Overall, $GNS token design is one of the best in the current state of the market. I bet on such types of token economy in terms of sustainability and win-win for different participants(at least theoretically) First of all, the full token mechanism is not as basic as others, so I highly recommend reading this deep dive into $GNS for experienced investors: https://www.reddit.com/r/GainsNetwork/comments/10iers6/gtrade_liquidity_gns_otc_counterparty_and_gdai/
So I am going to highlight only the focal points from "investors perspective":
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Only 5% of the initial supply was allocated 5% to the development fund and 5% to the governance fund. No VCs as far as I know.
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Supply Cap is 100mln $GNS used as a failsafe mechanism, should never be reached. The initial supply was 38,500,000 $GNS and approx. 20% of the initial supply burnt until now due to the deflationary model(but short-term inflationary)
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The main point here is that the protocol makes one critical assumption. That over time, traders lose more than they gain(historical stats). The protocol empowers users to initiate trades by employing the stablecoin DAI, which is subsequently converted into $GNS and eliminated from the circulating supply forever. Over time, the number of individuals who suffer losses from leveraged trading surpasses those who emerge victorious, thereby exerting deflationary influence on the token. Upon completion of each trade, DAI is withdrawn from the platform's vault and appropriately distributed.
In simple words - when a trader loses, DAI is sent to the collateral vault, which then burns $GNS when it reaches an overcollateralization ratio of 130%. This is done to counter the inflation.
-$GNS Staking, which supports the "Revenue Sharing Model/RealYield Model" that I personally am excited about. Staker gets DAI rewards paid from platform fees.(32% of total fees from market orders on the platform)
The weak point lies in the potential for whale manipulations, which can obviously impact any token throughout all DeFi sectors. So its 5 stars for now.
Look forward to discussing other pros and cons with you in the comments.
Official Data Source of Gains Network with a bunch of meaningful info: https://dune.com/unionepro/Everthing-Gains-Network Show Less
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