GM Labs is establishing a $10M market making fund for the GMX token, funded from the treasury. The fund will use the protocol’s combined Open Interest across all chains as its reference: when GMX circulating market cap is below combined Open Interest, the fund will focus on buybacks; when circulating market cap is at or above combined Open Interest, it will focus on providing liquidity.
Background
Over the past quarter, the team completed a full restructuring. Resources are now deployed and managed centrally, cost control has been tightened, and GMX Solana has been fully integrated into GMX as a single unified protocol. One team, one protocol, one name.
With the consolidation complete, we believe GMX is significantly undervalued relative to the activity the protocol supports. It is time to move to larger-scale buybacks and deeper liquidity.
The Fund
Size: $10M (Phase 1)
Source: GMX treasury
Reference metric: combined Open Interest across all chains
Operating rule:
Circulating market cap < Open Interest → buyback-focused
Circulating market cap ≥ Open Interest → liquidity provision
Roadmap
In parallel, GMX will continue expanding horizontally across the EVM ecosystem and vertically on SVM, pushing the boundaries of what the protocol can do.
Model
Cross-collateral and Cross-margin
Market Groups
Net Open Interest
RFQ
Incentives
GMX Incentive Program
GT Buyback
Expansion
Permissionless Market Listing
Robinhood Integration
New USDG LP Product Line
GT Buyback and Staker Airdrop
The GT buyback will launch shortly. GMX will continue directing Solana-side protocol fees into the GT points flywheel. To further align community interests, GMX stakers will receive a GT airdrop; details will be published in the next proposal.
The MM Fund proposal lack details. And I seriously doubt that we have the $10M required for such a BB campaign. The treasury is depleting fast, so we need to save for the future rather than spending recklessly. At the current level of fee revenue, we won’t have the money to pay developers in just 1-2 years. Isn’t the creation of this MM fund just a publicity stunt?
I don’t disagree with financial prudence, but GMX has been building up a very healthy treasury for years. There’s 30 million in it, while costs have been cut meticulously over the last half-year. The savings have been achieved; the focus is now on growth - where it should be.
Just like to say with regards to the incentives program it was approved in Q1 now it is the end of Q3 despite a redesign of the program, i did not foresee such a delay.
Making me question how long this be implemented. Been a strong supporter of gmx but the execution speed has been really disappointing on all fronts. Volume and fees have dropped significantly. Hope this proposal isnt just another “post” but actually see it happening asap to improve volume.
@gmsolq to my untrained eyes, it seems like GMX is not really concerned abt the slow death of GMX. trading volume declining and seems like no plan
adding on to 0xjunwei, where are the trader incentives in the last 6-8 months
execution speed is not of a startup, don’t be a Nike.
Not only is there a plan, it’s also already being brutally executed on. The incentive program needed to be revamped due to fundamental organisational changes, which unfortunately did cause delays; it’s now on the verge.
I have been tracking GMX funds “for years” myself and I can guarantee that we don’t have spare $30M for spending. After elimination of all uniswap LP positions, GM/GLV holdings, GMX tokens and other illiquid assets and liabilities, “Cash on hands” is only ~$10-12M.
As I said the treasury is almost completely depleted if you include all liabilities. Don’t forget we approved "GMX Labs Funding Proposal (2026-2027)" with an annual floor of $7M, so in total at least $14M for two years. And current 8.8% of total fees only amounts to ~1.5M/year
2. Revenue-Based Operating Funds
Source: Unallocated 10% share of V2 protocol fees (net ~8.8% after Chainlink)
Annual Floor: $7MAnnual Ceiling: $9M
Mechanism:
If revenue < $7M → DAO reserves supplement the shortfall
If revenue $7M–$9M → funded directly from protocol fees
If revenue > $9M → excess retained by DAO treasury
