What is Gnosis?
Gnosis is a protocol for creating open finance applications. Mainly prediction markets and decentralized exchange platforms.
Gnosis have created Gnosis Safe – a simple dApp for using multisig.
What is GNO used for?
Generate OWL tokens.
How does the GNO token work?
Gnosis Protocol enables ring trades; shared liquidity across all orders, rather than a single token pair.
Ring trades are suited for prediction market tokens and tokenized assets.
Gnosis uses two ERC-20 tokens.
- GNO is used for generating OWL tokens via locking GNO.
- Locked tokens cannot be traded or transferred.
- Users can lock tokens in a smart contract for up to 1 year.
- The amount of OWL tokens that are then created depends on the length of the lock period and the total amount of OWL tokens in the market.
- The total amount of OWL to be in circulation is targeted to be 20 times the average monthly usage of OWL for the preceding 3 months.
- The smart contract applies the selected lock duration to a formula that is designed to regulate the total market supply of OWL tokens.
After locking the GNO tokens, 30% of OWL are generated instantly. The remaining 70% are gradually released during the lock period.
- Each OWL token is redeemable for $1 USD worth of fees on the Gnosis platform.
- Listing a token at the Gnosis smart contract level (to be accessed by all platforms) costs 10 OWL.
- The protocol takes only a 0.1% fee on trading volume.
- 50% of the fee is paid to the selected order settlement provider, while the remaining 50% of the fee is burnt.
- It is utility that arises from locked GNO tokens.
- When OWL is used, GNO will generate more OWL per locked token.
- There will likely be an inflationary mechanism built into it where more OWL tokens are created if less than 90% of the fees are paid with OWL.
What is OWL used for?
- Pay for fees on Gnosis platforms. 0.5% on each trade.
- Pay fees to list tokens on the Gnosis protocol
- The total supply of tokens is 10 million.
- The ICO took place on 23 April 2017 with the total amount raised being $12.5M USD.
- The ICO token price was $29.85 USD.