GMX, the on-chain perpetual and spot exchange, said that an on-chain vote has begun on a plan to change how it distributes revenue.
GMX said in a July 31 announcement that the suggested model is meant to make the GMX token more valuable in the long run. As of this moment, the decentralized exchange (DEX) makes funds by buying back and spreading Ethereum.
GMX Revenue Distribution Overhaul
The plan, called “Buyback GMX and Distribute GMX,” passed the snapshot vote, which means it can now go to the on-chain vote. The GMX DAO community has until August 4 to decide if they like the new plan or not.
If approved, GMX will switch from its current way of sharing income, which is to “buy back ETH and distribute ETH,” to a new plan that focuses on the GMX token. The goal of this change is to both raise the value of the GMX coin and keep the real-yield benefits for users.
The new plan says that network fees will be stored in GMX and then divided in the same token. Users will also be able to change their distributed GMX to ETH. The buyback contract will give out one-seventh of the fees for buying on GMX every day for a week. The return price will be set by the GMX Chainlink oracle price on Arbitrum and Avalanche.
The plan also includes a progressive premium to the revenue model. This premium will rise from 0% to 5% over the course of the week.
Spreads, funding fees, and liquidations are all ways that GMX’s trading model lets liquidity suppliers make money. DeFiLlama says that GMX is currently ranked 45th among chains in terms of income and fees. It is in competition with protocols like dYdX and Jupiter Perpetual Exchange.
