This proposal aims to make minimal changes to the current GMX referral mechanism to create a fairer system that incentivizes more users to promote GMX.
Issues with the Current Model
Lack of Incentive for New Promoters: New promoters are less likely to succeed because new users tend to choose referrers with higher discounts.
Changeable Referral Relationships: Since referral codes are on-chain, users tend to change their codes to use the highest tier codes, undermining the efforts of lower-tier referrers.
Proposed Changes
Uniform Discount for New Users: Ensure all new users receive the same 10% discount, regardless of the referrer’s Tier.
Non-Changeable Referral Relationships: Once users register through a referral link, they should not be able to change their referrer. This ensures that referrers’ efforts are not undermined.
Detailed Mechanism
Discount Rates:
All referred users enjoy a uniform 10% trading fee discount.
The discount is consistent for all users, regardless of the referrer.
Referral Tier Levels:
Higher Tier levels provide better rewards for referrers but do not affect the discount rate for referred users.
Existing Tier Levels (Tier 1, Tier 2, Tier 3):
Tier 1: Users get a 10% discount, referrers earn a 5% rebate.
Tier 2: Users get a 10% discount, referrers earn a 10% rebate.
Tier 3: Users get a 10% discount, referrers earn a 15% rebate (10% in ETH/AVAX, 5% in esGMX).
Conditions to upgrade to Tier 2 or Tier 3:
Tier 2: At least 15 active users using referral codes per week and a combined weekly volume above $5 million.
Tier 3: At least 30 active users using referral codes per week and a combined weekly volume above $25 million.
Non-Changeable Referral Codes:
Once users register through a referral link, the referrer cannot be changed. This ensures fair rewards for referrers.
Benefits of the Proposed Changes
Increased Fairness: All users enjoy the same trading fee discount, preventing monopolies and encouraging more users to promote GMX.
Enhanced Incentives for Promoters: New promoters are more likely to join the referral program in a fair competitive environment.
Sustainable Growth: A fair and inclusive referral mechanism attracts more promoters, leading to organic and sustainable growth for GMX.
The proposed GMX referral mechanism reform aims to create a fairer, more inclusive system that incentivizes more users to promote GMX. By implementing a uniform discount rate for new users, making referral relationships non-changeable, and revising VIP benefits, we can achieve a balanced and effective referral system. Additionally, we have provided a draft example of GMSOL for reference. We hope everyone can actively provide feedback if there are better solutions. We believe these changes will significantly contribute to the growth and success of GMX.
Special thanks to Edson from the GMX Brazil Community for providing the complete suggestions and helping to finalize the proposal.
Thanks for this proposal, I agree with allowing everyone to get the same discount % to battle the competition between referral codes.
However, I do not agree with referral codes being unchangeable, as currently contracts allow people to move their earnings/discounts, eg I can use my 15% rewards incentives towards discount allowing 25% discount for traders and no rewards going towards my account. This way people can gather a lot of referrals, and then change the reward structure either in favor for them, and removing the discount and add it to their rewards which then would be 25% rewards going to the referrer and no discounts being applied anymore.
I think people should be freely be able to change referral codes for whatever reason they want to support other people in the near future.
So I agree with the change of allowing everyone to have the same discount, but I do not agree with not allowing users to change referral codes for the reasons summed up above.
We are in favor of this proposal as it enhances the fairness of GMX referral systems, ensuring that all users can enjoy the same benefits and fostering healthy competition within GMX’s referral market. We anticipate that the proposed changes will attract new promoters who will bring in new users to GMX through their networks.
Additionally, we also support Brawlaphant’s suggestion of using GMX as a rebates, to encourage and enhance user loyalty within the GMX ecosystem.
I would suggest it is time to introduce a system where staking GMX tokens results in advantages for traders and referrers (akin to your GMSOL points mechanics).
Trading fee discounts, tiered based on the number of GMX staked
Increased referral rewards, tiered based on the number of GMX staked
This will strengthen the relationship between using the protocol and wanting to hold GMX tokens, which is important. And it increases the incentives for traders and community members to communicate about the protocol, which compounds this effect. This type of community marketing has been pivotal to GMX in the past.
We are in agreement with implementing a uniform 10% trading fee discount for all new users.
However, we align with @Tano’s perspective that referral codes should remain changeable. Allowing users the flexibility to choose their referrers ensures that the value and rewards accrue to those who genuinely contribute and provide value. This approach promotes fairness and adaptability in the referral system.
We are in favor of the proposal to enhance fairness in the GMX referral system with the following key points:
Uniform 10% Discount: We fully support the implementation of a uniform 10% discount for all referred users. This ensures fairness across the board and helps create a level playing field for both new and established referrers, preventing larger promoters from monopolizing the system.
Changeable Referral Codes: While the current proposal suggests making referral codes non-changeable, we believe users should retain the flexibility to switch referrers over time. Allowing users to change their referral codes provides them with the autonomy to support different referrers as they see fit, fostering more dynamic user engagement.
Linking Referral Benefits to GMX Staking: We advocate for integrating GMX token staking into the referral program. By allowing users to unlock additional benefits or higher rewards through staking GMX, the system can incentivize long-term participation and loyalty to the platform while adding another layer of engagement to the ecosystem.
By making referral codes flexible, ensuring fairness with uniform discounts, and tying the system to GMX staking, this proposal can drive both user retention and referrer participation whilst bringing more utility to $GMX, benefiting the entire ecosystem.
I like this suggestion, but I think it might be better to consider it as part of the fee discount proposal, as long as fairness is ensured within the referral program.
