Value Routing & Earning with $GRAY

How value is routed within the $GRAY ecosystem

Market Buying

A core feature of the Gradient fee model is the market-buying of $GRAY (buybacks) using platform earnings. Gradient aims to use the majority of platform earnings to market-buy the $GRAY token with the intention of rewarding active participants.

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Burn Mechanism

Of the $GRAY tokens bought back, the Gradient protocol aims to allocate approximately 20% to burns, with the intention of reducing the amount of available supply on the market.

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The $GRAY Flywheel

The Gradient protocol recognizes that token stability is essential to long-term sustainability, considering the deep integration of the $GRAY token within the Gradient ecosystem. For this reason, $GRAY's off-market liquidity is incentivized as a priority. The intention here is to allow the token to become more useful within the ecosystem, in turn encouraging greater protocol use. This cycle of mutual sustainability is referred to as a "flywheel".

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Staking $GRAY

Users who stake $GRAY may receive a share of platform earnings. Gradient aims to allocate about 15% of the $GRAY tokens that the protocol buys via its fee model to stakers. These rewards, when distributed, are proportional to each user’s stake. This approach allows Gradient to not rely on inflationary token issuance. Staking on Gradient requires no lock up period.(Note: The staking reward program is subject to change and rewards are not guaranteed; they depend on actual platform fee generation and distribution decisions.)

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Market-Making in $GRAY Gradient Liquidity Pools

Liquidity providers in $GRAY pools can be rewarded for contributing to the token’s stability. The protocol aims to allocate 15% of bought-back tokens from its fee structure to rewarding $GRAY market-makers on the Gradient platform. In addition, liquidity providers receive a share of the standard platform-wide fee distribution and capture the fixed spread on $GRAY trades fulfilled through their liquidity. This combination is aimed at offering real yield derived from trading activity, rather than inflation. Liquidity provision on Gradient requires no lock up period. (These incentive levels are not fixed and can be adjusted by the protocol; they are provided as a bonus to encourage deep liquidity, not as an entitlement.)