Breakdown of Total Fees (1.36M):
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30% to LPs → 408k
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60% to GMXSOL Treasury → 816k (~540k retained in treasury, remainder used for GT buyback)
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10% to Tech and Ops → 136k
From launch until now (5 months), the protocol has already incurred the following costs:
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Risk management: 110k for two quarters
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Audit: 200k for two quarters
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Servers and other infrastructure: 50k
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Other minor expenses combined
This totals 136k + 300k (already advanced expenses) = 436k, far exceeding the 136k allocation.
So how does the protocol continue to operate without external financing? The answer is: my personal account has been covering these costs upfront.
The role of the Treasury—whether GMX Treasury or GMXSOL Treasury—is first and foremost to ensure the protocol’s survival and development. Only when there is surplus capacity should GMXSOL Treasury, as promised, use it to buy GMX and even entrust it to GMX DAO for custody. But priorities must be clear. Even when compensating expenses, we have never sold GMX; overall, the net position remains buying GMX, which is the maximum limit we can realistically achieve.
Recreating the Situation of Building the GMX Reserve
When GMX fell below 10 USD, I believed it was an excellent opportunity for GMXSOL to build a GMX reserve. At that time, GMXSOL Treasury had about 540k USDC.
Because of extreme volatility, by the time consensus could be reached, the price might have shifted significantly. So I immediately bought 500k USDC worth of GMX.
At that time, my thinking was that there were three possible outcomes:
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Multisig rejection: If the GMXSOL multisig (5/7) disagreed with the GMX reserve plan, then it would simply mean I personally purchased 500k worth of GMX. That would be acceptable to me.
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Price drop: If the value of this 500k GMX dropped to, say, 400k, then the proposal would only reimburse me 400k USDC for the GMX, ensuring that the Treasury would not take a loss.
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Price increase: If the value of this 500k GMX rose and, by the time the proposal was submitted, the price exceeded 11.5, then I would not keep the profit. Effectively, GMXSOL Treasury would spend 500k USDC to obtain 575k worth of GMX.
In short: GMX always acts strictly based on DAO decisions, and I generally follow the same principle. But in special cases like this one, I act first, bear the risks myself, and leave the gains to GMX. Even if the 5/7 multisig had rejected the proposal, I could have accepted that outcome.
Official Announcement at the Time
[2025.04.07_1]
Establishing the GMX Reserve for GMX Solana
We are pleased to announce that now is an opportune time to establish the GMX reserve for GMX Solana, in light of the upcoming bridging of GMX to Solana. To this end, we will be carrying out the following operation:
Background:
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49,783 GMX purchased at an average price of $10.04, totaling 500,000 USDC
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Acquired GMX withdrawn to an Arbitrum address:
Arbiscan link
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All GMX transferred to the GMX Treasury (Tally) for temporary custody:
Tx Link
Tally Treasury
Execution:
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500,000 USDC should be transferred from GMXSOL Treasury to the operation team to complete the buyback via its 5/7 multisig. The proposal for this operation is:
Squads Proposal
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Upon completion of the GMX bridge to Solana, GMX Treasury should transfer the custodied GMX to GMXSOL Treasury. GMXSOL Treasury will then use the entirety of this GMX to purchase GM in the GM:GMX-USDC pool, as previously agreed.
Impacts following Step 1:
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A temporary decrease in GMXSOL Treasury’s asset value from ~$540,000 to ~$40,000 until the GMX bridge is settled
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Daily maximum GT buyback value will be limited to 1,600 USDC until the GMX bridge is completed
We appreciate your continued support and understanding as we take this important step toward strengthening GMX Solana.
This level of transparency is the maximum I can provide. Go ahead and make your decision.