Summary:
At present (11-25-2024), Gzil has a market cap of $3.26 million, with an exchange rate of 1 Gzil to 233 Zil. When Gzil was first introduced, the exchange rate was 1 Gzil to 1,000 Zil. However, the Gzil token currently lacks utility, which has been identified as a key area for improvement by all the Gzil token holders based on multi-year market sentiment.
To address this, Gzil token staking will be introduced to enhance its utility. The staking exchange rate will be fixed at 1 Gzil to 1,000 Zil, aligning with its original value. With only 559,970 Gzil in circulation, staking Gzil could increase the staking volume by 10.86% if the entire Gzil supply is staked. This would lead to reduced market supply, greater utility, and a higher likelihood of the exchange rate exceeding 1,000 Zil per Gzil.
Additionally, staking will strengthen engagement and commitment among Gzil token holders, further supporting its value proposition.
Abstract:
The proposed changes aim to make the Gzil token more valuable and useful. By introducing staking, Gzil holders will have a new way to earn rewards, which encourages more people to hold and use the token. This could reduce the number of tokens available in the market, potentially increasing its value. It also strengthens the connection between Gzil and its community, helping everyone feel more invested in its success.
Motivation
The proposed change introduces staking for the Gzil token to enhance its utility and value within the ecosystem. Currently, Gzil has limited use and has experienced a decline in its exchange rate since launch. To address this, the exchange rate of Gzil will be fixed at 1 Gzil to 1,000 Zil, matching its initial valuation. Staking will allow Gzil holders to lock their tokens in exchange for rewards, creating an incentive to hold rather than sell.
With only 559,970 Gzil tokens in circulation, implementing staking has the potential to increase staking volume by up to 10.86% if the total supply is fully staked. This would reduce the number of tokens available in the market, potentially leading to a higher exchange rate and improved token stability.
Additionally, staking fosters greater engagement and commitment among Gzil token holders, as it provides a meaningful reason to actively participate in the ecosystem. By implementing this change, Gzil aims to address its current utility challenges, encourage long-term holding, and restore confidence in its value proposition. This proposal offers a straightforward path to boosting Gzil’s appeal and relevance in the market while aligning with community interests.
This is the problem statement. This is the why of the ZIP. It should clearly explain why the current state of the protocol is inadequate.
The Gzil token currently lacks sufficient utility, which has led to a decline in its value and relevance within the ecosystem. At launch, Gzil had an exchange rate of 1 Gzil to 1,000 Zil, but this has since dropped significantly to 1 Gzil to 233 Zil. This decline reflects limited use cases and diminished market confidence.
With only 559,970 tokens in circulation, the potential for Gzil to drive meaningful engagement or play a significant role in the ecosystem remains largely untapped. The absence of utility not only weakens Gzil’s position in the market but also reduces its attractiveness to both current and potential holders. Without a clear function or incentive to hold Gzil, token holders lack long-term commitment, further exacerbating its declining value.
To remain competitive and relevant, Gzil must address these shortcomings by introducing mechanisms that enhance its utility, encourage holding, and create value for its community. Without such changes, Gzil risks continued stagnation and loss of market interest, undermining its potential to contribute meaningfully to the ecosystem. This ZIP aims to tackle these issues directly, restoring Gzil’s utility and market presence.
Specification:
To enhance Gzil’s utility and align it with the ecosystem’s broader functionality, this ZIP proposes integrating Gzil into the existing staking platform under the same conditions as the Zil token. Gzil holders will be able to stake their tokens, locking them in exchange for rewards, with a fixed exchange rate of 1 Gzil to 1,000 Zil. This integration provides a direct incentive for long-term holding and participation, fostering greater commitment to the token.
Additionally, staked Gzil tokens will be enabled for governance voting, ensuring that token holders who stake their assets can still actively participate in decision-making processes. This dual functionality—staking rewards and governance voting—adds significant utility to Gzil, making it more attractive to both current holders and potential investors.
The implementation will involve technical updates to the staking platform to support staking Gzil under the same terms as Zil, including reward distribution mechanisms. By providing staking rewards and governance participation, this proposal ensures that Gzil holders can fully engage with the ecosystem without sacrificing their ability to influence its future direction. These updates will strengthen Gzil’s role in the ecosystem, address its current utility gap, and increase its appeal and relevance to the community.
- For
- Against