Enhanced GMX Tokenomics: GM ETH pool Buybacks & Distribution

Proposals
1

I think the best tokenomics for @GMX_IO $GMX is to buy back and distribute $ETH GM pool allocation to $GMX stakers. Add a $GMX auto compound option that would sell the $ETH for more $GMX.

  • It provides autocompounding yield bearing $ETH exposition to passive stakers.
  • At the same time, it increases the liquidity available on @GMX_IO (even more important as cross chain liquidity is approaching)
  • For those choosing to autocompound into $GMX, it acts as the current buyback.
  • It is a way to invest the revenue in the growth of the protocol while still giving rewards to GMX stakers.
  • It is Ethereum-aligned and helps boost the price of the main asset on which all of DeFi depends.
  • It goes back to the real yield narrative, given $GMX an exogenous form of yield. Seems like the best of all worlds. Hopefully, the GMX community will consider this.

This is a simple suggestion from a concerned GMX investor to gauge the interest and opinion of the GMX community on this. The exact implementation plan would need to be further defined and detailed.

1 Like
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There are definitely some advantages to distributing a yield-earning liquidity token. Though I’m sceptical there is much appetite for changes to the fee distribution so soon after shifting to GMX rewards.