Suggestions for the use of ARB tokens airdropped to GMX-DAO

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.


Seems like a fair and well considered proposal. We need to review the proposals from the community and take a vote on a ‘final 3’ or other number, for instance? A good idea nonetheless

Very well considered, and I concur.

Definitely reasonable suggestions. Though I personally believe that the rewards for staking GMX and providing GLP liquidity have proven to be above-market already, so don’t really require further incentivization.

Incentivizing providing liquidity to the upcoming isolated token pools of GMX v2, that makes more sense to me. As swiftly bootstrapping sufficient liquidity there will be crucial, simar to GLP when it just launched.

And a few different worthwhile suggestions I haven’t heard discussed much yet, is using the Arb incentives to:

  • fund grants for building additional added-value functionality on top of GMX, and the v2 pools in particular.

  • fund expansionary activities of the ecosystem partner protocols that have most successfully built on GMX/GLP thus far

  • fund additional protocol security checks, audits, bug bounties, hackathons, etc. Because the safety of traders, stakers, and LPs is paramount for an onchain dex.

  • fund additional devs. And maybe give the current ones the holiday they deserve :smirk:

Well thought out idea! Part to compensate current holders of both GMX and GLP, and part to entice more contributors to the pool.

Love the discussion and thoughts shared on this topic. My personal thought would be to use the ARB tokens in some sort of fashion to help incentivize the completion of V2. I’m not sure if this could be allocated for additional developmental goals or perhaps even to help protect the source code.

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I think the highest ROI use of $ARB is to incentivize non BTC/ETH liquidity on v2 post launch


Has there been any update on this?
I like idea of supplanting esGMX with $ARB rewards. Exponential growth.