Proposal: Seasonal Trading Points with Treasury-Funded GMX Airdrops

Proposals
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Proposal: Seasonal Trading Points with Treasury-Funded GMX Airdrops

Summary
This proposal suggests introducing a Seasonal Trading Points system, where users accumulate points through trading activity over a defined season (6 months or 1 year). At the end of each season, a portion of the GMX treasury would be allocated to buy back GMX on the market, which would then be airdropped to participants based on their share of points.

Motivation

  • Increase user engagement and retention by turning trading into a gamified, recurring event.

  • Provide an additional incentive to trade on GMX without setting unsustainable fixed rewards.

  • Strengthen alignment between traders and the protocol by distributing treasury-funded rewards directly in GMX.

  • Add an element of unpredictability (unknown reward size depending on treasury performance) that creates excitement without overpromising.

Specification

  1. Season Duration:

    • Either 6 months or 1 year per season (to be decided by governance).

  2. Points System:

    • Traders earn Seasonal Trading Points proportionally to their trading activity.

    • Points reset at the start of each new season.

  3. Treasury Allocation:

    • At the end of each season, a percentage of the treasury’s revenues (to be determined, e.g. X%) is allocated.

    • No fixed number is promised; allocation depends on the actual treasury situation.

  4. Buyback and Airdrop:

    • Treasury funds are used to buy GMX from the open market.

    • GMX is then distributed to traders according to their share of points.

  5. Start Date:

    • The program could begin as early as the start of 2026, if approved.

Benefits

  • Creates a recurring event that fosters user loyalty.

  • Generates positive feedback loops between treasury growth, GMX demand, and trader rewards.

  • Flexible design prevents overextension of treasury resources.

  • Gamification can improve brand perception and competitiveness against other platforms like Hyperliquid.

Next Steps

  • Community discussion on season length (6 months vs. 1 year).

  • Governance decision on the percentage of treasury revenues allocated per season.

  • Technical design of the points system and distribution mechanism.

    Lemme know what you think of it. I think gamified trading could be really fun and attract some degens, climbing the ranks. Could add some “elo” every season, as a ranking system displayed on account’s dashboard (bronze-silver-gold-platinum-diamond-master-elite). You gain or lose elo based on your seasonal points. Would be for ego only or add some trading fee discount based on your elo (my personnal take would be the last option).

3 Likes
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Thanks Harry, that’s an interesting angle on incentivising traders.

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These tokens would then be dumped by the traders. Not sure it makes sense. Rather, provide fee reductions with volume + amount of GMX staked.

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Keep in mind that these GMX tokens would first be bought on the market. So even if the traders receiving them were to sell them all, it would, on balance, be neutral.

I think there’s also an argument to be made that traders are motivated more strongly by earning points - with a nebulous value, but the potential promise of a big windfall - than they are motivated by paying lower fees.

Just as a matter of human psychology. Getting something extra is a stronger reinforcement mechanism than having to pay a bit less.

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Yeah and we can see this from various point farmings over the years and even now there are a few known and speculated on.

There is already $3m GMX in the treasury, this is good for that. Where there is no need to buy first.

Distribute and launch points campaign for multichain trade positions? Liquidity isn’t developed cross chain for us anywhere but avax, but if we did an aero pool that would get us an aero position, and feed the ability to make positions from base and run this point system for base chain.

GMX would get whitelisted quick! If the dao runs an LP the emissions can be used to run further incentive campaigns opening perp positions.

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I really like the idea of adding a point system. I have felt for a while, that a sustainable incentive system has been missing from the GMX ecosystem to attract traders and LP’s. Competition is fierce in the DEX space and the protocols that are winning have these sorts of programs. A multiplier could be added if they hold and stake allowing for more trading savings, points, etc. Airdrop happens at the end of each quarter or monthly. Price often creates narrative greater than product releases. So it is highly important to generate marketing and PR with all the great products that will help GMX grow. One defi protocol that has done a good job is KMNO. They been successful at keeping capital on the platform and engaging LP’s with points. Just because you build it, doesn’t mean they will come. Let’s do it and give GMX the best opportunity to survive and thrive.