# Enhanced GMX Tokenomics: GM ETH pool Buybacks & Distribution

**URL:** <https://gov.gmx.io/t/enhanced-gmx-tokenomics-gm-eth-pool-buybacks-distribution/4474>\
**Category:** Proposals\
**Created:** [March 29, 2025, 10:51am UTC](https://gov.gmx.io/t/enhanced-gmx-tokenomics-gm-eth-pool-buybacks-distribution/4474 "2025-03-29T10:51:57Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![Eldar](https://avatars.discourse-cdn.com/v4/letter/e/b19c9b/32.png) [@Eldar](https://gov.gmx.io/u/Eldar)\
**Post date:** [March 29, 2025, 10:51am UTC](https://gov.gmx.io/t/enhanced-gmx-tokenomics-gm-eth-pool-buybacks-distribution/4474/1 "2025-03-29T10:51:57Z")

</div>

I think the best tokenomics for [@GMX\_IO](https://x.com/GMX_IO) $GMX is to buy back and distribute [$ETH](https://x.com/search?q=%24ETH&src=cashtag_click) GM pool allocation to [$GMX](https://x.com/search?q=%24GMX&src=cashtag_click) stakers. Add a [$GMX](https://x.com/search?q=%24GMX&src=cashtag_click) auto compound option that would sell the [$ETH](https://x.com/search?q=%24ETH&src=cashtag_click) for more [$GMX](https://x.com/search?q=%24GMX&src=cashtag_click).

- It provides autocompounding yield bearing [$ETH](https://x.com/search?q=%24ETH&src=cashtag_click) exposition to passive stakers.
- At the same time, it increases the liquidity available on [@GMX\_IO](https://x.com/GMX_IO) (even more important as cross chain liquidity is approaching)
- For those choosing to autocompound into [$GMX](https://x.com/search?q=%24GMX&src=cashtag_click), 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](https://x.com/search?q=%24GMX&src=cashtag_click) 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.

---

<div class="post-metadata">

**Author:** ![Jonezee](https://sea2.discourse-cdn.com/flex020/user_avatar/gov.gmx.io/jonezee/32/1238_2.png) [@Jonezee](https://gov.gmx.io/u/Jonezee)\
**Post date:** [March 29, 2025, 9:44pm UTC](https://gov.gmx.io/t/enhanced-gmx-tokenomics-gm-eth-pool-buybacks-distribution/4474/2 "2025-03-29T21:44:24Z")

</div>

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.