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Gate Launches Layer 2 Network and Upgrades GT Tokenomics

3 hours ago
Bitcoin Ethereum News

Gate has launched Gate Layer, a new Layer 2 network and upgraded its GT tokenomics with staking, gas utility, and a dual burn model.

 

Crypto exchange Gate has rolled out Gate Layer, a proprietary Layer 2 blockchain designed for speed and cost efficiency.

Alongside this launch, the company has planned a major upgrade to GT tokenomics and is expanding the role of its native token in network operations.

Gate Layer Expands Web3 Strategy

Gate describes Gate Layer as a foundation for its “All in Web3” approach. The network will host a range of tools, including Perp, a perpetual trading hub that offers centralised-exchange liquidity. 

It also introduces Gate Fun, a no-code incubator that allows creators to launch tokens without advanced technical skills. 

In addition, Meme Go will provide users with a real-time tracker for memecoins across chains.

These additions show Gate’s goal of moving beyond simple exchange services. By building infrastructure that supports a broader range of on-chain activity, the company is setting itself up to capture more engagement from both retail and institutional users.

Utility, Staking, and Deflation

The biggest update in this overhaul is the role of GT as the exclusive gas token for Gate Layer. 

This change means that every transaction and network fee will be powered by GT, which is embedding the token deeply into the ecosystem.

Gate has also maintained its dual deflationary model. GT undergoes scheduled buybacks and burns, which are paired with on-chain burning mechanisms. 

So far, more than 180 million GT have been burned, which accounts for about 60% of the original supply. 

Another major addition is staking. Users who lock their GT can help stabilise gas fees and support the network’s security. In return, they earn rewards in a balanced system that benefits both the network and its community. 

This approach is similar to models used in other Layer 2 projects like Polygon, where token staking supports governance and performance.

GateChain Node Updates

Gate has also introduced updates to GateChain nodes. Consensus accounts now have greater flexibility in setting maximum commission rates. 

These accounts, which were previously capped at 1 per cent, can now define their own commission levels. This allows for mining income to be more competitive and stable.

Users can join as GateChain nodes, participate in consensus mining and earn rewards. 

The update also makes it easier for node operators to provide services by offering guidance on installation, delegation and reward sharing. 

Competing With Other Exchange Layer 2s

The launch of Gate Layer follows a much more general industry change. 

Major exchanges like Coinbase have already introduced their own Layer 2 solutions, like Base. By creating dedicated Layer 2 networks, exchanges capture more activity within their own platforms, rather than depending on external chains.

For Gate, adding GT tokenomics with its new infrastructure creates a unified system. 

Traders gain faster and cheaper transactions, while token holders benefit from staking opportunities and deflationary mechanics. 

Developers are also rewarded for building within the network, thanks to tools and liquidity provided directly by the exchange.

Source: https://www.livebitcoinnews.com/gate-launches-layer-2-network-and-upgrades-gt-tokenomics/