Thread by @CryptoEdgar_

1/ Are #GMT tokens on #BSC really burned?

Even though on chain transactions on #BSC show the daily #GMT burns, the total #GMT supply, after burns, might in fact not decrease.

Please allow me to explain 👇

2/ Binance Bridge

@binance has their own bridge to bring tokens from other chains to #BSC

They do so by holding collateral in a 1:1 ratio in certain wallets (102% ratio atm)

Today 1.3M #GMT was minted on #BSC and an equivalent 1.3M #GMT were sent & held in a wallet on #Solana.

3/ Why?

This is done to ensure that tokens can move both ways.

Theoretically: When #StepN decides to bring liquidity back from #BSC to #Solana, they could burn the tokens on #BSC and release an equivalent amount of #GMT from their wallet back into #Solana.

4/ So what's the issue?

We (as a community) burn #GMT on #BSC as the @flipsidecrypto dashboard clearly shows (65M GMT in total)

BUT

What happened in the collateral wallet is:
59M GMT were sent back to Binance (and thus back into circulation?) whilst they should've been burned?

5/ Extra clarification

So in fact what happened is:
The operation of actions is exactly the same as if BSC #GMT were bridged back to #Solana

1. Burn tokens on #BSC
2. Release equivalent amount of tokens on #Solana
3. No burns have happened and supply is exactly the same

6/ Note:

Once the tokens are sent to @binance we somewhat lose track.

Perhaps @Stepnofficial can provide us with extra transparency and provide links to the equivalent #Solana on-chain burns?

Currently, for all 114.3M minted #GMT only 50.3M are accounted for as collateral.

7/ Conclusion:

To rectify this whole situation, we'd need to see a 64M (114.3M - 50.3M) #GMT burn on #Solana.

Either this burn already happened and the tx can be linked or it still needs to happen.

Also, each burn tx on #BSC should have an equivalent burn tx on #Solana.

8/ If you think that there are inaccuracies in this thread, feel free to comment or reach out.

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