Arbitrum

Chainlink

Avalanche

GMX, an on-chain perpetual and spot exchange, has announced that a proposal to change the platform’s revenue distribution model has entered the on-chain vote stage.
According to an <a href="https://x.com/GMX_IO/status/1818625708014416171" target="_blank" rel="noopener noreferrer nofollow">announcement</a> on July 31, the new revenue distribution model aims to enhance the long-term value of the GMX (<a href="https://crypto.news/price/gmx/" rel="noopener noreferrer nofollow">GMX</a>) token. Currently, the DEX protocol supports a model that allows for a buyback and distribution of Ethereum (<a href="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>).
<h2 class="wp-block-heading" id="what-s-happening">What’s happening?</h2>
The snapshot vote for the new ‘Buyback GMX and Distribute GMX’ proposal passed, the platform announced. Due to this, the proposal has moved to the next stage – on-chain voting that will see the GMX DAO community have until August 4 to approve or reject it.
If approved, GMX will drop the current revenue distribution model of “buyback ETH and distribute ETH”. Other than boosting the native token’s value, a buyback for GMX instead of ETH will also preserve real-yield advantages for users.
You might also like: <a href="https://crypto.news/chainlink-data-streams-launches-on-avalanche-mainnet-with-gmx-v2/" rel="noopener noreferrer nofollow"> Chainlink Data Streams launches on Avalanche mainnet with GMX V2 </a>
<h2 class="wp-block-heading" id="key-proposals">Key proposals</h2>
The “buyback GMX and distribute GMX” proposal will, however, have an option for users to convert distributed GMX to ETH. It means network fees will be stored in GMX and distributed in the same token, with users able to convert directly.
According to details of the proposal, the buyback contract will allocate a seventh of fees towards the purchase of GMX. This will occur every day for seven days, with the buyback price based on GMX’s Chainlink oracle price on Arbitrum (<a href="https://crypto.news/price/arbitrum/" rel="noopener noreferrer nofollow">ARB</a>) and Avalanche (<a href="https://crypto.news/price/avalanche/" rel="noopener noreferrer nofollow">AVAX</a>).
The buyback contract will also enforce a premium to the revenue model, with this set to gradually increase from 0% to 5% across the week.
GMX’s trading model allows liquidity providers to earn fees from spreads, funding fees, and liquidations. DeFiLlama currently <a href="https://defillama.com/fees" target="_blank" rel="noopener noreferrer nofollow">ranks</a> GMX as the 45th largest chain by revenue and fees. Rival protocols include dYdX and Jupiter Perpetual Exchange.
You might also like: <a href="https://crypto.news/tron-surpasses-ethereum-and-solana-in-revenue-generated-in-the-past-24-hours/" rel="noopener noreferrer nofollow"> Tron surpasses Ethereum, Solana in revenue generated over past 24 hours </a>

GMX proposal to change revenue model proceeds to on-chain vote stage

Innholdsfortegnelse

crypto.news

Andre artikler publisert på 31. juli 2024

Smart Crypto Money Migrates to Kaspa, Lido, and RCO Finance to Boost their Profits Amid Bearish T...

Bright Horizons Ahead: Bitcoin And Mining Industry Poised For Success — Study

Crypto Bluff: Winklevoss Twin Warns Community Amid VP Harris’ Reset Speculations

Crypto Market Update: QCP Sees Ethereum as a Safer Bet Amid Bitcoin’s Stagnation

Bitcoin Investors Ignore Mt. Gox Bitcoin Transfer

How to maintain a balanced portfolio in Crypto?

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!