Gate.io Launches Layer 2 Network With Upgraded GT Tokenomics

Crypto exchange Gate.io has officially rolled out its Layer 2 network. It is called Gate Layer, while also upgrading the role of its ecosystem token GT (GateToken). The move is designed to improve blockchain scalability, reduce fees and expand the GT token’s use cases within the growing Web3 landscape.

What Is Gate Layer?

Gate Layer is built on the OP Stack, the same technology used by several other leading Layer 2 chains. It is fully compatible with the Ethereum Virtual Machine (EVM). This means developers can easily migrate existing Ethereum applications. Also, users can interact with them without changing tools. Unlike most Layer 2 solutions, Gate Layer uses GateChain as the settlement layer.

It offers an extra layer of security. With block times of just one second and throughput exceeding 5,700 transactions per second. The network is positioned as a high-performance option for developers and everyday users. One of its biggest promises is lower fees. Gate claims that processing one million transactions on the Gate Layer costs less than $30, compared to hundreds. Or even thousands of dollars on competing networks like Base, BSC, or Solana.

Benefits for Users and Developers

The network introduces several features aimed at solving key pain points in Web3:

• Low barriers to entry: Developers can migrate apps quickly. Users don’t need to switch wallets or tools.
• Cross-chain interoperability: With integration through LayerZero, users can move assets seamlessly across Ethereum, BSC, Polygon, and other major blockchains.
• Enhanced security: GateChain and GT staking work together to prevent single points of failure and strengthen consensus.
• Ultra-fast settlement: Transactions finalize almost instantly, creating a smoother user experience for payments, NFT minting, and DeFi activity.

“All in Web3” Strategy

Gate Layer is part of Gate.io’s broader plan called “All in Web3.” Which aims to create a comprehensive on-chain ecosystem. The exchange is focusing on three flagship products as the foundation of this expansion:

1. Perp: A decentralized perpetual futures trading hub that combines high-speed execution with deep liquidity pools. The platform is designed to deliver a smooth trading experience similar to centralized exchanges while keeping full decentralization.
2. Gate Fun: An incubator for small and mid-sized projects. It allows creators to launch tokens without technical expertise. It offers low costs and simple tools. By lowering barriers, Gate hopes to encourage innovation in areas like meme tokens, community projects and experimental DeFi.
3. Meme Go: A monitoring and trading hub for meme tokens across multiple blockchains. With real-time tracking and instant execution. It caters to the fast-moving world of community-driven coins.

GT’s Expanded Role

Alongside the network launch, Gate has announced major changes to GT tokenomics. From now on, GT will act as the exclusive gas token for Gate Layer. It powers every transaction, contract and cross-chain transfer. GT also maintains its dual deflationary model. Which combines scheduled quarterly burns with on-chain burning through the EIP-1559 fee system. This system permanently removes tokens from circulation with every transaction. So far, over 180 million GT about 60% of its original supply, has already been burned. By reducing supply while expanding GT’s utility. Gate aims to strengthen its long-term value within the ecosystem.

GateChain Upgrade

To support the launch, GateChain has also been upgraded to version v1.20. This makes it a stronger settlement layer. The improvements include support for EIP-4844 blob transactions. An update to the Cancun EVM version and compatibility with multiple Ethereum Improvement Proposals. These upgrades enhance efficiency, reduce gas costs and improve security.

Looking Ahead

The launch of Gate Layer and the GT upgrade signal a new stage for Gate.io. The exchange is positioning itself not just as a trading platform but as a full Web3 ecosystem builder. By offering lower fees, faster transactions and broader GT utility. Gate hopes to attract developers, creators and retail users looking for efficient blockchain solutions.

If the network delivers on its promises of speed, security and cost-efficiency. Gate Layer could become a strong competitor in the crowded Layer 2 market. For GT holders, the new utility and ongoing deflationary model create a stronger link between token value and ecosystem growth. In short, Gate is betting big on its future in Web3. It’s using Gate Layer and GT to make that vision a reality.