According to Odaily, Gearbox, a decentralized leverage protocol, has announced that its GEAR tokens have almost reached a state of full circulation. The freely circulating supply has reached its maximum, as 40% of the token shares are held within the DAO and do not belong to any individual. These shares will be used at a rate of 3% per year for various donation and funding programs. This rate is even lower than the general staking inflation rate of Layer1.
The announcement indicates a significant milestone for Gearbox, as reaching full circulation implies that the maximum number of tokens that can be in circulation are now in the market. This could potentially lead to increased stability in the token's price, as the supply is no longer subject to sudden increases.
The fact that a large portion of the tokens are held within the DAO also suggests a commitment to decentralization and community governance. The 3% annual rate at which these tokens will be used for donations and funding programs is lower than the typical inflation rate seen in other Layer1 protocols, indicating a conservative approach to token management.