- GMX proposes changing its revenue distribution from ETH to GMX token buybacks.
- On-chain voting for the proposal is open to the GMX DAO community until August 4.
- The new model intends to increase GMX token value while preserving real-yield benefits for users.
GMX, a leading on-chain perpetual and spot exchange, has launched an on-chain vote for a major proposal to overhaul how it distributes revenue.
Announced on July 29, the proposal titled “Buyback GMX and Distribute GMX” aims to strengthen the long-term value of the GMX token by replacing the current “buyback ETH and distribute ETH” system with a “buyback GMX and distribute GMX” model.
Proposal advances from snapshot to on-chain vote
The proposal passed an initial Snapshot vote and is now in the on-chain voting stage. The GMX DAO community has until August 4 to vote on this important change. If approved, the revised model is expected to raise demand for the native GMX token while maintaining tangible yield for platform participants.
The ‘Buyback GMX and Distribute GMX’ proposal, which would change the current revenue distribution model, has passed a Snapshot vote. It now moves on to an on-chain vote by the GMX DAO on Tally:
🔸 https://t.co/2U7HjWvv6r
Delegates, please review the proposal and vote now.
1/3 pic.twitter.com/yzcIKAL4md
— GMX 🫐 (@GMX_IO) July 31, 2024
The community vote will decide whether the platform should implement the new distribution mechanism that ties protocol revenue directly to GMX token purchases and distributions.
How the Buyback and Distribute GMX proposal works
The proposal includes several key components designed to offer flexibility and support token value appreciation. Users would have the option to convert distributed GMX into ETH if they prefer ETH payouts. Revenue earmarked for distribution would be split over seven days, with one-seventh of the allocated fees used each day to buy GMX on the open market.
These daily purchases are planned to execute using GMX’s Chainlink oracle prices on Arbitrum and Avalanche, ensuring that buybacks reflect fair market pricing. In addition, the buyback contract introduces a progressive premium that begins at 0% and scales up to 5% across the seven-day purchase window, creating an added incentive intended to support token value.
GMX already rewards liquidity providers through spreads, funding fees, and liquidations. By shifting revenue distributions to the native token, the proposal seeks to reinforce those incentives and more tightly align platform economics with token-holder interests.
According to DeFiLlama rankings, GMX is currently among notable protocols by revenue and fees, and it competes with other decentralized exchanges such as dYdX and Jupiter Perpetual Exchange. Implementing a GMX-centric distribution model could improve the protocol’s competitive position and attract both users and investors who value token-backed revenue mechanisms.
The GMX community now awaits the on-chain vote outcome, which will determine whether the protocol adopts this new approach to revenue distribution and positions the token as the primary vehicle for returning value to users.