Marketing Funds to Promote GMX and to Test Trader Incentive Scheme 2.0

Funds Request for Multiple Upcoming Marketing and Incentive Scheme Activities

Summary

This proposal outlines a request for marketing funds to be made available to a GMX-controlled Multi-Sig to facilitate a trader-focused marketing program aimed at rewarding GMX users and increasing trading volume across GMX deployments on Arbitrum, Avalanche, BNB Chain, Ethereum Mainnet, Base, and potentially MegaETH, while testing permanent incentive models. Based on community feedback and the upcoming MegaETH chain launch, the allocated budget has been increased from $2,150,000 to $3,150,000 to support expanded scope and execution.

A total allocation of $3,150,000 is requested for marketing and incentives, to be used across multiple activities including, but not limited to, MegaETH bootstrapping, KOL campaigns, incentive program testing and modeling, and general marketing initiative.

Background

GMX currently generates between $4 and $7B in monthly trading volume across all chains. To remain competitive with platforms that offer aggressive trader incentive programs, the platform needs effective mechanisms that reward active trading.

This proposal looks to secure funds for general marketing, bootstrapping, and to test a direct rebate system, in which trading fees flow back to active traders in proportion to their engagement with the platform.

Key goals are:

  • To test whether fee rebates can sustainably drive volume growth while improving GMX’s competitive positioning.

  • To reward user loyalty, boost the utility of the GMX token, and strengthen the relationship between GMX protocol activity and the token.

  • Drive mindshare and user activity to key areas within the platform.

Below is an overview of what the requested funds would achieve:

Incentive Scheme Test
Example of what a future scheme might entail: traders will earn points and points multipliers through the following engagement pathways. All multipliers stack additively, with a hard cap.

Budget Allocation
Fee rebates can be used to offset up to a set percent of the open and close fees of future trades, which are rebated in GMX tokens. Points will be awarded to historical traders based on criteria to be set in a future post.

$2,000,000 USDC will purchase GMX from the open market at a rate matching the redemption of previous weeks’ points.

Example of structure

Staking
Staking GMX will offer one of the largest multipliers for gaining points on your perp trading volume.

Volume
Volume is the second largest points multiplier, with historical activity and the previous epoch’s’ average volume taken into account

Activity-Based Multipliers (Per-Trade)
Below is a list of currently planned platform activities that may give additional multipliers to points. There may be more added or removed depending on the activities and protocol elements GMX wishes to emphasize and incentivize.

  • Multichain trading: trades executed from Base, BNB Chain, Ethereum Mainnet, MegaETH, etc

  • Featured/New markets: trades executed on designated markets

  • Balancing trades: trades that improve the Open Interest balance

Hard Cap: There is an undisclosed cap on multiplier stacking to prevent abuse.

Distribution Mechanics
Epoch Structure: 1 week (Wednesday 00:00 UTC - Tuesday 23:59 UTC)
Minimum Stake Duration: 7 days for multipliers to apply
Claims: Weekly distributions, every Wednesday 00:01 UTC
Cycle: Points are awarded for 1 week’s trading activity, and points are converted to fee rebates through the following week’s trading activity.
Rebate Form: Points*, GMX

Phases of Implementation
Phase 1: Community discussion and feedback
Phase 2: Snapshot vote
Phase 3: Dev / UX update, Marketing Promotion
Phase 4: Trading volume is recorded, and rebates are calculated offline and then manually sent to the distribution contact.

Success Metrics
The campaign will be evaluated on a set of criteria outlined in a future gov post specific to exact details of the program.

MegaETH Bootstrapping and Campaigns

Funds would be earmarked for use to draw liquidity and traders to the MegaETH deployment. With the use going towards but not limited to: incentivization of providing liquidity, trading, and other campaigns. The use of these funds would fall to the discretion of Contributors.

Budget
$500,000 for use in and around incentivizing and bootstrapping activity on MegaETH

Duration
Funds are for immediate use within the MegaETH ecosystem and will cover Q1 of 2026 with possible use in Q2 if the duration of activities spill over.

