GTON Capital in Detail
Please note that this documentation is a work in progress and will be updated frequently.
A New Generation of Programmable Economy
Based on the cutting-edge achievements of Web 3.0 technology, GTON Capital is building an infrastructure to advance digital capital markets.
The decentralized digital financial ecosystem has undergone several revolutions in recent years:
- 2009 - Bitcoin The origin of P2P monetary policy and the first digital reserve currency
- 2014 - Ethereum The invention of programmable finance
- 2016 - Maker DAO - DAI The creation of an algorithmic stablecoin protocol and decentralized governance
- 2019 - Rollups A solution to Ethereum's scalability problem
GTON Capital stands on the shoulders of these giants and introduces a new digital currency protocol architecture which is based on the following principles:
- Scaling L1 blockchains with an L2 rollup, where users' assets are stored in revenue-generating vaults and can be redeemed at any time.
- A multi-collateralized stablecoin with a real use case as a native currency for L2.
- Reinvestment of rollup revenue into ecosystem projects and protocol liquidity.
- Distribution of protocol and infrastructure royalties to the community.
- Governance control of protocol capitalization.
GTON Capital protocol architecture consists of:
- GTON Network - Community-governed BNB Chain rollup protocol with a multi-collateralized stablecoin as its native currency.
- GTON Dollar - Multi-collateralized stablecoin protocol with a real use case as the native currency for GTON Network rollup.
The three key components of the architecture are represented by smart contracts on the BNB Chain network and a bridge system for BEP20 tokens and for the native rollup token GCD (GTON Dollar). The minting of the native stablecoin token takes place only on the GTON Network, and through a bridge, the stablecoin is made available on the BNB Chain as a BEP20 token.
The original blockchain of the GTON utility token is Ethereum, but the bridge allows it to be transferred to the BNB Chain and the GTON Network. The protocol of the multi-collateral stablecoin GTON Dollar is used only in the GTON Network. In order to mint GCD, it is necessary to bridge tokens available as collateral to the GTON Network and lock them as CDP (collateralized debt position).
Various dApps can be deployed on the rollup, whose users will use GCD to pay transaction fees, the funds from which go to the sequencer and then to the treasury, and are further redistributed in the form of staking rewards for two types of stakers: GTON stakers (currently on the Ethereum network) and GCD stakers (on the GTON Network).
Thus, positions in GTON and GCD allow the user to participate in passive value extraction from any transactional activity on the GTON Network.
Decentralized Oracle Networks (DONs) are used on the rollup to provide applications with the necessary data (prices, events, balances etc).
The GTON protocol has a dual token model represented by the governance and utility token GTON and the collateralized stablecoin GCD:
The main utility functions of the protocol rely on the GTON utility token and governance functions. The GTON Dollar stablecoin protocol primarily uses stablecoins, but also GTON, ETH and other liquid assets as collateral with different collateralization ratios. Thus, GTON is not only a governance token of the GTON Dollar protocol (i.e. a functional analog of the DUCK token in the Unit protocol), but is also used as collateral in it. Globally, the revenues of the GTON protocol are distributed to the holders of both tokens in the proportion determined by the governance decisions of the GTON holders.
GTON issuance is capped at 21 million tokens and is deflationary, similar to BTC. Although there is an allocation for staking in the protocol, it is limited and only allows the issuance to be used initially as an additional incentive to join the protocol. In the long run, all staking rewards will be taken from the funds generated by users of the rollup and applications on it.
Rollup is monetized via dApp activity and GTON Network infrastructure.
Let's take a look at the basic use cases for the GTON network, without going into detail about the variety of applications built on top of it by third-party development teams. Consider two basic cases, the only difference being that Alice is free to use any allowed security.
I. Alice believes in the potential of the protocol and wants to use applications on the GTON network. However, she only owns BNB on Binance and does not want to sell it. Therefore, Alice bridges BNB to the GTON network and uses it as collateral to issue some GCD stablecoins. Since the stablecoin is the native token of the protocol, Alice can immediately transfer any tokens and use a variety of dApps: exchanges, lending protocols, NFT marketplace or farming services. When Alice does not need GCD to pay for transactions, she can use it for stablecoin staking to generate profit that is redistributed by the other users of the GTON network. After some time, Alice notices that her BNB has increased significantly in value. However, Alice only needs the amount of GCD she borrowed in the beginning to close the debt position. As a result, Alice ends up in a "triple win" situation: she kept her BNB, generated value from applications, and also received profit from commissions from protocol users.
Suppose in this example that Alice does not own BNB, but GTON. In this case, Alice can simply stake the token and reap rewards from the activity on the GTON network, or she can bridge it into the chain and use it as collateral, just like in case I. As we can see, cases 1 and 2 complement each other, so Alice can stake any tokens allowed by the GTON dollar governance from her portfolio as collateral, but at the same time effectively use GCD to profit from the rollup activity.
As a foundation, GTON Capital creates capital efficient technologies and products by synergizing the best elements of Web 3.0.
GTON's ultimate goal is to empower millions of users to invent and explore new experiences in decentralized digital capital markets. Business models, community structures, and collaborative creativity are being stitched together and redefined by GTON Capital to create a more sustainable, equitable, and efficient future for the global economy.