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GEM is a nontransferable benefit unit in the local protocol. Settled swaps can earn GEM, and an approved service can burn it with holder consent. GEM has no transferable market pair or guaranteed cash value.
These mechanics run on Anvil. The app’s gacha balance is separate sample state; opening a bag there does not mint or burn onchain GEM.
For a visual introduction, start with Meet GEMs.

Intended eligibility and current limits

GRAPL intends to drop GEM to traders who generate legitimate volume in eligible tokens. Final eligibility and anti-abuse rules are still being defined. The local fee-based implementation does not detect wash trading, Sybil activity or related-wallet patterns; it has no review epochs, multidimensional scoring or clawback. A positive fee and replay protection do not establish legitimate activity.

How a swap earns GEM

SwapRewards accepts a unique trade ID from the authorized router and receives the protocol fee. IDs bind chain, router and nonce and cannot be consumed twice. Rewards are proportional to fees, limited by remaining lifetime issuance. Zero fee yields zero GEM; trading an unrelated external pool does not automatically earn GEM.
10 GRAPL of executed volume pays 0.05 GRAPL at 50 basis points. With 100 GEM per GRAPL of fee, that earns 5 GEM, assuming sufficient lifetime capacity. Half the fee enters the reserve; half goes to treasury.These are test parameters, not approved launch economics. LP fees and gas are separate.
GEM blocks ordinary transfers and ERC-20 approvals. A holder grants a limited allowance through GemReserve.approveBenefit(service, amount). An approved service uses consumeFor to spend the allowance, burn GEM and receive the corresponding GRAPL reference debit. This allowance is separate from a token-trading approval. Users can replace it with zero while the service remains approved. The legitimate burner is the reserve, but an administrator can assign the underlying burner role elsewhere; see authority risks.

Understand the reserve

How funding, supply and the benefit ceiling determine a reference debit.

Understand token bags

Follow payment, inventory reservation and delivery.