GMX is the platform's utility and governance token, holding the token unlocks a variety of benefits.
Staked GMX receives three types of rewards:
- Escrowed GMX
- Multiplier Points
- ETH / AVAX Rewards
30% of fees generated from swaps and leverage trading are converted to ETH / AVAX and distributed to staked GMX tokens. If you are staking on Arbitrum you would receive ETH, if you are staking on Avalanche then you would receive AVAX. Note that the fees distributed are based on the number after deducting referral rewards and the network costs of keepers, keeper costs are usually around 1% of the total fees.
The GMX token has a floor price fund in ETH and GLP. It grows in two ways:
- GMX/ETH liquidity is provided and owned by the protocol, the fees from this trading pair will be converted to GLP and deposited into the floor price fund
The floor price fund helps to ensure liquidity in GLP and provide a reliable stream of ETH rewards for all staked GMX.
As the floor price fund grows, it can also be used to buyback and burn GMX if the (Floor Price Fund) / (Total Supply of GMX) is less than the market price, this would lead to a minimum price for GMX in terms of ETH and GLP.
The current floor price fund is held in multiple contracts, these will be gradually consolidated into a single contract:
Contracts holding the Uniswap V3 NFT LP tokens for fees as well as GLP tokens:
The increase in circulating supply will vary depending on the number of tokens that get vested, and the amount of tokens used for marketing / partnerships. The forecasted max supply is 13.25 million GMX tokens.
Minting beyond the max supply of 13.25 million is controlled by a 28 day timelock. This option will only be used if more products are launched and liquidity mining is required, a governance vote will be conducted before any changes.
- 2 million GMX tokens to be managed by the floor price fund.
- 1 million GMX tokens reserved for marketing, partnerships and community developers.
- 250,000 GMX tokens distributed to contributors linearly over 2 years.
GMX tokens can be bridged between Ethereum and Arbitrum, but you should not use this unless absolutely necessary. All features are on Arbitrum so there should be no strong reason to bridge tokens. If you bridge tokens from Arbitrum to Ethereum there will be a 7 day waiting period during which you will not have access to your tokens.