Gate Crypto Exchange Announces New Layer 2 Network and Incineration Process

There has been an important development for cryptocurrency traders. Gate has officially announced its new Layer 2 network, Gate Layer. This network will be built on the Ethereum compatible OP Stack infrastructure, enabling the platform to achieve its scalability goals.

Gate Layer aims to provide a faster and cost-effective transaction experience by utilizing GateChain as the settlement layer. Another notable update is the significant changes to the GT token. Gate has made GT the network's only transaction fee token and has made a significant transformation by revising its tokenomics.

Gate's statement emphasizes that the GT token is positioned not only as a gas fee, but also as a deflationary asset. The company will continue to reduce the supply of GT tokens through on-chain burn processes, along with programmatic buyback and burn mechanisms. So far, approximately 60.18% of the total supply has been burned and more than 180 million GT has been withdrawn from the market. This burn pattern plays an important role in preserving the value of GT and increasing the sustainability of the network.

Gate describes the new Gate Layer not only as a scaling solution, but also as the backbone of its "All in Web3" strategy. In this context, the platform plans to integrate innovations such as Perp (a perpetual futures hub), Gate Fun (a no-code token launch platform), and Meme Go (a cross-chain meme coin tracking tool) into its ecosystem.

As Layer 2 competition among cryptocurrency exchanges gains momentum, Gate's move is all the more important as major exchanges such as Coinbase's Base network develop their own Layer 2 solutions. By moving user activity on-chain and deepening liquidity, exchanges are striving to position themselves as full Web3 providers, not just trading platforms.