A small thing we do every quarter: deliver on our promises.

"Without accumulating small steps, one cannot reach a thousand miles; without accumulating small streams, one cannot form rivers and seas."

In the cryptocurrency world, any project that issues tokens must face the issue of tokenomics. Whether it's a native coin, governance token, utility token, or exchange token, tokenomics can be said to be one of the most important indicators for understanding the operational status of a project.

In the Web3 world, the emphasis is on decentralized governance and the openness and transparency of information, with the ultimate goal of achieving a "trustless" mechanism. However, in reality, the vast majority of projects still require teams to operate. As long as there are teams, complete decentralization is difficult to achieve; and as long as true decentralization has not yet been realized, there must be an element of "trust" present. This is the gap between ideals and reality. Apart from Bitcoin, there are almost no projects that can truly achieve complete decentralization. Of course, not being fully decentralized does not mean that a project is unsuccessful. Decentralization is just one core element of Web3, but it has never been the only measure of success.

Different projects must face the community, and facing the community means taking on the responsibility of information disclosure and transparency (which may also be an incentive) to gain the trust of the community. Are the management team and key individuals publicly identified? Is the development roadmap and its progress clear and traceable? Is the community interaction on social media genuine and trustworthy? These are all hard indicators earned through experience in the crypto space over the past few years.

The most crucial aspect is still the development of tokens linked to the project; among these developments, the easiest to quantify and the most commonly compared is token economics.

The value of a token can be seen as a bridge connecting the project party and the community. The project party can package the team in an extravagant way and present the roadmap vividly, but the value of the token is ultimately the most authentic representation. The rise or fall of the token price has the most direct impact on both the project party and the community. In terms of token economics design, is it inflationary or deflationary? Is the issuance volume limited or unlimited? What percentage does the project party hold, and what is the lock-up period? All of these factors will directly affect the market value of the token, while the market capitalization of the token reflects the operational status of the project party.

Traditional financial markets are actually the same. When a listed company announces its annual dividend, if it suddenly declares that it will not issue a final dividend for the year – no matter how much the management promises that the business is stable, investors will reassess the actual operational situation from the company's financial strategy perspective. Corporate stock buybacks, bond issuance, equity financing, treasury stock strategy investment, etc., are essentially the predecessors of token economics, and the analytical logic is actually quite similar, so there is no need to elaborate on each one.

Gate conducts the destruction of GateToken every quarter. I saw this in the early years and only felt it was a set of announcement data. To be honest, I didn't feel much about it. After all, this is not a major reform, nor is it a groundbreaking new product; it is just a long-term commitment we fulfill each season.

But later I gradually realized that this matter is actually very crucial – it is one of the indicators most valued by many Gate supporters and investors in the community. This trust comes not only from various promotions but also from this simple and stable fulfillment that can withstand the test of time.

If you have been following the announcements of Gate's GT burn every season, then please remember this article. In the cryptocurrency industry, there has never been a shortage of projects and token economics that jump back and forth and fail to deliver on their promises.

Only those platforms that can adhere to their original intentions and fulfill their promises can truly walk a long way with the community.

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