According to current community rumors, GMX might receive more than 20,000,000 ARB tokens. With a reasonable valuation, the price of ARB tokens ranges between $1 and $2. This implies that GMX may potentially gain over $20,000,000 in revenue. In this situation, the allocation of these funds has become a hot topic within the community. As a user who has supported GMX for over a year, I’d like to briefly share my recommendations for discussion.
Personal Recommended Plan:
- GMX (30%): Distributed with staking (Alternative: One-time airdrop or joining the reserve fund)
- GLP (40%): Adopt a plan similar to ESGMX, subsidizing the interest rate for GLP. When GLP returns fall below 15%, provide ARBI subsidies to increase returns to 20%. Since this 40% of ARBI only accounts for 2% of GLP TVL, based on last year’s ESGMX allocation, these ARB tokens may likely sustain subsidies for half a year to a year.
After the launch of synthetic assets (30%): GMX will introduce synthetic assets. As ESGMX distribution may require voting and the community might not agree to issue too many, ARBI becomes particularly important as an extra incentive for LPs during the initial launch. Synthetic assets are crucial for the future development of the GMX protocol.
Basic Plan:
- GMX 30%
- GLP 70%, still recommend following ESGMX’s approach for additional GLP revenue subsidies. The basic plan maintains balance but invests less in the future.
Not recommended plan:
One-time airdrop to GMX: In addition to being unfair to the crucial role of GLP in the protocol, this approach is short-sighted. It may temporarily boost GMX’s price in the short term, but it would generate a detachment effect after distribution, harming the protocol’s long-term health.
GMX protocol has a distinct advantage in profit distribution in the DeFi sector compared to non-dividend projects like UNI and dYdX or projects with higher developer shares such as GNS. I advise GMX ecosystem participants to strike a balance between short-term gains and long-term interests. Once synthetic assets are ready, GMX may have a chance to enter the top 10 cryptocurrency market caps, as it is an on-chain Binance with 100% profit distribution.
