The liquid bitcoin hashrate protocol (LBH) that our team presented on Wednesday has raised some questions among you.
07 Jul 2023, 15:40
The liquid bitcoin hashrate protocol (LBH) that our team presented on Wednesday has raised some questions among you.
We strive to ensure that the company's activities are as transparent and understandable as possible for each of our users.
Therefore, we have gathered the most important points received from you and will answer them right now.
❓What is "ve GMT"?
✔️Ve GMT is a staking for GMT, a contract, where users can stake tokens, participate in governance, and earn additional GMT rewards for doing so.
❓Do I understand this correctly? In epoch 20 will the amount of GMT be 25% lower than now? But why does the total amount of GMT tokens decrease when the ratio of newly generated tokens and burned tokens are almost the same in the end? If I understand correctly, in the first phases more is burned than regenerated and at the end it's the same
How long is an epoch? Does the change have an impact on BTC rewards in flexible staking from GMT?
✔️It will not affect BTC rewards since they are mined by the hashrate. The burn and mint mechanism will only decrease supply over time, and it balances (mint/burn balance) at the 0.99 coefficient. The epochs do not have a time limit, there’s only a token burnt limit. This means that epoch 1 will last until 10 million GMT are burned and 8 million GMT are minted. When it happens, epoch 2 will start. And so on.
❓Just read the new Medium article that came out. What does it mean for current GMT holders?
✔️For current holders it means that you can pay electricity with discounts as usual, nothing changes for you. However, you have an additional option to stake GMT, participate in governance, and earn GMT rewards that you can use as you want, for instance, to pay electricity from them and save on electricity payments.