GMX Proposal for Revenue Distribution Transformation
GMX, a leading on-chain perpetual and spot exchange, has put forth a significant proposal to enhance its revenue distribution model. The proposal, titled “Repurchase GMX and Distribute GMX,” aims to shift from the current model of “Repurchase ETH and distribute ETH” to a new model of “Repurchase GMX and distribute GMX.” This change is expected to boost the long-term value of the GMX token.
Entering the On-chain Voting Stage
After passing the initial snapshot vote successfully, the proposal has advanced to the on-chain voting stage. The GMX DAO community now has until August 4th to vote on this crucial change. If approved, the new model will not only increase the value of the GMX token but also ensure real revenue gains for users.
Moreover, the proposal includes provisions for users to convert decentralized GMX to ETH, offering them flexibility in how they receive rewards. The revenue allocation process will involve distributing one-seventh of the fee to daily GMX purchases over a seven-day period, based on GMX’s Chainlink oracle prices on Arbitrum and Avalanche.
Enhancing Revenue Distribution Strategy
Additionally, the buyback contract will introduce a premium to the revenue model, gradually increasing from 0% to 5% over a week. This mechanism is designed to further enhance the value of GMX tokens over time. These proposed changes are expected to strengthen incentives for liquidity providers by linking revenue distributions directly to the platform’s native token.
GMX currently ranks 45th in revenue and fees according to DeFiLlama, facing competition from other decentralized exchanges. Approval of this proposal could position GMX more favorably in the DeFi landscape, increasing its attractiveness to users and investors.
In conclusion, the outcome of the on-chain voting will shape GMX’s future revenue distribution strategy. The community eagerly awaits the results, which will play a pivotal role in determining the platform’s direction moving forward.
