- GMX, an on-chain perpetual and spot exchange, has declared that it has reached the on-chain vote stage regarding a proposal to modify the platform’s revenue distribution scheme.
The new income sharing mechanism is intended to increase the long-term value of the GMX gmx -6.44% GMX token, according to an announcement made on July 31. As of right now, the DEX protocol provides a paradigm that permits Ethereum Ethereum eth -4.46% Ethereum to be distributed and bought back.
What is taking place?
The platform declared that the new “Buyback GMX and Distribute GMX” proposition has passed the snapshot vote. As a result, the proposal has advanced to the on-chain vote phase, where the GMX DAO community will have until August 4 to either accept or reject it.
If approved, GMX will discontinue its ETH distribution and give up on its income distribution buyback strategy. In addition to increasing the value of the native token, a buyback of GMX rather than ETH will protect user real-yield benefits.
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However, users will have the option to convert allocated GMX to ETH as part of the buyback and distribute GMX plan. This implies that network fees will be dispersed in the same token and held in GMX, with direct conversion possible for users.
A sixth of the costs under the buyback contract will go toward buying GMX, per the proposal’s provisions. This will occur every day for seven days, with GMX’s Chainlink oracle pricing on Arbitrum setting the buyback price. Arbitrum arb -5.46% Avalanche and Arbitrum The avalanche avax is -3.91%.
Additionally, a premium to the revenue model will be enforced by the buyback contract; this premium will rise progressively over the course of the week, from 0% to 5%.
Liquidity providers can profit from spreads, funding fees, and liquidations thanks to GMX’s trading strategy. According to income and fees, DeFiLlama presently lists GMX as the 45th largest chain. Jupiter Perpetual Exchange and dYdX are examples of competing protocols.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
