What percentage of Gelato coins does the development team hold?

The Gelato network's development team holds a significant 20% of the GEL token supply, sparking centralization concerns within the community.

Jan 03, 2025 at 05:56 pm

Key Points

• Gelato is a decentralized network that enables the automation of tasks on the Ethereum blockchain.
• The GEL token is the native token of the Gelato network and is used to pay for task execution and node operation.
• The development team holds a significant percentage of the GEL token supply.
• There are concerns that the team's large token holdings could centralize the governance of the Gelato network.
• The team has stated that they plan to distribute their tokens over time to the Gelato community.

How Much of Gelato Do the Developers Own?

According to the Gelato whitepaper, the development team holds 20% of the total GEL token supply. This is a significant amount of tokens, and some community members have expressed concerns that it could lead to centralization of the Gelato network.

The team has stated that they plan to distribute their tokens over time to the Gelato community. However, they have not announced a specific plan for how they will do this.

Concerns About Centralization

Some community members are concerned that the development team's large token holdings could lead to centralization of the Gelato network. They argue that the team could use their tokens to control the governance of the network and make decisions that are not in the best interests of the community.

The team has stated that they are committed to decentralizing the Gelato network and that they will eventually distribute their tokens to the community. However, it is important to note that the team currently has a lot of power over the network, and it is possible that they could use their tokens to centralize the network if they wanted to.

What Can Be Done?

There are a few things that the Gelato community can do to address the concerns about centralization.

• First, the community can demand that the team release a specific plan for how they will distribute their tokens. This plan should include a timeline and a detailed explanation of how the tokens will be distributed.
• Second, the community can support efforts to decentralize the Gelato network. This could include developing new governance mechanisms, creating new Gelato nodes, and promoting the adoption of Gelato by a wider range of users.
• Finally, the community can stay informed about the latest developments on the Gelato network. This will help the community to hold the team accountable and to ensure that the network remains decentralized.

FAQs

Q: Why does the development team hold such a large percentage of GEL tokens?

A: The development team holds a large percentage of GEL tokens to ensure the long-term stability and development of the Gelato network. The team has stated that they plan to distribute their tokens over time to the Gelato community.

Q: How will the tokens be distributed?

A: The development team has not announced a specific plan for how they will distribute their tokens. However, they have stated that they are committed to decentralizing the Gelato network and that they will eventually distribute their tokens to the community.

Q: What can the community do to address the concerns about centralization?

A: The community can demand that the team release a specific plan for how they will distribute their tokens, support efforts to decentralize the Gelato network, and stay informed about the latest developments on the network.