GMX Revenue Distribution: Improving Value through On-Chain Voting
GMX, a leading on-chain perpetual and spot exchange, is currently undergoing an on-chain vote to improve its revenue distribution model. The proposal, “Repurchase GMX and Distribute GMX,” aims to enhance the long-term value of the GMX token by changing the revenue distribution method from ETH to GMX token buybacks.
Snapshot Voting Leads to On-Chain Decision Making
This proposal has gone through an initial snapshot vote and is now in the on-chain voting stage. Community members of the GMX DAO have until August 4th to participate in the voting process. If approved, the new model will not only boost the value of the GMX token but also ensure real revenue gains for users.
Understanding GMX Buyback and Distribution
The proposal includes the option for users to convert decentralized GMX to ETH, providing flexibility in reward reception. A portion of the fees will be allocated to daily GMX purchases over a seven-day period, based on GMX’s Chainlink oracle prices. The buyback contract will introduce a premium to the revenue model, gradually increasing the value of GMX tokens over time.
GMX’s current trading model allows liquidity providers to earn fees from various sources, and the proposed changes aim to strengthen these incentives by tying revenue distributions directly to the GMX token.
Currently ranked 45th in terms of revenue and fees by DeFiLlama, GMX faces competition from other decentralized exchanges. The outcome of the on-chain vote could position GMX more favorably in the DeFi space, enhancing its appeal to users and investors.
The GMX community eagerly awaits the results of the vote, as it will significantly impact the platform’s future revenue distribution strategy.
