As a GMX delegate with the GMX Blueberry Club project, we are in favor of this proposal and will vote positively for the following reasons:
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The main objective, as mentioned in the proposal, is to generate continuous buying pressure on the GMX token. This ongoing buyback strategy supports long-term value retention for GMX, which is good for the token’s stability and sustainable growth.
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The positive perception of a protocol buying back and distributing its own tokens is a powerful marketing argument. This could attract new investors and increase interest in the protocol, which is essential for GMX’s continued growth.
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While GMX may be more volatile than ETH, these fluctuations will not significantly impact the annual yield, whether positive or negative. Additionally, the proposal retains the option to convert GMX to ETH, thus offering valuable flexibility to users.
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Currently, GMX buys and distributes ETH, storing weekly fees in ETH before redistributing them. The proposal suggests storing and distributing in GMX instead, without fundamentally changing the nature of the process.
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Many inactive accounts continue to receive rewards in ETH/AVAX without claiming them. Distributing these rewards in GMX to these accounts is more efficient than distributing unclaimed ETH/AVAX.
With many other benefits, we believe that the potential advantages of this buyback system justify its implementation. This proposal is solid and promising, and we optimistically anticipate the benefits it can bring to the entire GMX ecosystem.