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

Proposals
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This is correct. Your staking rewards will accrue in the Treasury, and you will (soon) see them reflected in the dApp as your Staking Power - your share of the future rewards pot.

As a result of the staking rewards no longer being constantly distributed to stakers in liquid form, sell pressure and GMX circulating supply decrease.

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GMX Liquidity Restructuring: Phase 1 Complete

Dear community, the liquidity consolidation outlined in the Strategic Plan to Restore Price Discovery has been executed. Here’s a full account of what happened and where things stand.

What was unwound:

A range of Uniswap V3 NFT positions has been unbound. The LP on Trader Joe (Avalanche) has also been fully unwound. To cleanly manage the operational complexity of these movements, many of the liquidity positions listed on Tally were moved to multisigs (the unbinding process isn’t feasible via Tally).

Approximately 310k GMX tokens have been removed from liquidity, while 50k have been readjusted across these positions. The remaining ~275k tokens are all in the bands above $33 and may be further adjusted. The immediate range has been handled first. All required LP movements were completed within the last 24 hours.

The new liquidity structure:

Six new concentrated liquidity positions are now live on Uniswap V4 on Arbitrum, all at the 0.05% (5 basis points) fee tier.

The shape of the updated liquidity:

Downside coverage

  • ~$550K in buy support spanning $1.20 – $6.30
  • Existing DAO NFTs remain in place below $1.20

Upside distribution

  • 50,000 GMX (~0.5% of supply) distributed across $6.30 – $31.00
  • ~10,000 tokens per $5 band. Evenly weighted.
  • Existing DAO pools remain in place above $30

At the moment, liquidity in the $1.20 – $12.00 range is intentionally thinner than before as the structure rebalances. This is expected.

Why 5bps

The 0.05% fee tier wasn’t chosen to maximize fee income; it was chosen to benefit market structure.

At 5bps, market makers on centralized exchanges can quote tight on GMX knowing they have a cost-effective hedge leg onchain. That means tighter spreads, less volatility, and higher arbitrage volume flowing through the protocol. The fee income foregone at this tier is negligible compared to the structural improvement in how GMX trades across venues.

What’s next

The combined liquidity profile — old positions plus the six new V4 deployments — is now set. Buyback activity continues.

This marks the completion of the first phase; next steps in the liquidity restructuring process will continue to be evaluated.

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