GateToken burns 1,542,910.7518074 tokens in Q1 2025, steadily reinforcing long-term value

GateToken (GT), the native token of Gate.io exchange, executed a substantial burn of 1,542,910.7518074 GT tokens during Q1 2025, according to the project’s latest on-chain transparency report. By permanently removing these tokens from circulation, Gate.io reinforces its commitment to enhancing long-term token scarcity and value accretion for holders.

This quarter’s burn event follows a quarterly revenue-sharing model, wherein 80% of Gate.io’s net platform fees are used to buy back GT on the open market for subsequent burn. With GT trading near $5.20 at the time of purchase, the Q1 allocation represents over $8 million in buybacks. Over the past twelve months, cumulative burns have exceeded 10 million GT, underscoring a consistent deflationary policy.

Analysts highlight that periodic burns serve a dual purpose: they signal robust fee generation from trading, lending, and new products—such as the recent perpetual futures launch—and they reduce circulating supply, potentially fueling price support in bullish markets. On-chain data reveals that GT’s overall circulating supply has declined by 4.3% year-to-date, while average daily volume on major exchanges has risen 22%.

GateToken holders also enjoy staking rewards, airdrop incentives, and access to VIP tiers based on GT balance. The deflationary mechanism, combined with utility-driven governance features, positions GT as both a utility and investment asset. Looking ahead, the next scheduled burn is expected in early Q2 2025, contingent on platform performance and fee accumulation.

While token burns alone do not guarantee price appreciation, the consistent reduction in GT supply provides a favorable backdrop for long-term holders. Investors are advised to watch upcoming product launches—such as the cross-chain margin trading beta—and quarterly burn announcements to gauge sustained value reinforcement.