GMX DAO Community Votes on New Revenue Distribution Model
GMX, a leading on-chain perpetual and spot exchange, is currently undergoing a significant change in its revenue distribution model through an on-chain voting process. The community behind GMX DAO is actively participating in this vote to determine the future direction of the platform.
The Proposal: “Repurchase GMX and Distribute GMX”
On July 29, GMX put forward a proposal to switch from the existing “Repurchase ETH and distribute ETH” model to a new “Repurchase GMX and distribute GMX” model. The goal of this proposal is to increase the value of the GMX token over time and ensure real revenue gains for users.
Snapshot Voting and On-Chain Voting
After a successful initial snapshot vote, the proposal has now entered the on-chain voting stage. The GMX DAO community has until August 4th to cast their votes on this crucial change. If approved, the new model will not only enhance the value of the GMX token but also maintain a competitive advantage for users.
Transitioning to a buyback and distribution system, users will have the flexibility to convert decentralized GMX to ETH. Revenue allocation will involve daily GMX purchases based on Chainlink oracle prices to ensure fair market value transactions. The buyback contract will introduce a premium to the revenue model, gradually increasing to 5% over time to boost the value of GMX tokens.
Impact on GMX and the DeFi Sector
As GMX currently ranks 45th in revenue and fees among decentralized exchanges, the outcome of this vote could significantly impact its positioning in the DeFi sector. By aligning revenue distributions with the platform’s native token, GMX aims to enhance its appeal to users and investors.
The GMX community eagerly awaits the results of the voting process, which will pave the way for the platform’s future revenue distribution strategy.
