GNOBNT is a new partnership project between Gnosis and Bancor. Find out everything you need to know about this token changer today.
What is GNOBNT?
GNOBNT is a token changer collaboration launched by Gnosis and Bancor.
Bancor is the protocol that enables built-in price discovery and liquidity for altcoins built on smart contract blockchains. Gnosis is a decentralized platform for prediction markets. Both platforms have their own token. Gnosis has GNO, and Bancor has its Bancor Network Tokens (BNT).
The Israeli-based Bancor recently set a record with its $153 million ICO, while Gnosis had its own record-breaking crypto auction back in April, when it raised $12.5 million. That broke the record for token sales among Dutch companies.
In any case, the two companies are collaborating to create the first ever token changer. That token changer is called GNOBNT. It aims to increase the usability and usefulness of both tokens. It makes it easier to transfer both tokens without the need for a (human) counter-party.
We haven’t seen a collaboration like this in the crypto industry before. However, if this collaboration is successful, Bancor plans to launch similar token changer collaborations with other cryptocurrencies in the future.
How Does the GNOBNT Token Changer Work?
The GNOBNT Token Changer is built on a decentralized liquidity pool containing GNO and BNT. This pool is encapsulated in a smart token. 4,000 GNO and 400,000 BNT were deposited into a Gnosis-Bancor multisig wallet following the token allocation that took place on June 12. The 4,000 GNO and 400,000 BNT account for $1 million of value on each side.
These funds will be progressively deposited into a token changer that will provide a decentralized and automatic way for converting GNO to BNT with no (human) counter-party required. BNT also holds an ETH reserve, which means that two-way ETH-GNO conversions will be possible as well.
The token changer charges a small service fee that will be added to the reserves after each conversion. That fee will benefit all holders (buyers) of the GNOBNT smart token, as it will gradually increase its price over time.
Anyone can purchase these token changers using popular cryptocurrencies like ETH, BNT, or GNO. When you purchase the token changers, it increases its reserve balance and reduces the slippage (i.e. the cost) of each conversion for end users. The holders of the token changer all benefit from the collected fees.
Here’s what Bancor cofounder and Product Architect Eyal Hertzog had to say in a blog post announcing the partnership:
“We love the wisdom of the crowd, especially when there’s real skin in the game to incentive integrity and authenticity. At Bancor, we’re big believers in the potential of prediction markets to harness this wisdom, and we plan to make the Bancor Network the absolute simplest way to engage with these type of markets and other blockchain products that connect people to our collaborative potential.”
Two of the Biggest ICOs Teamed Up to Create Another ICO
The Gnosis and Bancor ICOs both made headlines for their enormous amounts of funding raised. Gnosis broke the record among Dutch companies for its ICO, while Bancor broke the worldwide record with its $153 million ICO. Now, these two ICOs have teamed up to create another ICO for their GNOBNT smart token.
Obviously, this is a unique concept that we haven’t seen before in the crypto industry. However, Hertzog’s blog post mentions that he looks forward “to forging similar partnerships with additional popular networks in the near future.”
Stay tuned for more information about the GNOBNT token changer as the project pushes forward.