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How Does Gnosis (GNO) Work and What the Tokens are for?

Modified on Mon, 27 Nov, 2023 at 6:18 PM

How Does Gnosis Work?


The Gnosis ecosystem operates through several components:

  1. CoW Protocol: A permissionless DEX that enables ERC-20 token swaps through multi-token batch auctions, protecting against miner extractable value (MEV).
  2. Safe: A customizable multi-signature wallet on Ethereum, providing increased security by requiring a minimum number of approvals for transactions.
  3. Gnosis Chain and Gnosis Beacon Chain: Gnosis Chain is the EVM execution layer using xDAI stablecoin, while Gnosis Beacon Chain secures the network through Proof-of-Stake.
  4. GnosisDAO: The collective steward of the Gnosis ecosystem, holding significant ETH and GNO tokens over an 8-year vesting period.


What GNO Tokens are for?


GNO tokens are a significant part of the Gnosis ecosystem in both security functions and how the network proceeds. The GNO tokens can be used to access the Gnosis smart contract, used as transaction fees, and granted authority for those who hold the tokens to be able to co-manage the system via GnosisDAO.


GNO tokens have a total maximum supply of 3,000,000 GNO meaning that the tokens circulating in the market will not get more than this in the future.

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