A Strategic Plan to Neutralize CEX Supply Overhang and Restore GMX Price Discovery (Revised)

Proposals
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  1. Liquidity Optimization

Onchain Liquidity Withdrawal: Withdraw ~ 600,000 GMX from treasury-controlled Uniswap and Trader Joe pools. This figure is an estimate based on current data; final amounts will be determined upon execution.

GMX V2 Deepening: Inject additional liquidity into the GMX-USDC pool on GMX V2 to reach a target of 1% of GMX market cap (requiring an additional ~ $400,000 injection based on current market cap).

Total On-chain Target: Maintain a combined liquidity depth (including GMXSOL) of ~ 2% of market cap, ensuring robust execution for GMX V2 while removing inefficient overhead from Uniswap and Trader Joe.

  1. CEX Strategy & Risk Management

Fixed $5 Buy-Wall: A treasury-backed buy-wall for 1,000,000 GMX will be deployed at a fixed price of $5 on major CEXs. This serves as a hard floor to absorb extreme overhang. This price is static and will not be adjusted upward.

One-Week Exposure Window: The buy-wall will remain active for one week only following the proposal’s implementation. This limit is strictly enforced to prevent excessive exposure of Treasury capital to CEX custodial risks.

Operational Security: To eliminate long-term exchange risk, future buybacks will follow a weekly “Deposit-Buy-Withdraw” cycle, ensuring treasury assets are moved to cold storage immediately after execution.

  1. Staking & Reward Restructuring

Distribution Pause: All GMX staking rewards will be diverted to the Treasury and remain locked.

The $90 Unlock: Rewards remain locked until GMX price exceeds $90.

Governance-Led Release: Upon reaching the $90 target, Governance will determine the specific distribution schedule to prevent secondary market shocks.

  1. Loyalty & “Staking Power”

80% Retention Requirement: To remain eligible for accumulated rewards, a user’s staked GMX balance must never drop below 80% of their peak staked amount from the plan’s inception.

Ineligibility: Any breach of the 80% threshold results in a permanent forfeit of accumulated rewards.

  1. Frontend & Transparency

To ensure full transparency, the GMX Staking Dashboard will be updated to display:

Your Staking Power: Your individual contribution based on duration and amount.

Total Staking Power: The aggregate power of all eligible stakers.

Your Share (%): Your current percentage of the total pool.

Total Pending Rewards: The total amount of GMX/fees currently held in the Treasury for future distribution.

Estimated Rewards: The projected amount you will receive once the $90 trigger is met, based on your current share.

3 Likes
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Why are we aiming for this particular $90 level? Why not 200 or 500? It will sound just as delusional as 90, but it will make many supporters of the proposal even happier. Waiting an extra 1-2 years for additional 2-3x return should be approved by many.

I sincerely hope that there are still enough sane holders who understand the absurdity of this proposal and will wake up to vote against it.

4 Likes
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At ninety dollars, it’s so absurd it feels like whales are pumping the price, but they sold before it hit twenty.

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I’ve been thinking about this.

Yes, establishing it this way does eliminate the pressure on sellers, but who would buy a token that doesn’t generate dividends or value?

Are we just going to rely on bots to keep buying all along?

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You can look at the proposal like this, in a simplified form: GMX would change from:

  • using 27% of generated fees for weekly buybacks + payouts to Stakers

to:

  • now using that same 27% of generated fees for weekly buybacks + a long-term loyalty points program rewarding Stakers

The deep value generated by the protocol is still going to the community. But as a reward for long-term loyalty rather than a direct, indiscriminate distribution that comes with selling pressure.

3 Likes
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There are important questions still to be addressed by this proposal. Here’s one example brought up by a community member:

Where can I find more details on the stake requirements to be eligible for payout if passed? I see you must hold at minimum 80% of peak balance at all times.

How does this work if I am accumulating during this period? Let’s say I start with 100 gmx staked. I then over a month, stake an additional 100 gmx. I now have 200 staked, max peak. I started with 50% of this peak. Is there a daily snapshot that tracks this?

1 Like
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The proposal is about to pass. Locking up tokens is similar to a soft supply reduction. GMX still has good potential to follow in Sky’s footsteps and establish an independent pricing trend against CEX. However, without any improvement in fundamentals, I think many of you, like me, are probably planning to sell a portion around the $20 mark.

I understand that setting a target of $90—a nearly unattainable goal—is simply a mechanism to reduce circulation.

