Why are there two tokens and can you explain the difference between GNO and WIZ?
There are two separate tokens on the Gnosis platform to accomplish two separate functions. Broadly, GNO is used to incentivize long term participation in the platform, while WIZ is used to interact with the platform.
Gnosis Wisdom (WIZ) can be used to pay platform fees on the Services layer, subsidize the fees of other participants, provide initial subsidies for markets, or for market trading. WIZ will be pegged to $1 USD worth of fees. In this way, WIZ acts as a coupon for $1 of use within Gnosis.
Gnosis tokens (GNO) are the generator for Wisdom token (WIZ) creation. WIZ can only be created via activating the utility of the Gnosis (GNO) tokens. This is done via a smart contract system. The smart contract works as follows: GNO token holders agree to “lock” their tokens in a smart contract (30–365 days). A multiplier is added for longer lock durations. The smart contract determines the user selected lock duration and applies that duration to a formula that is designed to regulate the supply of WIZ tokens currently in use. Prior to locking their GNO tokens in the smart contract, users will be able to see exactly how much WIZ they will receive as a result of executing the smart contract. Once users execute the contract, 30% of their WIZ will be distributed for immediate use, and the remaining 70% will be distributed proportionally over the locked duration. Once the lock duration expires, the locked GNO ceases to generate WIZ and the GNO becomes freely transferable by the holder. There is no limit (other than duration) for how many times GNO tokens may be used to create WIZ.