STON.Fi: Understanding GEMSTON and how it works.
Hey there, DeFi Pioneers; welcome again to my little place on the internet space.
I am Otto11, and today we will be talking more about STON.Fi’s ecosystem and particularly its GEMSTON feature.
We will be talking about…
- DAOs, GEMSTON, and how it works
- The Benefits
- Conclusion
What are DAOs?
A Decentralized Autonomous Organization (DAO) is a revolutionary management structure powered by blockchain technology. DAOs eliminate the need for centralized leadership, allowing communities to govern projects in a transparent, democratic way. This decentralized approach is at the core of Web3, a vision for the next generation of the web, where control is shared among stakeholders instead of being held by a single entity.
At the heart of most DAOs are governance tokens. These tokens grant holders voting power and the ability to participate in key decisions. Typically, the more tokens you hold, the more influence you have.
What is GEMSTON?
GEMSTON is a fungible token on the TON Blockchain, given to users who stake their STON tokens. The key purpose of GEMSTON is to reward users for their active participation in the STON.fi ecosystem, whether through staking or governance. These tokens are transferable and tradeable and have the potential for growing utility, especially in governance, where they give users a say in the future of the platform.
How it works
The number of GEMSTON tokens distributed to a staker is calculated using a specific formula that takes into account various factors
This formula means that the longer the staking period, the greater the rewards a staker can accumulate. Here’s a breakdown of the reward structure based on lock-up duration:
| Lock Period | GEMSTON per STON |
|------------------|----------------------|
| 3 months | 0.125 |
| 6 months | 0.25 |
| 12 months | 0.5 |
| 24 months | 1 |
This formula underscores the principle that longer lock-up durations provide both higher rewards and increased voting power within the ecosystem.
Benefits of GEMSTON
1. Enhanced Rewards: The longer you stake your STON tokens, the more GEMSTON you earn, allowing you to maximize your returns. This structure incentivizes long-term participation, with lock-up periods as long as 24 months offering the highest reward ratio of 1 Gemston per STON.
2. Increased Voting Power: GEMSTON holders gain a stronger voice in the governance of STON.fi. The more tokens you hold, the greater your influence when voting on key protocol decisions, which lets you shape the future direction of the platform.
3. Liquidity and Transferability: As fungible tokens on the TON Blockchain, Gemston can be freely traded or held, giving users flexibility. Whether you want to sell, swap, or accumulate, the choice is yours.
4. Deflationary Pressure: With the DAO constantly working to burn Gemston tokens through various deflationary mechanisms, the token supply is kept in check, which helps maintain value and boosts demand over time.
5. Potential Utility: The DAO is engaging the community to develop innovative use cases for Gemston. As the platform evolves, more ways to use and benefit from holding these tokens will emerge, from staking rewards to additional governance features.
6. Community Empowerment: Gemston tokens embody the spirit of decentralization by giving users real influence. By holding and using Gemston, you’re taking an active role in shaping the protocol’s future, ensuring the community’s voice is heard.
By holding Gemston, you’re not just earning a reward — you’re playing an active role in shaping the future of STON.fi. It’s governance, engagement, and value all rolled into one.
Conclusion
In conclusion, GEMSTON is more than just a reward for staking—it represents your voice and power within the STON.fi ecosystem. By staking STON, you're earning valuable GEMSTON tokens that offer flexibility, voting rights, and a pathway to increased rewards. As the STON.fi DAO evolves, so too will the utility and importance of GEMSTON, ensuring that the community remains at the center of its development. By holding and engaging with GEMSTON, you're not only maximizing your returns but also helping to shape the future of decentralized finance. Keep staking, keep participating, and watch as your role in STON.fi grows.