We still have a good chance of reaching $20 under this revised proposal (referencing Sky’s valuation: Sky distributes over 100 million in dividends with a market cap exceeding 1 billion; GMX distributes over 20 million, with a market cap exceeding 200 million). $20 is a relatively reasonable price point.

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Yes, now we need to clearly define the wording for the “80%” rule conditions as soon as possible.
One aspect in particular, in addition to those mentioned above, is how esGMX held in staking and esGMX held in vesting are accounted for.

1 Like
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how about re-introducing MP points instead?

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You guys are a bunch of dorks and idiots. Yall have given up and are just trying to do blatent manipulation. You guys are voting for proposals by the same people that killed the system years ago by voting to pay you out in shit and not Eth. Look these whales are going to shake you all out of their positions, they will rebuy the supply, change to eth and live their lives never having to work a day in their lives again. I dont even hold any coins anymore because this community seriously cannot fathom why no rational investor would pay $6 bucks let alone $90 for a shitcoin. GUYS you are voting for the same wolf in sheeps clothing, how are yall so easily willing to blindly follow someone without doing an oune of reasoning yourself? Do yall just AI shit and just pretend to understand what it’s spitting out? I know I am being disrespectful and rude, but I seriously cannot contain myself with just how much brain rot every single one of you have. I just don’t understand how everyone doesn’t see the main bad actors, nore have looked at their voting record and somehow still go “ yes these people that killed the protocol now somehow have the perfect answer we have been looking for” I HOPE these whales scam you all, as brain dead sheep don’t deserve the rewards of a good HUNT.

2 Likes
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TLDR: the whales are dumb and want to commit fraud and blatent market manipulation to push up the price, while locking people out from redemption and tying up liquidity. if you want to know more, please DM so I can share.

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I have lost count how many times I have said I think that we should return to ETH pay outs it will instantly stop the sell pressure and whales who are accumulating will create buy pressure. I would be very interested to see the evidence that cex mechanisms are suppressing the price of GMX I think this data should have been made readily available at the time of the proposal. To me it sounds like a solution for a problem that may not exist! as for stopping pay outs until we reach $90 thats ridiculous, if someone wants to or needs to sell their GMX they will lose out on their staking rewards, will any newcomers buy GMX if they learn when they stake they wont be rewarded until insider manipulation reaches there desired price? I dont know (there maybe some that Im unaware of) any other project that has successfully created an artificial floor price so why are we attempting something other projects have attempted and failed to do

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Looking at the voting results, I realise that I owe an apology to the other holders. It’s inconceivable that such a significant proportion of holders would vote for a bad proposal without understanding the consequences. Perhaps I was too sceptical about it myself. Upon closer examination, this is an extreme version of my previous proposal: instead of reducing rewards partially and shifting them to the near future, the fee distribution is completely waived, postponing it indefinitely or at least for a very long time. If the intention is to manipulate the price (the mention of $90 confirms this), then withdrawing the LP is a logical step too.

GMX let’s GO!

1 Like
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you know, i just saw a dead wallet that not only has 80k of gmx, but also accumulated thousands of GMX tokens from the rewards that are now all “burnt” because the wallet has no txn for the last few years.

there are also several such smaller wallets.
slowly, they are gathering the rewards of $gmx and taking them out of circulation, which is as good as “burnt”….

2 Likes
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even though I don’t know how to feel regarding the consequences of this proposal, I just wanna clarify that I do not feel “accumulated $GMX” as “burnt token”. I expect that 80k staker will one day move its tokens, and many small staker (including me) will take some profits around many milestones including $20 mark.

Burnt token means burnt token that do not exist anymore, and a drop in Total Circulating Supply, nothing else.

1 Like
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The current wording in the app implies that we replaced the previous limit (80% of “max” ever staked, otherwise slashed) with staking power computation (duration × amount staked).

This is a much welcome change, do you confirm it’s the case?

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Rewards will be distributed to stakers once the GMX price exceeds $90, proportional to your staking power (duration Ă— amount staked). However, to remain eligible for these accumulating rewards based on your staking power, your staked GMX balance must still never fall below 80% of your peak staked amount.

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I never withdrew or sold my token rewards, but added them to those already staked. This allowed me to use compound interest. Now I can’t do that, and I’ll only be able to stake my accumulated rewards once the price reaches $90? Is this correct?

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yepp, exactly right.

1 Like
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Pretty sure u can still add staking, come to gmx telegram and ask for answers from team.

Forum might not be the right channel, new UI coming soon so there be btr clarity.