GMX <>Token Economic Model

Purpose of proposal:

  1. Improve the income of staked GMX.

  2. Improve the value of GMX.

Proposal content:

  1. the staked of esGMX needs a 180-day unlocking period. to unlock, During the unlocking period, there is no participation in dividends. You can get the opportunity to quickly unlock the esGMX after 15 days by destroying half of the esGMX you hold. During the unlocking period, you can cancel the unlocking at any time without bearing any loss. This will make some gmx holders unwilling to lock their positions, and give the holders who are willing to lock their positions a higher annual income.

  2. 30% of the platform revenue is allocated to gmx users. This part of the revenue is redistributed, and a small amount is used for repurchases and destruction, making GMX a deflationary token.

In the existing model, GMX can exchange with esGMX at any time, and distribute the platform revenue to short-term users who have low demand for platform revenue. However, short-term users are not useful for the long-term construction of the platform, but reduce the interests of long-term bullish holders of the platform. Therefore, changing the long-term pledge will eliminate short-term users, and allow short-term users to maintain transactions in the market. At the same time, it will also improve the income of long-term bullish users of the platform, It also improves the value of GMX.

the focus on creating a deflationary token recently has been a bit much, tbh. Not sure if you are drawing inspiration from Gains Network, but it is important to note that with GNS, the reason it can be long term deflationary is because the minting/burning of GNS tokens makes governance holders the counterparty to traders, whereas on GMX it is the GLP holders who are the trading counterparty. I wont comment on which model is better as I think both serve their purpose, but forcing a token to become deflationary doesn’t actually add value. Taking money away from what would already be distributed to GMX stakers to buy and burn tokens arguably is worse, because it takes money away from those staking GMX and manufactures buy pressure that only those who are not staking can take advantage of.