Question 1

What is GMX?

Accepted Answer

GMX is the utility and governance token of the GMX platform. The GMX platform provides on-chain perpetual trading and liquidity-related services; GMX is used for protocol governance and connects staking with the fee buyback mechanism. It is not equity in a platform company or its treasury assets. The rights and distributions involved in holding or staking the token are subject to the on-chain mechanisms and governance rules enabled by the protocol at the time.

Question 2

How do GMX protocol fees connect to the token mechanism?

Accepted Answer

One core GMX mechanism is that the protocol uses 27% of fees from leveraged trading, liquidations, borrowing, and swaps to buy back GMX on the open market. The buyback does not directly pay that portion of fees to stakers transaction by transaction; it is first converted into repurchased GMX. Therefore, there is a clear but limited link between trading activity and GMX buybacks: when the relevant fees increase, the amount used for buybacks under this rule also changes. This does not mean trading volume or platform use necessarily causes the token price to rise, as the distribution status of repurchased tokens and market conditions also matter.

Question 3

What is the purpose of staking GMX?

Accepted Answer

Staking GMX can provide protocol governance voting rights and eligibility to participate in the fee-buyback distribution mechanism. Staked balances are represented by Staked GMX tokens, and those balances may include staked GMX and esGMX. Distribution shares are determined by staking power rather than only by the amount staked at a particular moment. This weight accumulates continuously with both the amount and duration of staking, so earlier or longer staking affects the relative share.

Question 4

Will staking GMX now provide rewards immediately?

Accepted Answer

No. GMX staking rewards are currently paused: GMX acquired through fee buybacks accumulates in the treasury rather than being immediately distributed to stakers. The distribution condition listed in the official documentation is for GMX to reach $90; only after that condition is met will accumulated repurchased GMX be distributed to stakers. Even if tokens are staked, the actual share received still depends on staking power at that time.

Question 5

How is GMX supply controlled?

Accepted Answer

GMX has a projected maximum supply of 13.25 million tokens. Minting beyond that amount does not occur automatically and requires a governance vote approved by GMX holders. The circulating-supply definition shown in the documentation also does not equal the total amount minted: it is calculated by subtracting tokens held in vesting, bonding, and treasury contracts from minted GMX. Therefore, the “cap,” “minted amount,” and “circulating supply” should be considered separately.

Question 6

How was GMX initially allocated?

Accepted Answer

GMX originated from the merger of the XVIX and Gambit communities, with 6 million GMX allocated to these two community migrations. The remaining initial allocations included: 2 million paired with ETH to provide liquidity, 2 million reserved for esGMX vesting, 2 million for the treasury, 1 million for integration incentives and community developers, and 250,000 allocated linearly to contributors over two years. These categories describe initial uses and allocation paths and should not be directly regarded as amounts that are circulating and sellable at any particular point in time; vesting and treasury holdings affect the circulating-supply definition.

Question 7

What should I note when transferring GMX across chains?

Accepted Answer

GMX documentation lists token addresses for Arbitrum, Avalanche, and Solana; GMX can be bridged between Arbitrum and Avalanche through Stargate. When transferring across chains, first confirm the token version supported by the receiving chain and the rules of the bridge being used. Bridging from Arbitrum back to Ethereum involves a 7-day waiting period, during which the bridged tokens cannot be used. This waiting period is part of the bridging process, not a lock-up period for staking rewards; all GMX functionality is on Arbitrum.

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