$GNS is the utility token at the core of the Gains Network ecosystem, primarily associated with the decentralized leveraged trading platform, gTrade. Functioning as a dual-purpose token, $GNS plays a pivotal role by providing utility within the platform while also offering users ownership in the protocol through governance and revenue capture.

$GNS addresses various challenges within the Gains Network ecosystem and the gTrade platform. Firstly, it serves as a mechanism for liquidity efficiency, optimizing the use of resources and enhancing the overall trading experience. Additionally, $GNS enables users to have ownership and governance rights, ensuring a more inclusive decision-making process. The token also mitigates potential dilution of platform interest for early community supporters, fostering an equal playing field. Furthermore, $GNS acts as a countermeasure to inflation, stemming from factors like oracle bots and affiliate rewards, contributing to the overall stability of the ecosystem. Lastly, in the event of traders winning on gTrade, $GNS can be minted to recollateralize the gDAI vault, acting as a backstop.

$GNS tokenomics and risks

$GNS has a capped total supply of 100,000,000 GNS, functioning as a failsafe mechanism. The initial supply stands at 38,500,000 GNS, and the total supply is dynamic, evolving over time. Presently, 20% of the initial supply has been burnt through organic deflation generated by gTrade over a span of two years.

However, users and investors need to be aware of potential risks associated with $GNS. These include the inherent price volatility typical of cryptocurrencies, which can lead to gains or losses for token holders. The success of $GNS is also contingent on the adoption and usage of the gTrade platform; low adoption rates may impact the token's utility and value. Regulatory uncertainties in the cryptocurrency space, potential vulnerabilities in smart contracts, and competition from other decentralized trading platforms are additional factors contributing to the overall risk profile of $GNS.