General Marketing activities

Funds would be earmarked for the use of marketing and promoting GMX across all of its deployments and through avenues to be evaluated and measured by Core Contributors.

Budget
$500,000 for use in and around the ecosystem to promote all aspects of GMX

Duration
Funds are for immediate use and will cover Q1 of 2026 with possible use in Q2 if the duration of marketing programs spill over.

KOL and Mindshare

Funds would be earmarked for use to draw attention to specific campaigns and the incentive test scheme. The activities would be in and around growing educational threads, social mindshare, and general targeting promotional activities deemed fit after extensive evaluation by Core Contributors

Budget:
$150,000 for use in and around the ecosystem to promote all aspects of GMX

Duration:
Funds are for immediate use and will cover Q1 of 2026 with possible use in Q2 if the duration of marketing programs spill over.

Conclusion

This proposal requests funds be made available to a Multi-Sig for rapid marketing activities in the Q1–Q2 interim period 2026 and introduces a competitive trader incentive program that directly rewards active GMX staking through rebates on future trading fees. It also encompasses liquidity incentives, new chain expansion initiatives, and the flexibility to support additional future incentive programs as needed. All unutilized funds will be returned to the DAO treasury, with contributors providing monthly reports to keep the DAO informed on incentive distribution and spending.

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Reserved for change log

The previous post had great discussion around the incentive scheme model but not on the funds for marketing or reporting / expectations of the marketing efforts.

This post has removed a lot of details about the exact operations of the incentive program to be shared in the comments by the core designer of the program.

Major changes:
-Amount requested increased
*Budget for general marketing activies
*funds for MegaETH LP Bootstrapping
-Change of incentive rollout to phases and not a hard week by week
-Overall heavier hand on a marketing push across all fronts.
-General expectations for marketing options to be evaluated then marketing attempts measured

Link to previous post: https://gov.gmx.io/t/modified-marketing-funds-to-promote-gmx-and-to-test-trader-incentive-scheme/4986/47

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Generally dont want to set hard numbers on it but would think that monthly OI recovering to above pre-10/10 levels be a success of course higher is better.

Additionally gmx bought weekly might allow an individual to reverse the points formula based on their volume + stake and rebates following week not sure if early twap to frontrun bots be better too ? Any excess just return it to treasury.

Overall all numbers are good.

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These systems are foundational to any trading platform and should have been built long ago. They must be treated as top priority. We need to start building them immediately and allocate funding without delay. Tbh, I am quite confused why things like Botainx and MegaETH are being prioritized ahead of marketing and incentive programs, which seem more critical for driving user growth and retention at this stage.

For parameter initialization, we do not need to over-optimize at this stage. Launch with reasonable defaults, operate the systems, observe real behavior, and refine afterward.

Execution matters more than theoretical perfection. Speed and iteration will create real progress.

They were.

In any case I’m surprised that “version 2” of the MP resurrection plan is just version 1 with a higher budget. Rob & co were getting a lot of constructive feedback from the community that seems to have been hand-waved off.

I agree with you, I don’t understand why all the feedback were erased !

https://gov.gmx.io/t/modified-marketing-funds-to-promote-gmx-and-to-test-trader-incentive-scheme/4986/47

no feedback was erased.

It’s not, details of the incentive program would be a further post or comment on this post.

This second post pushed forward the immediate marketing needs and gave room and space for the incentive program to develop alongside the provided feedback. This post has broken the marketing request into more compartments and allowed for more immediate use of the funds across the platform.

Botanix is not mentioned in the above post. But general marketing allotment would be used anywhere, and could include Botanix. Its not a core focus of this post.

Yes these activities are needed, and the core reason for the proposal.

Evaluation of where marketing activities has been underway for a good period, and another reason why it made sense to request funds. Contributors leading those efforts are ready to market.

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Thank you for your clarification.