The launch of Gambit’s Mainnet Beta is fast approaching and we’ve spent a lot of time planning the rewards and liquidity mining programme. The goal of the programme is to grow the protocol at a sustainable pace and for the long term benefit of the project.
We’ve also received advice from our peers and taken a few points into consideration:
- GMT tokens were sold as governance tokens during the whitelisted presale that took place between 4–6 March 2021
- For the sake of regulatory compliance, fee-bearing tokens should be given free of charge to network participants
With these points in mind, we discussed the following for the liquidity mining programme:
- All 598,531 GMT tokens that are not yet in circulation, including vested team tokens will be burnt entirely
- This means that all GMT tokens have been fully distributed and there will not be any inflation of GMT tokens
- Fee-bearing tokens with the symbol xGMT should be donated through a distribution to anyone who provides liquidity for the GMT/USDG and xGMT/USDG PancakeSwap pairs
Important: There will not be any sale of xGMT tokens, the team will not receive any payment for xGMT tokens
The Gambit protocol will generate fees for the following events:
- 0.2% fees for minting and burning of USDG
- 0.2% fees for swaps through the protocol
- 0.1% fees for stablecoin swaps
- 0.1% fees for opening and closing of leverage positions
- 0.06% * (utilisation ratio) borrowing fees, every 8 hours, for leverage positions
The fees will be distributed in the following percentages:
- 20%: xGMT holders
- 20%: USDG holders
- 50%: Deposited back into the protocol to over-collaterise USDG
- 10%: XVIX project
The xGMT and USDG tokens are designed to accumulate fees automatically and without a separate staking step, these fees will be claimable through the Gambit staking page. The fees will continue to be received even while being staked in the GMT/USDG or xGMT/USDG pool.
GMT remains as the governance token of the Gambit protocol, the GambitDAO will be set up to manage the whitelisting of assets, the allocation of fees and the undistributed xGMT tokens.
The current fee distribution is only fixed for xGMT holders and the XVIX project, all remaining fees will be managed by GambitDAO through the voting of GMT holders.
Since we have burnt the team’s GMT tokens entirely, the team will not have any outsized voting power in GambitDAO.
xGMT will have a maximum supply of 100,000 tokens and will be distributed in the following proportions:
- 72,000 tokens will be distributed over nine months to all liquidity providers of the GMT/USDG and xGMT/USDG PancakeSwap pairs
- 23,000 tokens will be managed by GambitDAO
- 5,000 tokens will be distributed as team tokens and vested over two years, the vesting will begin one month after the launch of Gambit’s Mainnet Beta
xGMT will be distributed to liquidity providers based on the below schedule:
- GMT/USDG pair: 12,000 xGMT tokens
- xGMT/USDG pair: 24,000 xGMT tokens
- GMT/USDG pair: 8,000 xGMT tokens
- xGMT/USDG pair: 16,000 xGMT tokens
- GMT/USDG pair: 4,000 xGMT tokens
- xGMT/USDG pair: 8,000 xGMT tokens
With the team’s commitment to the Gambit protocol, we will use 300,000 BUSD tokens from the team’s funds to mint 300,000 USDG at launch. 50,000 USDG will be paired with xGMT to form the initial xGMT/USDG liquidity. The starting price of xGMT will be 5x the price of GMT.
This liquidity from the team will not be staked and will not earn xGMT tokens.
Once liquidity has built up for the xGMT/USDG pair, the team will remove the initial provided liquidity:
- All remaining xGMT tokens will be returned to the Treasury
- Any excess USDG received during the process will be donated to the Gambit protocol for the purpose of over-collaterising USDG.
GMT Burn Transactions
Since the GMT tokens not in circulation were locked till 21 April 2021, the only way to prepare for launch and to proceed with the staking for xGMT tokens was to extend the time-lock to the maximum allowed numerical value and to burn the admin keys, these two transactions have been sent:
The supply has been updated on Coingecko: https://www.coingecko.com/en/coins/gambit
We will be notifying sites that have listed GMT that the fully diluted supply is now 401,469 tokens.
Staking will begin on the same day as the Gambit Mainnet Beta launch.
As always, we are grateful for all the support extended to us from the Gambit community. We are excited for Gambit’s Mainnet Beta launch and we cannot wait to see the protocol prove itself under production conditions.
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