9. GBOND Token & Tokenomics

9.1. GBOND

GBOND is the token specifically designed to manage the transferred credit rights from the Gemforex exchange to Galaxy DAO for former GemForex traders.

GBOND tokens were issued on 16th September 2023 and former Gemforex traders have received GBOND tokens proportional to their funds held within Gemforex. If you are a former GemForex trader you can view and interact with your GBOND tokens on your MyPage.

9.2. GBOND Tokenomics

GBOND is a database token, not a public cryptocurrency token, and is not available for trade, exchange, resale or transfer on public or private markets.

At the time of the credit transfer on 16th September 2023, 1 GBOND was valued at 1 US Dollar, and former Gemforex traders received as many GBOND tokens as their credit rights in Gemforex were worth in US dollars.

Example: a user with a balance of 10,000 USD in their GemForex account at the time of transfer would have received 10,000 GBOND tokens to represent their transferred credit rights from GemForex to Galaxy DAO.

The whole supply of GBOND was issued on 16th September 2023 and was issued in its entirety. No new GBOND will be created or issued.

9.3. Locked and Unlocked States of GBOND

GBOND is issued in a locked format. Locked GBOND accrues automatic interest. GBOND can be unlocked in order to access benefits like lending and staking pools (more information on these points in the headings below).

Locked GBOND can be unlocked once. If unlocked, the holder’s entire holding of GBOND must be unlocked (GBOND cannot be unlocked in part). Once GBOND is unlocked it cannot be relocked.

9.4. Locked GBOND Utility: Automatic interest

GBOND is issued in a locked state and locked GBOND accrues automatic interest. The GBOND holder need not take any action for their GBOND to accrue this interest.

Interest on locked GBOND is accrued on a simple interest basis of 5% per annum. This interest is calculated at the time of GBOND issuance and will not be performed at any other time. Interest on locked GBOND is paid automatically on a monthly basis in Delayed Damages Token (at a monthly rate of 0.416%).

When a holder unlocks their GBOND that GBOND stops accruing automatic interest. Once GBOND is unlocked it cannot be relocked.

9.4.1. Delayed Damages Token (DDT) Tokenomics

All interest on locked GBOND is paid in Delayed Damages Token (DDT). DDT is guaranteed to have a value of 1USD per token. DDT is not a publicly tradable token and cannot be bought, sold, transferred, swapped or exchanged on public or private markets. DDT is only created and issued as an interest payment on locked GBOND, and is issued only to locked GBOND holders.

9.4.2. DDT (Delayed Damages Token) Redemption

After all GBOND is unlocked, DDT redemptions will begin in reverse order starting with the holder who most recently unlocked their GBOND. Users will then be able to exchange their DDT for other tokens (Stablecoin or other cryptocurrency tokens) at a value of 1USD per DDT.

9.5. GBOND Lending (Unlocked GBOND Utility)

When holders unlock their GBOND they gain access to the GBOND lending protocol. In the lending protocol unlocked GBOND holders can borrow against their credit rights. After unlocking their GBOND users can deposit any amount of it into the Lending Protocol and borrow USDC against the GBOND deposited.

USDC is a stablecoin issued by Centre; a joint venture of Circle Internet Financial Limited and Coinbase Global, Inc., and the value of USDC is pegged to the value of the US dollar (1USD/1USDC). Users may deposit as much unlocked GBOND as they wish into the Lending Protocol to borrow against.

9.5.1. Borrowing Limits and Interest Rates in the Lending Protocol

Currently the borrowing rate of USDC within Galaxy DAO is set at 6%.

GBOND is issued at a rate of 1 GBOND/1 USD, which means users can borrow 0.06 USDC for every 1 GBOND they deposit into the Lending Protocol.

The USDC a user borrows through the Protocol will be supplied from Galaxy DAO’s supply of USDC. Galaxy DAO plan to raise the borrowing limit as the overall earnings of the DAO increase. The latest borrowing limit (rate) can be checked on the Boardroom platform.

Users may pay back the borrowed USDC whenever they wish.

9.6. Liquid Staking Pool (Unlocked GBOND Utility)

After unlocking GBOND, holders will have the option to deploy their unlocked GBOND into the liquid staking pool.

GBOND deployed in the staking pool will earn holders rewards in stGBOND, a publicly tradable wrapped token that add liquidity to GBOND and holds utilities in Galaxy DAO and the Trade Planets exchange. Staking rewards will be paid out at a rate of 25% per annum on the amount of unlocked GBOND a holder deploys into the pool, for a maximum staking reward of 100% stGBOND rewarded.

Staking Peroid	Earning Rate	Example
6 months	12.5%	10,000 GBOND＝1,250 stGBOND
1 year	25%	10,000 GBOND＝2,500 stGBOND
2 years	50%	10,000 GBOND＝5,000 stGBOND
4 years	100%	10,000 GBOND＝10,000 stGBOND

Users may choose from four staking periods (detailed in the table above). The corresponding stGBOND reward is credited to the user immediately based on which staking duration they choose.

The user's GBOND is then locked in the staking pool flr that duration. If users wish to redeem their GBOND from the staking pool, they may return the amount of stGBOND earned during staking after the staking period is complete to reclaim their full GBOND amount.