The article discusses the upgrade of the Layer 2 network Gate Layer and its GT tokenomics launched by Gate. Gate Layer is built on the OP Stack, is EVM compatible, significantly improves transaction speed, and reduces costs, enhancing blockchain scalability. GT, as the exclusive fuel token, is widely used to support network operation and ecosystem expansion. Combining the three major products, Perp, Gate Fun, and Meme Go, the article analyzes how technological innovation meets the needs of Web3 users, emphasizing its impact and innovation on the cryptocurrency ecosystem, laying the foundation for the progress of the blockchain industry.
Gate Layer 2 Network: Revolutionary Scaling Solution
Gate officially launched its proprietary Layer 2 network - Gate Layer on September 25, 2025. This is a Layer 2 network solution built on OP Stack and fully compatible with EVM. The launch of Gate Layer marks a key step for Gate in implementing the “All in Web3” strategy, aiming to address long-standing pain points in the blockchain space such as high gas fees and slow confirmations.
Gate Layer, as a Layer 2 scaling solution, has significant technical advantages. According to official data, Gate Layer achieves a transaction processing capacity of over 5,700 transactions per second and reduces block generation time to 1 second. This performance metric not only far exceeds that of the Ethereum mainnet but also outperforms most existing Layer 2 network solutions. In terms of transaction costs, Gate Layer also performs excellently, with a cost of about $30 for every million transfers. For a visual comparison, we can look at the table below:
| network | trading throughput | Block generation time | Transaction fee per million transfers |
|---|
| Gate Layer | 5,700+ TPS | 1 second | about 30 dollars |
| Ethereum Mainnet | 15-30 TPS | 12-14 seconds | thousands of dollars |
| Other Layer 2 solutions | 1,000-4,000 TPS | 2-5 seconds | 100-1000 US dollars |
The security design of Gate Layer is also worth noting. It adopts a dual protection mechanism, with settlement security provided by the GateChain mainnet at the bottom layer, while enhancing network stability through the GT staking mechanism. This design retains the security of the mainnet while introducing an additional layer of security through staking economics. In addition, Gate Layer integrates the LayerZero protocol, enabling cross-chain asset transfers with mainstream public chains such as Ethereum, BSC, and Polygon, significantly reducing the threshold for users operating multi-chain assets.
GT tokenomics upgrade: Empowering a new era
With the launch of Gate Layer, the economic model of GT Token has also undergone a significant upgrade. GT has now become the exclusive fuel token for Gate Layer, and all on-chain operations require the consumption of GT to pay fees. This design directly transforms network usage demand into GT’s token demand, creating an intrinsic value capture mechanism. The dual-destruction model of GT has been continued and strengthened in this upgrade. Data shows that as of now, Gate has cumulatively destroyed over 180 million GT, accounting for approximately 60% of the initial supply. This ongoing deflationary mechanism significantly enhances the scarcity of GT, providing long-term support for the token’s value.
The application scenarios of GT have moved beyond mereplatform coinExpand to the entire Gate ecosystem. In addition to traditional functions such as trading fee discounts and participating in new coin mining, GT is now a core element of the Gate Layer network operation. As network activity grows, the demand for GT will correspondingly increase, creating a positive cycle. In addition, the latest v1.20 version upgrade of GateChain supports Blob transactions (EIP-4844), the EVM version has been iterated to Cancun, and it is compatible with 12 EIP protocols. These technical improvements optimize Gas cost calculation, enhance on-chain security, and create richer use cases for GT.
Layer 2 Technology: Reshaping the Cryptocurrency Ecosystem
The emergence of Layer 2 technology is reshaping the entire cryptocurrency ecosystem. As a blockchain scalability solution, Layer 2 networks significantly improve transaction speed and reduce costs by processing transactions outside of the main chain, while maintaining the security and decentralization features of the underlying blockchain. The launch of Gate Layer not only showcases Gate’s strength in technological innovation but also reflects the industry’s trend towards more efficient and lower-cost blockchain infrastructure.
The ecological construction strategy of Gate Layer revolves around three core products: Perp, Gate Fun, and Meme Go. Perp is a perpetual contract with CEX-level liquidity.contractThe trading hub aims to provide a smooth trading experience for the decentralized derivatives market. Gate Fun, as a no-code Token launch incubator, lowers the barriers to Web3 entrepreneurship. Meme Go is a real-time cross-chain meme Token tracker, reflecting Gate’s keen grasp of market trends. These three products accurately cover the full range of Web3 user needs from asset issuance, trading to value creation, showcasing Gate’s ambition in building a complete Web3 value ecosystem.
The launch of Gate Layer marks a new stage in the competition of exchange public chains. As users’ demands for on-chain experiences increase, exchanges need to provide full-stack Web3 services, and high-performance public chains become the key infrastructure supporting this transformation. The difference of Gate Layer from other competitors lies in its more comprehensive ecological layout, which not only focuses on technical performance but also directly participates in application layer construction through core products. This “infrastructure + application ecosystem” dual-driven model may become a new paradigm in the competition of exchange public chains.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
