GNS has recently introduced many technical and tokenomic changes.
We'll leave the technical details to the techies, and focus on what has changed in the tokenomics for investors.
𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐅𝐮𝐧𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞
Before:
→ The development fund was receiving approximately 16% of platform fees.
After:
→ 100% of the development fund revenue will now be redirected to GNS staking.
𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐅𝐮𝐧𝐝
Before:
→ The governance fund was a single address, not a multi-signature system.
After:
→ A new 6 out of 11 multi-signature system introduced, replacing the current governance fund address. This is a move towards decentralization.
𝐆𝐍𝐒 𝐍𝐅𝐓𝐬
Before:
→ GNS NFTs were distributed to early community members and provided benefits like reduced trading spread, boosted GNS staking rewards, and the ability to run a liquidation/limit order bot.
After:
→ GNS NFTs deprecated against a GNS compensation.
𝐑𝐞𝐝𝐢𝐫𝐞𝐜𝐭𝐞𝐝 𝐑𝐞𝐯𝐞𝐧𝐮𝐞
The most significant change is that 100% of the revenue that was previously directed to the development fund will now be redirected to GNS staking.
This means that instead of the development fund receiving a direct cut from the platform fees, those fees will benefit $GNS stakers.
The minted GNS tokens cannot be sold for at least a year, and are eligible to be staked for protocol earnings.
The dev fund already been increased from 1.27M to 2.27M, all of which is now eligible for single-sided staking.
𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐑𝐞𝐰𝐚𝐫𝐝𝐬 𝐟𝐨𝐫 $𝐆𝐍𝐒 𝐒𝐭𝐚𝐤𝐞𝐫𝐬
The combined impact of the changes means that each staked $GNS now receiving approximately 60% more rewards compared to before.
The percentage of GNS revenue going to $GNS staking increased from ~33% to ~61%.
Here's how the APY has changed.
Before:
After:
So, if you still haven't understood how this pertains specifically to you as a GNS investor, let's draw some conclusions.
By redirecting the revenues that previously went directly to the development fund to GNS staking and compensating through token minting, the development team now has a direct incentive to increase the value and success of the GNS token.
This means:
Aligned Interests
As the developers will be earning from staking the locked tokens, their interests are now directly aligned with the token holders.
If the token appreciates in value and generates more income, it benefits both the investors and the development team.
Incentive for Growth
This can also motivate the team to work on improving and optimizing the platform to boost the token's value and staking income.
Long-term Perspective
Given that the tokens issued as compensation will be locked for a year, it indicates the team's long-term commitment to the project and their belief in its future success.
