Proposal: Treasury Swap to Support GMX Solana Expansion

Proposals
1

Summary

This proposal is based on the discussion on Supporting GMX Solana Expansion via Monthly GT Token Treasury Swap and as next steps now seeks the DAO’s approval for a recurring monthly treasury swap, Under this proposal, the GMX DAO would purchase $110,000 worth of GT tokens from GMX Solana each month, for approximately 12 months, in line with community feedback. This mechanism will provide GMX Solana with the funding needed to support its next phase of growth, while giving the DAO long-term exposure to GT as the Solana expansion continues to mature.

Background

GMX Solana originated from a community forum proposal initiated by Q in May 2024. With strong support from the GMX community and DAO, the initiative received funding for two independent audits and launched successfully on March 12, 2025.

Since its launch, GMX Solana has demonstrated promising early traction:

  • $3.18B in trading volume

  • 2,428 users onboarded

  • $1.36M in protocol fees generated

  • $1.2M in open interest

  • $500K in GMX tokens purchased by the GMX Solana team and secured in the GMX Treasury

Rationale

Why is GMX Solana proposing the Treasury Swap?

GMX Solana marks the first expansion for GMX beyond Arbitrum. What started from a discussion on the governance forum and after a successful launch is now expanding and entering a pivotal growth phase. While early traction has been strong, continued growth and stability require sustained investment across multiple operational areas. All core GMX Solana contributors are working on a voluntary basis and not receiving any payments.
This treasury swap proposal provides a stable and transparent funding mechanism, allowing GMX Solana to build with confidence while also creating value for the GMX DAO by accumulating GT tokens that reflect the Solana ecosystem’s success.

What will GMX Solana do with the funds?

Funds from the treasury swap will be used to strengthen and scale GMX Solana across four core areas

Audit & Risk Management – $51,666/month

  • Zenith Audit: $33,333/month
  • Chaos Labs (Risk Management): $18,333/month
  • Funding for additional audits and continuous risk oversight to maintain protocol security

Infrastructure – $9,000/month

  • SQD + RPC Services: $4,000/month
  • Cloud Servers for Keeper Operations: $5,000/month
  • Maintaining high performance, uptime, and responsiveness of trading systems and backend infrastructure.

Development – $43,166/month

  • Frontend Development (4 Developers): $16,666/month
  • Backend Development (2 Developers): $12,000/month
  • Operations (4 Core Ops Contributors): $12,000/month
  • Design (1 Designer): $2,000/month
  • Enhancing protocol features, partner integrations, and platform mechanics through a dedicated development team.

Note: All current GMX Solana core contributors are working voluntarily and are not receiving any compensation.

Marketing & Growth – $6,666/month

  • Wu Blockchain Marketing: $6,666/month
  • Running targeted campaigns, trading competitions, and GT incentive programs to drive user adoption and grow TVL.

GT Pricing Method

The community has yet to finalize the pricing mechanism for GT tokens used in the swap. Two proposed methods are under consideration:

  1. 50% discount to the average mint price of GT over the past 30 days

  2. Average redemption price of GT over the past 30 days

Conclusion

GMX Solana has demonstrated strong early traction and is now entering a critical phase of growth. To maintain this momentum and scale sustainably, it is essential to secure consistent funding across development, infrastructure, risk management, marketing.

This treasury swap proposal offers a transparent and mutually beneficial solution. GMX Solana receives the capital needed to build and expand, while the GMX DAO gains long-term exposure to the success of the Solana ecosystem through GT tokens.

The community is invited to provide feedback, especially on the GT pricing model. Based on input received, the proposal can be refined and prepared for a formal vote.

4 Likes
2

The mechanics of the GT minting process is unclear. So, after the GT mint for GMX DAO, will the GT minting cycle and minting price advance? If so, the 1. method of pricing is unfair because GMX DAO will be forced to acquire GT at higher and higher prices every time, influenced only by its own ‘purchases’. The 2. method is fairer because GT pricing is based on real market value.

On the other hand, I don’t really understand why we need this ‘treasury swap’ in the first place. There is no chance that the GMX DAO will have the opportunity to ‘sell’ the accumulated GT and regain some of the spent USDC. So maybe we don’t need GT minting/swapping at all? Let’s subsidize the development and operations of GMX-SOLANA from the GMX treasury for one more year and see how it plays out. Without GT minting, we will preserve GT value and avoid completely rugging early investors.

2 Likes
3

Can we get a breakdown of how big our treasury is and how much do we add to it per month so we get the full picture?

1 Like
5

The revenue for the month of July was $700K. The $110K allocated to support the GMX Solana expansion represents 16% of that revenue.
The revenue for the month of August so far is $600K. The same $110K accounts for 18% of the revenue, with the month still ongoing and more revenue expected.

1 Like
6

Thanks for that important context, Saurabh. It’s good to know.

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This is a work-in-progress, and does not yet contain all sources of GMX Treasury funds, but it should be 90% complete:

In short, the Treasury is impressively large.

2 Likes
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The multisig address of GMXSOL Labs:

0x3BF865bf390b3905b0DED7211bD0Db919a1e1145

2 Likes