.io make it more sensible for developers to port their dApps to the blockchain.
The usability and application of any blockchain technology depend a lot on how affordable and accessible it is to its users. The transaction fees on GateChain are extremely low, costing only $0.0001 per transaction, a number that by far surpasses the cost-effectiveness of other blockchains like Binance Chain and Ethereum.
The different types of wallets that GateChain allows also make the platform very diverse, with wallet types ranging from mobile wallets, web wallets, and command-line interface wallets to wallets that have multiple signatures and hardware wallets.
What are dApps?
dApps are one of the most exciting innovations on the blockchain yet. They are decentralized applications that run on a system of computers instead of a single computer. Therefore, they are not under the authority of any single entity and are instead authenticated and maintained by thousands of computers on the blockchain. They can be used for all sorts of applications like sharing media, gaming, and communication.
The most exciting thing about dApps is that they are free from any form of censorship or outside control. They use the blockchain’s inherent technology to provide users with security. The reason why you haven’t seen any popular use cases yet is that existing on a blockchain makes dApps very difficult to develop.
Changing code is hard, so it’s tough to agree on what to do and make the application bigger.
The GateChain network currently does not have a lot of dApps. Still, continuous development and rapid innovation will ensure that its ecosystem will soon be populated with dApps of all kinds.
What is DeFi?
Before we go any further, DeFi is a term often heard and seen on the internet, and it is necessary to know what it means before delving further into GateChain and Gate Token. DeFi stands for Decentralized Finance, a technology geared toward decentralizing finance using blockchain technology.
At its core, it is designed to remove mediators like banks and governments from financial transactions and ensure that anyone with an internet connection can easily own and maintain a wallet to make fast and reliable transactions. However, DeFi is still in its early stages of development. It is entirely unregulated. Thus, the space is infested with hackers and scammers of all sorts. Nonetheless, decentralized finance is expected to grow at an exponential rate in time.
GateChain HippoDeFi
HippoDeFi is built on the GateChain system and maintains a huge catalog of DeFi projects by providing users with exchange rates and liquidity information. It allows swapping with all mainstream blockchains and popular platforms possible.
The asset bridge will enable you to transfer your digital assets from all blockchains that support the Ethereum Virtual Machine technology. Like traditional DeFi systems, it allows you to stake your tokens and rewards you for providing liquidity by giving different rewards. This way you can hold your GT token and earn passive income.
You can put your GT token into different pools and lock-up programs without facing any penalties if you withdraw it early.
GateChain Magic Box
Unlike other blockchains like Ethereum, there are no minting fees on GateChain; through Magic Box, artists can mint their NFTs for free. The low transaction fees also promote the trading of NFTs, making the process a lot easier and more bearable.
There are over 300,000 NFTs that have been minted on the platform, and Magic Box has partnered with well-known NFT artists, which include NBA legends like Allen Iverson and the Bored Ape Yacht Club.
Open markets with low fees are necessary to promote the future of NFTs. Allowing users safe trading with safety updates on a monthly basis goes a long way towards securing the future of GateChain and its unique token.
Gate Grants
Another unique feature of the GateChain network is that it has a grant system to promote developers. Interestingly enough, the network offers grants to projects regardless of whether they are developing applications for GateChain or not. They provide $10-100k to projects as seed money. Furthermore, they open the project up to other funding sources like Gate.io labs, Gate.io Startup, and venture capitalists. Technical support is also provided to project owners.
The GateChain network is currently prioritizing the following types of projects:
- Decentralized Exchange (DEX)
- Loan providers
- Derivatives platform
- Yield aggregator
- Cross-Chain Assets
- Oracles
The Future of Gate.io, GateChain, and Gate Token
The Future of Gate.io is secure since it holds a special position amongst crypto exchanges. Its collection of coins is the largest to date, with various discounts and special privileges for people who hold Gate Token. In an unfortunate turn of events, however, the platform was banned in the US and Canada. It is also overwhelming to new users since the huge option of projects to invest in can confuse people new to the cryptocurrency space.
With Gate.io becoming one of the top crypto exchanges, it is inevitable that Gate Token and GateChain will also follow the success of their parent exchange. The GateChain mainnet grows in popularity with each passing day.
With many people still on the stands about the future of this project, will GateChain be able to translate its current popularity to future success? Let us know in the comments.
Our extensive analysis of the different Cryptocurrencies doesn’t stop here. You can also check out our “What is Holo?” guide to know more about this Meme Coin that Skyrocketed in 2021.
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