Gate emphasized that the true differentiation lies not only in speed and low transaction costs but also in the ability to provide instant liquidity and an existing user base. Additionally, they highlighted the importance of offering practical DeFi products. At the same time, the upgraded tokenomics mechanism positions GT not merely as an exchange token but also establishes GT as the evolving “fuel” of Gate’s Web3 ecosystem.
Competitive Pressures
Major players have already rolled out their own Layer-2 (L2) solutions—such as Coinbase’s Base, Binance’s opBNB, Kraken’s Ink —and the launch of Gate Layer marks a critical milestone in Gate’s Web3 infrastructure strategy. According to the announcement, Gate Layer is built on the OP Stack and is fully EVM-compatible. It demonstrates impressive performance benchmarks: over 5,700 transactions per second (TPS), 1-second block times, and costs of around $30 per million transactions.
TPS of some L2 networks on OP Stack. Source: L2Beat
However, what makes Gate’s L2 stand out is not just the technical metrics—even if, as they put it, these are “the most competitive metrics in the space.” Unlike Base or opBNB, Gate Layer combines performance with purposeful utility to create a true differentiator in the Layer-2 race.
Specifically, Gate Layer goes beyond raw throughput by expanding cross-chain connectivity through LayerZero. This allows developers to deploy applications once, reaching users across Ethereum, BSC, Polygon, and more. Coupled with the advantages of being a major exchange, Gate Layer can provide developers with immediate liquidity. The diverse products like Perps DEX, Gate Fun, and Meme Go enhance this.
“That blend of speed, cost, and real adoption channels is where we think we can stand apart,” Dr. Han Lin, CEO of Gate told BeInCrypto.
GT Token: From Exchange Token to Web3 Ecosystem Fuel
Alongside the launch of its new L2, Gate also unveiled a comprehensive upgrade to the tokenomics of GT (Gate token). GT will now serve as the sole gas token for Gate Layer. It will continue its dual-burn model, which includes scheduled buybacks and burns combined with on-chain burns.
Lin shared with BeInCrypto that over 180 million GT have been burned, equivalent to 60.18% of the initial supply. This is considered one of the deepest deflationary reductions in the industry.
Typically, token burns reduce supply to create scarcity. With GT increasingly used across the Gate ecosystem (driving demand), this dynamic could positively influence its price. However, if scarcity alone were the focus, GT would lack the sustainability needed for long-term value.
According to Gate’s representatives, this comprehensive tokenomics upgrade represents an evolution—transforming GT from a “CEX token” into the backbone of a broader Web3 ecosystem.
“Our goal is to make GT indispensable: powering transactions, incentivizing developers, and eventually securing the network through staking,” Gate told BeInCrypto.
The launch of Gate Layer and the redesign of GT tokenomics highlight Gate’s long-term strategy: rather than focusing solely on exchange operations, Gate seeks to build sustainable value through infrastructure. In the increasingly competitive L2 race, Gate’s edge lies in its technology and the synergy of high performance, multi-chain connectivity, and an existing user ecosystem.
If Perps DEX, Meme Go, and GateSwap bring liquidity and traffic, GT will have a clear on-chain demand. However, there are still existing risks, including competitive pressure from Base, opBNB… (some L2s already have large dev communities), and smart-contract security risks when opening more new products.
Gate has officially launched Gate Layer, a high-performance Layer-2 network delivering over 5,700 TPS. It is built on the OP Stack and integrated with LayerZero for cross-chain connectivity.
Gate emphasized that the true differentiation lies not only in speed and low transaction costs but also in the ability to provide instant liquidity and an existing user base. Additionally, they highlighted the importance of offering practical DeFi products. At the same time, the upgraded tokenomics mechanism positions GT not merely as an exchange token but also establishes GT as the evolving “fuel” of Gate’s Web3 ecosystem.
Competitive Pressures
Major players have already rolled out their own Layer-2 (L2) solutions—such as Coinbase’s Base, Binance’s opBNB, Kraken’s Ink —and the launch of Gate Layer marks a critical milestone in Gate’s Web3 infrastructure strategy. According to the announcement, Gate Layer is built on the OP Stack and is fully EVM-compatible. It demonstrates impressive performance benchmarks: over 5,700 transactions per second (TPS), 1-second block times, and costs of around $30 per million transactions.
TPS of some L2 networks on OP Stack. Source: L2Beat
However, what makes Gate’s L2 stand out is not just the technical metrics—even if, as they put it, these are “the most competitive metrics in the space.” Unlike Base or opBNB, Gate Layer combines performance with purposeful utility to create a true differentiator in the Layer-2 race.
Specifically, Gate Layer goes beyond raw throughput by expanding cross-chain connectivity through LayerZero. This allows developers to deploy applications once, reaching users across Ethereum, BSC, Polygon, and more. Coupled with the advantages of being a major exchange, Gate Layer can provide developers with immediate liquidity. The diverse products like Perps DEX, Gate Fun, and Meme Go enhance this.
“That blend of speed, cost, and real adoption channels is where we think we can stand apart,” Dr. Han Lin, CEO of Gate told BeInCrypto.
GT Token: From Exchange Token to Web3 Ecosystem Fuel
Alongside the launch of its new L2, Gate also unveiled a comprehensive upgrade to the tokenomics of GT (Gate token). GT will now serve as the sole gas token for Gate Layer. It will continue its dual-burn model, which includes scheduled buybacks and burns combined with on-chain burns.
Lin shared with BeInCrypto that over 180 million GT have been burned, equivalent to 60.18% of the initial supply. This is considered one of the deepest deflationary reductions in the industry.
Typically, token burns reduce supply to create scarcity. With GT increasingly used across the Gate ecosystem (driving demand), this dynamic could positively influence its price. However, if scarcity alone were the focus, GT would lack the sustainability needed for long-term value.
According to Gate’s representatives, this comprehensive tokenomics upgrade represents an evolution—transforming GT from a “CEX token” into the backbone of a broader Web3 ecosystem.
“Our goal is to make GT indispensable: powering transactions, incentivizing developers, and eventually securing the network through staking,” Gate told BeInCrypto.
The launch of Gate Layer and the redesign of GT tokenomics highlight Gate’s long-term strategy: rather than focusing solely on exchange operations, Gate seeks to build sustainable value through infrastructure. In the increasingly competitive L2 race, Gate’s edge lies in its technology and the synergy of high performance, multi-chain connectivity, and an existing user ecosystem.
If Perps DEX, Meme Go, and GateSwap bring liquidity and traffic, GT will have a clear on-chain demand. However, there are still existing risks, including competitive pressure from Base, opBNB… (some L2s already have large dev communities), and smart-contract security risks when opening more new products.
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