Gate.io Upgrades GT To Exchange Token; Plans New Token Launch For GateChain

Global blockchain asset exchange, Gate.io has announced the upgrade of their native token GT to an exchange based token. According to the announcement, GT will no longer be generated or issued through PoS or other methods. The exchange also plans to launch GC as its new mainnet token once GateChain mainnet is live. The new GC token will be generated through the PoS mechanism to serve as an incentive in the GateChain ecosystem.

“GT still remains an important part of our GateChain ecosystem. It will be upgraded to the GateChain mainnet once it goes live, later this year. Only 50 million of the unused GT will be used for mainnet development, marketing, and ecosystem construction. This part of GT will be purchased with the profit of the platform, and will not be circulated in the market. We will also start buying back GT from the market once all Gate POINTs expire and apply for the deflation model,” said Marie Tatibouet, CMO at Gate.io.

Gate.io launched the POINT system in April 2019 that has been leveraged by the users to access trading fee discounts across multiple trading services on the Gate.io platform. The new GT upgrade process will change the way POINTs are being used.

“To execute the GT buy-back scheme, the official POINTs purchase service will be closed with immediate effect. Starting August, 2020, POINTs will no longer support handling fee deductions in regular Markets, Margin Trading, and Contract Trading; POINTs will support handling fee deduction in Fiat Trading. To support our users, we will also enable fee deduction with POINTs in other services such as margin lending and borrowing until all the POINTs are consumed; GT will be used for handling fee deductions in most cases after that,” Marie concluded.

The exchange revealed that there will be no further release of GT. The exchange will apply for a deflation model and start the GT buy-back process. The 200 million GT allocated for PoS mining will be burned completely. The GT buy-back scheme will start from September 1^st, using the profits from Regular Markets, Margin Trading, and Contract Trading.