GMX Revenue Distribution Model Proposal
GMX, an on-chain exchange, is initiating a proposal to alter its revenue distribution model to enhance the long-term value of the GMX token. This new model aims to replace the current buyback and distribution of Ethereum with a buyback and distribution of GMX, offering potential benefits to users and the protocol.
Vote on GMX Revenue Distribution Model
The GMX platform has announced that the proposal for the new revenue distribution model has passed the snapshot vote stage and is now moving to the on-chain voting phase. The GMX DAO community will have until August 4 to approve or reject the proposal, which could bring significant changes to how revenue is distributed within the platform.
Key Features of the “Buyback GMX and Distribute GMX” Model
Under the proposed model, users will have the option to convert distributed GMX to ETH, while network fees will be stored and distributed in GMX. The buyback contract will allocate a portion of fees towards purchasing GMX, with the buyback price determined by GMX’s Chainlink oracle price on Arbitrum and Avalanche. Additionally, the model will include a premium component that gradually increases from 0% to 5% over the course of a week, enhancing the revenue distribution mechanism.
