GASP Tokenomics

The GASP token is the thread that ties together our DEX and provides the optimal swap experience for our community. GASP is essential for swaps made on the Gasp Network. As an application specific blockchain, we are able to make swaps completely gasless, meaning users don’t have the burden of gas fees when making swaps in our DEX.

On 04/03/2025 at 12:00 UTC, the GASP token goes live. For the first time since its launch, GASP will have full token trading within the GASP ecosystem and beyond. In this article, we’re deep diving into the GASP utility, tokenomics, distribution, and vesting. 

GASP Supply & Distribution

GASP is hard-capped at 1,000,000,000 (1bn) tokens, with no possibility of minting more. The GASP token is available on the Ethereum network as an ERC20, and natively on the Gasp network, with more networks such as Arbitrum and Base coming soon.

GASP tokens are allocated across four primary groups, designed to ensure a balance between development, community participation, and long-term alignment of contributors and backers. 

This includes:

• Foundation - 10%
• Ecosystem & Community - 40%
• Early Backers - 25%
• Early Contributors - 25%

Our largest token tranche, of 40%, is allocated to ecosystem growth and community incentives. This includes distributions for community members, marketing initiatives, integration and promotion of new chains and L2’s, incentive programs for top traders on the Gasp DEX, community growth, governance, collators, liquidity providers, staking participants, EigenLayer AVS operators, ferries, and more. In total, we have already distributed $3m in GASP to our community, with further airdrops confirmed for early adopters. 

Next we have a 25% allocation to our early contributors, which includes core contributors, the Gasp team, and founders. A further 25% is allocated to our early backers, who made Gasp possible, including our early VC backers, including Polychain, IOSG, Cluster Capital, Signum Capital, IVC, CMS, and other leading VCs; while the final 10% goes to the Gasp Foundation for future development and governance initiatives.

Token Release Schedule

GASP follows a linear vesting schedule. Early backers and early contributors have a 3 month cliff followed by a linear vest from TGE (16/12/2024), while the Foundation has a 30% unlock at month zero, and the Ecosystem & Community tranche has a 25% unlock at month zero, with vesting following linearly each month thereafter. Tokens vest over a total of 36 months ensuring a steady release of GASP tokens with no sudden supply shocks, further absorbed by our algorithmic buyback and burns. 

Gasp Fundamentals

1. Gas-Free Trading with GASP Locks

On the Gasp DEX, users can trade without paying traditional gas fees. Instead, users lock GASP tokens to secure access to a certain number of daily gasless trades. This lockup helps us prevent spam transactions that would take advantage of our gasless DEX. 

It’s like a parking place in front of your apartment. You can buy the park place one-time and then use it everyday for your car to park. If you have a big family and you need two parking places, you buy more places, and it gives you a guarantee you can park more cars every day.

It’s the same with GASP tokens. For example, if you lock 50 GASP you can do 1 trade per day. If you lock 1000 GASP, you can do 20 trades per day. You don’t spend gas, you just lock it.

The total number of trade availability is scarce on the Gasp network, so by buying GASP you are buying yourself a place on the blockchain. The places are limited, so if you buy them more, you could in theory rent it to someone else. 

For high-value trades, Gasp offers a “Premium Threshold” feature. Large trades above a certain USD value can bypass the GASP lock requirement and instead just pay a fixed AMM fee. For example, trades above $10,000 only pay a 0.3% fee, with no GASP lock required.

The exact threshold is governed by community consensus and can evolve over time, and this may be put to a governance vote in the future.

2. Staking for Network Liveness and Data Availability

The Gasp Network depends on collators — essential operators responsible for producing blocks and ensuring Data Availability. To operate, collators must stake GASP, aligning their economic incentives with network reliability.

• Users can delegate GASP to collators, earning a share of staking rewards,
• The more stake a collator holds, the more blocks they can produce, ensuring the liveness of the network,
• This staking mechanism guarantees that Gasp is always online and accessible.

3. Restaking for Finality via EigenLayer

Gasp is deeply integrated with EigenLayer, leveraging Ethereum’s security through restaking, and GASP can be restaked into Gasp’s Autonomous Verifiable Service (AVS) operators.

• AVS operators re-execute Gasp transactions and finalize them on Ethereum L1, ensuring the network’s economic security,
• Restakers earn AVS rewards but also bear slashing risk if operators misbehave,
• This ensures that the economic security of Gasp is directly tied to the value secured on the network, creating a strong disincentive for collusion or attacks.

4. Buybacks and Rewards for GASP Stakers

A portion of all trading fees collected on Gasp are used to algorithmically buy back GASP tokens from the open market. These bought-back tokens are then distributed to GASP stakers, creating a direct link between platform revenue and tokenholder rewards. This runs autonomously, and occurs after every trade fee is collected by the network.

This circular value flow ties the success of the Gasp exchange directly to the value of the GASP token — as more trades occur, more fees are collected, more GASP is bought back, and more rewards flow to stakers.

5. Fair Marketplaces with Guaranteed Transparency

Gasp is designed to ensure fair pricing and transparent rewards for liquidity providers. By using a transparent AMM model and guaranteeing that all trades settle on Ethereum Layer 1, Gasp creates a trustless, verifiable trading environment where LPs and traders alike know they’re getting a fair deal.

Crypto Consolidation, Powered by GASP

GASP isn’t just a token you lock to make trades. It’s also:

• A staking asset securing network liveness and Data Availability,
• A restaking asset leveraging Ethereum’s economic security,
• A governance tool that evolves the network’s parameters over time,

With a fixed supply, deep utility, and built-in revenue flows, GASP is designed to scale with the growth of the Gasp Network, ensuring long-term alignment between users, builders, and tokenholders!