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Table of Contents
Table of Contents
Introduction
Introduction
Hello and good to have you back at Zilliqa Zebra. Are you confused about what gZil is and what you can do with it? Do you want to find out more about the purpose of gZIL? Let Zilliqa Zebra help answer your burning questions about gZIL. You will learn what is what is gZIL and how it came to being. You will also learn about a Decentralized Autonomous Organization or DAO and what purpose does it serve. Find out how to earn and accumulate gZIL, and what else you can do with this token. I will also share with you how you can use a real time calculator to help plan and strategise your staking to get most gZIL. Last but not least I will share with you where else you can buy, sell or trade gZIL.
What is gZIL
What is gZIL
gZIL is essentially a governance token, which empowers long-term token holders and frequent engagers to become a decision-maker in the Zilliqa ecosystem. This can be compared to a DAO- like structure where gZIL holders can vote and make decisions on community and partner projects powered by $ZIL.
$gZIL are ZRC-2 compliant fungible tokens that can be earned alongside $ZIL staking rewards. $gZIL will only be issued when a user withdraws his/her $ZIL stakings rewards from his/her designated SSN operator. For every 1,000 $ZIL earned as staking reward, 1 gZIL will be issued (i.e. 0.001 $gZIL will be issued for every 1 $ZIL staking reward). The rationale behind issuing $gZIL is to capture long-term token holders and give them access to governance tokens that they can later use to make ecosystem-wide decisions (e.g. in a DAO like structure where $gZIL holders can vote and make decisions on community projects).
What is DAO?
What is DAO?
What Is a Decentralized Autonomous Organization (DAO)? One of the major features of digital currencies is that they are decentralized. This means they are not controlled by a single institution like a government or central bank, but instead are divided among a variety of computers, networks, and nodes. The DAO had an objective to provide a new decentralized business model for organizing both commercial and non-profit enterprises.
In the DAO, each action or vote is represented by some form of transaction in the Blockchain. Here the members are represented by the address (in Ethereum, It’s Ethereum address). These addresses can be owned by a human, a robot, an IOT device, or even another DAO. This makes it ideal for a fully automated system to run the full-fledged organization.
Each member is given a token which represents the shares of the DAO; these tokens can also be used to vote in the DAO to take a certain decision. The token is nothing but another kind of contract sunning on top of Blockchain. The more token an address has, the more control he will have on the DAO.
How does DAO work?
How does DAO work?
Each member will have the rights to submit the proposal to take certain decisions. These decisions can be:
Fire the CEO or just Change the CEO
Hire a vendor to get his/her service
Hire a lawyer
Pay certain ethers/USD to someone as a salary or bonus
Issue the share to someone because that person/address is adding more value.
In the DAO, since this is nothing but a democracy which is running in the Blockchain the voting power can be optionally delegated to someone to whom a member trust more. This is in fact just like voting by proxy in the real organization. It can also raise fund through some crowd sourced funding by issuing the tokens/shares to anyone who is paying the money to them. This payment and issuing the shares/token can be done in real time unlike the more than 60 days process in the real organization.
How do you earn gZIL?
How do you earn gZIL?
gZIL will be used for broader ecosystem governance. This will create a DAO-like structure through which gZIL holders can invest in community projects, with the longer-term goal of moving all ecosystem funding to the DAO and empowering the community to be decision-makers of the funded projects. The community holding gZILs will be able to vote on proposals alongside Zilliqa Research on making decisions.
$gZIL will only be issued for 1 year starting from the launch of non-custodial $ZIL staking (14 October 2020), with the objective of creating scarcity and to incentivise users to get involved in the staking programme early. The maximum number of gZIL ever to be issued is limited at 722,700. gZIL will only be issued when a user withdraws their $ZIL stakings rewards from the designated SSN operator. For every 1,000 $ZIL earned as staking reward, 1 gZIL will be issued (i.e. 0.001 gZIL will be issued for every 1 $ZIL staking reward).
What else can you do with gZIL?
What else can you do with gZIL?
Aside from holding gZIL for governance purposes, users can also swap gZIL for other ZRC-2 tokens on our DEX decentralised exchange , ZilSwap, or contribute to its liquidity pool(s) in return for rewards. As of 18 Feb 2021, 1 gZIL is worth about 116 US dollars, so you can tell that it’s pretty valuable.
Planning with a Real-time Calculator
Planning with a Real-time Calculator
In fact, if you are planning to do some serious Zilliqa staking, you might want to check out the real time staking calculator at My-Zilliqa-Wallet. The calculator is a useful took which takes into consideration your potential gZil earnings. It then calculates the estimated annual returns factoring the returns from gZIL. In fact, using this example here, if you invest 100,000 ZIL at 14.2 APY, you should get an estimated annual return including gZIL of 3372 USD with an estimated actual APY of 26% which is really fantastic. With lots of great projects coming up, you are not only capturing the yield from staking but also the price appreciation of Zilliqa itself!
You can also buy and trade gZIL
You can also buy and trade gZIL
You can also buy and trade gZIL at various crypto exchanges. Yes, users can swap gZIL for other ZRC-2 tokens via the decentralised exchange ZilSwap, or contribute to its liquidity pool(s) in return for rewards.
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