What is the issuance amount of Gelato coins?

Gelato Network's 100 million GLTO tokens, distributed among various stakeholders and subject to vesting periods, support its operations including governance, staking, and fee payments.

Dec 26, 2024 at 04:30 pm

Key Points

• Gelato Network operates on the Ethereum blockchain with a maximum supply of 100 million GLTO tokens.
• The token distribution is allocated for various purposes, including ecosystem development, team, advisors, and investors.
• Early investors and advisors received a significant portion of the tokens during the seed and private rounds.
• The tokens were distributed over a vesting period to prevent excessive market volatility and ensure long-term commitment.
• Gelato Network locked 70% of its tokens for a year and has an ongoing buyback and burn strategy to reduce circulating supply.

Issuance Amount of Gelato Coins

Gelato Network, a decentralized automation tool for DeFi, has a maximum issuance amount of 100 million GLTO tokens. The tokens are integral to the platform's operations, serving as:

• Governance: GLTO holders can participate in governance decisions and vote on proposals related to the Gelato protocol.
• Staking: Users can stake GLTO tokens to contribute to the network's security and earn rewards.
• Fees: Fees for Gelato services, such as automated task execution, are paid in GLTO tokens.

Token Distribution

The initial distribution of GLTO tokens was divided among various stakeholders:

• Seed Round: 16.6% of tokens allocated to early investors who provided initial funding.
• Private Round: 33.3% of tokens sold to institutional investors before the public launch.
• Team and Advisors: 23.4% of tokens reserved for the core team, advisors, andcontributors.
• Ecosystem Development: 20% of tokens allocated for community grants, developer incentives, and strategic partnerships.
• Reserve: 6.6% of tokens held in reserve for future initiatives.

Vesting Period

To avoid excessive market volatility and encourage long-term participation, the distribution of GLTO tokens was subject to a vesting period. The following vesting schedule was implemented:

• Team and Advisors: Tokens vested over a period of 18 months to 3 years.
• Investors: Seed round investors had a 6-month cliff, while private round investors had a 12-month cliff before tokens could be released.
• Ecosystem Development: Tokens were released gradually over a period of 36 months.

Lockup and Buyback Strategy

To further stabilize the token supply and demonstrate commitment to the project, Gelato Network locked 70% of its tokens for a year after the token distribution. Additionally, the network implemented an ongoing buyback and burn strategy, where a portion of each quarter's earnings is used to purchase and permanently remove GLTO tokens from circulation.

FAQs

• What is the current circulating supply of GLTO tokens?

The current circulating supply of GLTO tokens is approximately 20 million.

• How does token distribution affect the price of GLTO?

Large distributions or unlocks can temporarily impact the market price, but the overall impact depends on factors such as demand and market conditions.

• What are the benefits of holding GLTO tokens?

Holders can participate in governance, earn staking rewards, and support the growth of the Gelato Network ecosystem.

• How do I acquire GLTO tokens?

GLTO tokens can be purchased on cryptocurrency exchanges such as Binance, Uniswap, and FTX.

• What is the long-term outlook for GLTO tokens?

The long-term value of GLTO tokens is dependent on the adoption and growth of the Gelato Network and its underlying DeFi automation technology.