Gate launches new layer 2 network alongside GT tokenomics update

Gate introduces a high-speed layer 2 network with upgraded GT tokenomics to lower fees, increase efficiency, and expand the token’s on-chain utility. 

Gate has officially launched Gate Layer, a high-performance layer 2 network designed to scale blockchain transactions, while also introducing a new tokenomics model for its native GateToken.

The dual initiative, announced on Sept. 25, reflects Gate’s ambition to expand its role beyond exchange services and build a more comprehensive web3 ecosystem.

Gate Layer targets speed and lower costs

The Gate Layer, which is completely compatible with the Ethereum Virtual Machine, is built on the OP (OP) Stack and secured by GateChain as the settlement layer. As a result, developers can easily migrate current applications, and users can use familiar tools like MetaMask to interact with decentralized apps.

Gate claims that the network can process more than 5,700 transactions per second with block times of 1 second, which is significantly faster than the majority of layer 1 chains. Costs are a top concern as well. Processing 1 million transfers would cost less than $30 on Gate Layer, compared to about $700 on Base and over $1,000 on Solana (SOL).

Cross-chain interoperability is added by integration with LayerZero, allowing assets to be moved directly between Ethereum, Polygon, BNB Chain, and Solana.

GT token gains expanded utility

Alongside the network launch, Gate is expanding the role of its native GT token. GT will serve as the exclusive gas token across Gate Layer, covering all activity from transactions to smart contract deployment and NFT minting.

The token will also continue under a dual deflationary model. This includes quarterly scheduled burns tied to platform performance and automatic on-chain burning of transaction base fees under the EIP-1559 model. To date, more than 180 million GT, over 60% of its original supply, has been permanently removed from circulation.

GateChain upgrade and broader push into web3

Supporting the rollout, GateChain has been upgraded to consensus version v1.20. The upgrade adds blob transaction support through EIP-4844, a Cancun-compatible EVM, and multiple efficiency improvements to developer tools and gas cost calculations.

The layer 2 launch marks the foundation of Gate’s “All in Web3” strategy. The company plans to roll out products that span the full spectrum of user activity, from trading and asset creation to meme token engagement. 

Gate says the goal is to provide a low-cost, high-performance environment that brings decentralized applications closer to the experience of centralized platforms while keeping accessibility at the forefront.