Gate burns 2.16 million GT, with a total destruction scale exceeding $1.9 billion over 7 years

According to the latest news, Gate has just completed the on-chain burn of GT in Q4 2025, with 2,163,900 GT (worth $22.28 million) transferred to the burn address. This burn continues Gate’s regular burning mechanism established since 2019 and once again highlights the exchange’s emphasis on tokenomics design.

How Significant Is the GT Burn

Historical Burn Data Overview

Based on on-chain data, Gate has been conducting GT burns for over 7 years. Since 2019, a total of 185 million GT have been burned, valued at up to $1.9 billion. Considering the total supply of GT is 300 million, this means 61.5% of the tokens have been permanently destroyed.

From another perspective, the actual circulating supply of GT is now only 115 million, with a market cap of $1.186 billion. This number is much smaller than many people imagine. The burn mechanism has effectively turned GT into an asset that is “becoming increasingly scarce.”

Burn Frequency and Regularity

Gate has shifted to quarterly burns. The 2,163,900 GT burned in Q4, on average, indicates that each quarter’s burn size is in the millions. This regular and transparent burn mechanism is more likely to gain market recognition compared to irregular or hidden burns.

What Does This Burn Mechanism Mean

Impact on Token Economics

Deflationary mechanisms are a common value support method in crypto projects. GT’s burns effectively remove tokens from circulation, theoretically increasing the relative scarcity of the remaining tokens. Especially when the burn reaches 61.5% of the total supply, this effect becomes quite pronounced.

However, it’s important to note that burning is only a supply-side measure. Demand-side factors (such as exchange activity, user growth, ecosystem development) are the key determinants of GT’s long-term price trend.

Practical Significance for Investors

• Increased Scarcity: Each burn reduces the total supply, potentially increasing the value of tokens held
• Transparency: On-chain burns can be verified by anyone, making them more convincing than centralized burn commitments
• Long-term Commitment: Seven years of regular burns demonstrate Gate’s serious commitment to this mechanism, not just a temporary measure

Market Context and Outlook

According to relevant data, GT’s current price is around $10.28, ranking 71st among cryptocurrencies by market cap. The 24-hour trading volume is approximately $3.67 million. While not a highly popular coin, as an exchange platform token, GT’s value mainly derives from the development of the Gate ecosystem.

From the perspective of the burn mechanism, Gate is showing its commitment to maintaining the token’s value through concrete actions. This regular burn, combined with platform growth, theoretically provides long-term support for GT. Especially amid cyclical market fluctuations, this systematic deflationary design helps balance supply pressures.

Summary

Although Gate’s Q4 burn appears to be a routine action, it reflects a platform’s thoughtful approach to tokenomics. Burning 185 million GT over 7 years, totaling $1.9 billion, demonstrates Gate’s determination. Once more than 60% of the tokens are permanently removed, the remaining circulating supply has significantly increased in scarcity.

For GT holders, this mechanism means that long-term supply pressure is gradually being alleviated. For the broader market, it shows that a major exchange is taking a professional stance on token design. Of course, the ultimate effectiveness of the burn depends on Gate’s business performance and ecosystem development.