Launch GMX Chain — A Sovereign EVM Blockchain for GMX

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With protocol-chains like Hype rapidly rising, the competitive landscape of DeFi derivatives is shifting fundamentally. These new projects are no longer just dApps on external chains—they control their own blockchain, capturing transaction ordering, revenue, and ecosystem governance, forming a powerful moat.

GMX currently runs on Arbitrum and Avalanche, benefiting from first-mover advantages but facing several structural limitations:
• No control over transaction execution or upgrade cadence
• Liquidity and users fragmented across multiple chains
• Inability to capture on-chain value like gas fees and sequencing revenue
• Limited ecosystem synergy for strategies, insurance, and liquidations

To address this, we propose:

GMX should lead the launch of an independent, EVM-compatible blockchain — GMX Chain — purpose-built for perpetual contracts and GM Pools.

:white_check_mark: Key Goals and Benefits:
• Sovereign control over chain rules, sequencing logic, and upgrade pace
• GLV and gmx stakers share in native gas fees and sequencer rewards
• Native deployment of GM Pools enabling optimal clearing and matching
• Consolidate liquidity, TVL, and ecosystem for stronger network effects
• Upgrade GMX from a “protocol on others’ chains” to a “protocol-as-a-platform”

Additional Advantage: Mitigating Congestion and Gas Spikes

By operating a sovereign native chain, GMX Chain can directly control block capacity, transaction throughput, and fee mechanisms, allowing it to:
• Dynamically scale block size or batch transactions during peak demand to prevent congestion
• Implement flexible, protocol-level gas pricing models that avoid extreme fee spikes seen on shared Layer 1/2 networks
• Prioritize critical protocol transactions (like liquidations and margin calls) to maintain system stability under stress
• Optimize sequencer logic and MEV extraction to reduce overhead and ensure fairer ordering without costly bidding wars

This level of control is impossible on external L2s or shared chains, where GMX must compete with unrelated projects for limited capacity and pay unpredictable fees.

By building its own chain, GMX can deliver more predictable, affordable, and reliable transaction experiences, especially during volatile market conditions when performance and cost efficiency matter most.

:hammer_and_wrench: Technical Approach Highlights:
• Build on OP Stack / Arbitrum Orbit / Polygon CDK frameworks
• Integrate modular data availability layers like Celestia or EigenDA
• Control or operate sequencer with customizable MEV and fair ordering design
• Support cross-chain bridges for seamless LP and user migration from Arbitrum/Avalanche

:hourglass_not_done: Proposed Timeline:
• Phase 1: Community governance discussion and consensus building
• Phase 2: Testnet launch, protocol deployment, GLV incentive rollout
• Phase 3: Mainnet launch, establishing GMX Chain as the primary ecosystem hub

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The time is now to define GMX’s sovereign infrastructure.

Not just deploying contracts on others’ chains — but owning the chain and defining perpetuals on your own platform.

Community feedback and engagement are welcome to refine this vision.

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A good proposal to discuss and work out the details and job scope needed for next few months.

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There are clearly substantial advantages to GMX launching its own chain, which your proposal lays out pretty well.

However, there would be downsides too: it would break composability, require a lot of code to be written from scratch, and involve significant development and audit time.

Question for you @Ikun: what percentage of the current traders, LPs, and protocol integrations do you estimate would migrate to a stand-alone GMX chain..?

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Rather than avoiding the concern, we believe it’s more important to look beyond the raw percentages and focus on the incentive design, user experience, and ecosystem alignment that will drive migration organically.

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:white_check_mark: GMX Chain: A Sovereign Base Layer, Not a Closed System

GMX Chain is not meant to replace Arbitrum or Avalanche. It is designed as:

A native hub for value capture and incentives, while keeping other chains open and supported.

Unlike Hype’s “single-chain lock-in” approach, GMX embraces a “hub-and-spoke” model, offering flexibility while creating strong gravity through incentives and performance.

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:white_check_mark: Why Would Users and Protocols Move?

  1. For Traders:
    • Gas rebates and point incentives for active traders
    • Reduced risk of congestion and gas spikes during peak hours (vs shared L2s)
    • Faster, more reliable execution with prioritized sequencing and stable throughput

  2. For GLV Stakers and LPs:
    • Only GMX Chain stakers of GLV will earn sequencer fees, gas revenue, and native rewards, similar to Hype’s mainnet model but with more flexibility
    • LPs will naturally follow yields and incentives, especially where volume concentrates

  3. For Integrated Protocols:
    • More predictable composability
    • On-chain performance guarantees
    • Eligible for deployment grants and ecosystem incentives

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:white_check_mark: Migration Does Not Need to Be 100% to Succeed:

We estimate:
• 30–50% of active traders
• 20–30% of TVL
• A few key liquidation and strategy protocols

…would be sufficient to establish a self-sustaining, natively-incentivized clearing ecosystem that GMX fully controls.

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:white_check_mark: In Summary:

GMX Chain is not about isolation — it’s about building:

A more controlled, performant, and value-aligned foundation for the GMX ecosystem.

We’re not copying Hype’s “single-chain-only” model. Instead, we are building an evolved version that combines native control with multi-chain accessibility.
Through trading incentives and GLV staking rewards exclusive to the native chain, users will choose to migrate because it’s better — not because they’re forced.

3 Likes