GMX 🫐 (@GMX_IO): Governance Update: A Strategic Plan to Restore Price Discovery

Governance Update: A Strategic Plan to Restore Price Discovery The GMX DAO has approved a plan to address the limited effectiveness of the ongoing buyback activity and the CEX supply overhang that contributes to it. Starting this week, staking rewards will be diverted to the Treasury, and protocol liquidity will be consolidated onto GMX's own infrastructure. What is changing, and what it means for you as a staker, liquidity provider, or trader, is summarized below: The problem this aims to solve The Buy Back & Distribute (BB&D) program has repurchased over 2 million GMX tokens since the end of 2024, roughly equal to the total CEX + DEX circulating supply at the program's inception. The limited effectiveness of this buyback activity points to liquidity and structural CEX dynamics as significant underlying causes. This plan is designed to address those directly. What is changing Liquidity consolidation. Approximately 600,000 GMX will be withdrawn from Treasury-controlled Uniswap and Trader Joe liquidity pools. Those tokens will be redeployed into GMX’s GMX-USDC pool and GMTrade.xyz (the rebranded GMX-Solana), targeting ~2% of market cap in combined on-chain depth. Liquidity for the GMX token primarily belongs on GMX. Staking rewards are locked; no longer distributed directly. Effective today, Wednesday 4 March 2026, all GMX staking rewards will be redirected to the Treasury and held, reducing the circulating supply. This 27% of protocol fees accumulating in the Treasury will still be used for GMX buybacks on the open market. However, rewards will only be distributed to stakers once the GMX price exceeds $90, with distribution proportional to your staking power (duration × amount staked). Governance will determine the exact schedule for releasing rewards once that price point is reached. The goal is to build up a large reward pool, strongly reward long-term stakers’ loyalty, and avoid distributing repurchased tokens into a structurally suppressed market. GMX is a robust, revenue-generating business. This adjustment is one element of a broader set of changes that will strengthen the relationship between the business and the token. Staking Power and the 80% rule. To remain eligible for these accumulated rewards, your staked GMX balance must never fall below 80% of your peak staked amount. A breach of this threshold at any point results in the forfeiture of accumulated rewards and a reset of staking power, with no exceptions. Please monitor your position carefully. User Examples: A user can stake more GMX tokens at any time, in which case the new total becomes the peak staked amount. A user can freely unstake and sell their GMX at any time, but will forfeit their accumulating staking rewards. And a user can freely unstake up to 20% of their peak-staked GMX amount, but no more, without forfeiting future staking rewards. Dashboard updates. The Portfolio dashboard in the GMX dApp currently highlights that staking rewards are accumulating in the Treasury. It will be further updated to display your Staking Power, your share of the total pool, total pending rewards in the Treasury, and your estimated payout at the $90 trigger. GMX aims for full transparency. Exchange buy-wall. A treasury-backed buy-wall of 1,000,000 GMX will be placed at the $5 level on onchain exchanges for one week following implementation. This is a fixed, one-time measure to absorb any extreme overhang and accumulate tokens in the Treasury; it will not be adjusted upward or extended. After that window, future buybacks will follow a weekly Deposit-Buy-Withdraw cycle, keeping Treasury assets off exchanges between executions. What you need to do If you are currently staking GMX, your rewards will, as of today, accumulate in the Treasury on your behalf. To remain eligible, maintain at least 80% of your peak staked balance from this day forward. You do not need to take any other action. If you are not yet staking, the window to establish your balance and begin accumulating Staking Power and Voting Power is open now. > Check your position: gmx.io/earn > View the governance proposal: Snapshot