A total of $1.9 billion worth of tokens have been burned, with GT experiencing a 61% deflation. How does this support token economics?

GateToken(GT)The on-chain burn for Q4 2025 has been completed, with 2,163,900 GT burned, valued at over $26.92 million. Since 2019, a total of 184,819,426 GT have been burned, with a total value exceeding $1.9 billion. The total supply has decreased by 61.61% from the initial 300 million tokens. This ongoing burning mechanism is reshaping GT’s token economic model.

Long-term Implementation of the Burning Mechanism

GT’s burn is not a one-time event but a continuous mechanism since the launch of GateChain mainnet. The cumulative burn data demonstrates the strength of this commitment.

This means GT has burned over 60% of its original total, with the remaining circulating supply being continuously compressed. From a market perspective, this supply contraction creates conditions for value support.

Ecosystem Applications as Support for Burning

The sustainability of the burn mechanism requires genuine demand support. GT’s value is derived not only from the burn itself but also from its practical applications within the ecosystem.

Ecosystem application development

• Gate Layer launched as the underlying public chain, with GT as its sole Gas token
• Gate Perp DEX provides derivatives trading scenarios
• Native applications like Gate Fun and Meme Go are implemented, increasing on-chain interactions

GT usage scenarios

• Payment of transaction fees
• Gas fees for on-chain interactions
• Governance participation
• Incentives within the ecosystem

Currently, GT is priced at $10.26, with a market cap of $822.23 million, ranking 71st globally. The 24-hour trading volume is $3.66 million, indicating certain market liquidity.

Positive Cycle of Deflation and Demand

From an economic perspective, GT’s burn mechanism creates a potential positive feedback loop. Continuous supply contraction, coupled with demand growth driven by ecosystem expansion, could form a more tightly integrated economic model.

According to official statements, Gate will continue to implement long-term, stable burn mechanisms under compliant conditions to promote deflation. This means the burn will not be interrupted by market fluctuations.

Personal opinion: This long-term commitment is more credible than temporary burn plans in the market. The key is whether ecosystem applications can truly drive on-chain demand growth; otherwise, more burns are just a supply-side story.

Future Directions to Watch

Based on current information, several areas merit attention:

• The speed and actual usage of Gate Layer’s ecosystem applications
• Whether demand for GT in on-chain interactions matches the burn volume
• The number of real interactive users and daily active data within the ecosystem
• How the burn mechanism balances with token inflation pressures

Summary

GT’s burn mechanism has been in place for 7 years, with a total burn value of $1.9 billion and a deflation rate of 61.61%, demonstrating persistent execution. However, burn is only a supply-side story; the real value support comes from practical applications within the Gate ecosystem and on-chain demand. The ecosystem is gradually improving, and GT as Gate Layer’s Gas token has clear use cases. The combination of burn and ecosystem development is more convincing than burn alone. The key is whether ecosystem applications can truly drive on-chain activity and demand for GT.