Gate.io Launches Layer 2 “Gate Layer” With Dual-Deflationary GT Model
Crypto platform Gate.io has the launch of its new Layer 2 network, Gate Layer, alongside a major update to the tokenomics of its native token, GT. The move is designed to expand GT’s role in the ecosystem and strengthen its deflationary model.
Built on the OP Stack and fully compatible with the ETH Virtual Machine, Gate Layer can process over 5,700 transactions per second with one-second block times, according to the company.
Transaction costs have also been significantly reduced, with Gate.io stating that one million transfers on the network would cost less than $30—a fraction of what similar activity would cost on rival chains.
A central part of the rollout is the adoption of GT as the exclusive gas token on Gate Layer. Every transaction will require GT, giving the token new utility beyond its role on the platform.
The updated design introduces a dual-deflationary mechanism, combining ongoing scheduled burns with automatic token reductions tied to on-chain activity.
Gate.io disclosed that more than 180 million GT—about 60% of the token’s original supply—has already been permanently burned. The platform said this structure is expected to tighten supply while driving demand through network usage.
As part of its broader “All in Web3” strategy, Gate.io is also preparing a suite of applications for Gate Layer, including Perp, a perpetual futures platform with platform-level liquidity; Gate Fun, a no-code token launch tool; and Meme Go, a real-time meme token hub.
With this launch, Gate.io joins platforms such as Coinbase and Binance in developing proprietary Layer 2 networks to capture on-chain activity and expand ecosystem control.
Gate’s combination of a high-performance chain and a strengthened deflationary token model positions it to compete directly in the crowded L2 space. Similarly, approach, a move expected to drive demand for its native token, DOT.
Gate Token Price Reaction
GT did not rally following the launch of the Layer 2 network.
CoinMarketCap reported that the asset fell 2% to $16.05 at the time of publication. This decline does not reflect community sentiment, however, with 79% of investors claiming to be bullish even as the price continues to trend lower.
Notably, the number of holders has hit a new all-time high in recent months, reaching 5,080, with a market capitalization of $1.3 billion.
Trading volume has remained minimal, with cumulative activity at $15.72 million at press time.
Product launches are not new for Gate.io. In 2023, and introduced several offerings, including spot margin trading and a Visa debit card. Gate.io has also expanded its global presence, —a partnership that continues to date.
