GMX Labs Leadership Update

Summary This proposal outlines GMX Labs organizational evolution and lays the foundation for an upcoming DAO vote. GMX Labs has supported the development and operation of the GMX protocol over the years. During this period, the protocol has grown significantly, and the contributor team has evolved from a small, highly autonomous group into a larger, multi-functional organization.

While the early-stage, flat, founder-driven structure worked well initially, it has become increasingly challenging to scale as the team expanded and the competitive landscape of perpetual DEXs matured. To continue supporting the protocol effectively, GMX Labs must evolve toward a clearer, more accountable, and better-aligned organizational model.

Motivation

The GMX Labs team has identified several challenges that emerged as the protocol and contributor organization matured:

Operational Scaling: The Labs team has grown organically, leading to overlapping responsibilities and a lack of clarity in governance and project ownership. The absence of defined functional leadership has slowed execution across core areas.

Execution & Decision-Making: Key decisions often required broad group involvement, resulting in delays. No single leader or structure existed to resolve cross-functional blockers or set unified priorities.

Competitive Pressure: Perpetual DEX competitors have matured operationally and strategically. GMX Labs requires a stronger internal structure to maintain and grow GMX's market position.

Incentive Alignment: Current contributor incentives are not tightly linked to protocol-level outcomes such as fees, adoption, volume, and token performance.

Leadership Evolution: Several founding contributors who have carried major responsibilities since launch have expressed a desire to step back from daily operational leadership and return to technical or advisory-focused roles.

These challenges are typical for maturing contributor organizations and represent an opportunity for GMX Labs to evolve.

Rationale

To address these challenges, it is proposed that GMX Labs moves toward a more defined leadership model. One central element is the creation of a Chief Executive Officer (CEO) role for GMX Labs, filled through a broad, open search process. The goal is to select the most capable leader to guide GMX Labs into its next phase of growth and operational maturity, while improving execution speed, accountability, and alignment with protocol outcomes.

Specifications

1. CEO Role

The CEO will be selected through a comprehensive, open search across all domains and sectors, and will be responsible for:

• Setting strategic direction and outlining medium- and long-term priorities
• Formalizing the leadership team, defining functional areas, and establishing clear organizational structures
• Improving operational efficiency and cross-team clarity
• Strengthening partnerships, integrations, and competitive positioning within DeFi and institutional landscapes
• Driving accountability, resolving blockers, and ensuring alignment toward shared objectives
• Aligning contributor incentives with protocol performance
• Serving as a primary public-facing representative of GMX Labs

2. Interim Leadership Committee

To guide GMX Labs through this transition, an Interim Leadership Committee has been formed.

Members: X, Coin, B, Kal

Mandate:

• Continue implementing the current roadmap, including all critical product, engineering, growth, and operational decisions
• Maintain operational stability during the evolution period
• Lead the CEO search and evaluation process
• Define the organizational structure the new CEO will formalize
• Coordinate transparent communication with the DAO and community

3. Evolution Timeline

April 2026 — CEO Hiring and Onboarding

• Conduct broad candidate search across DeFi, CeFi, TradFi, and technology
• Engage candidates using a DAO-approved hiring mandate
• Complete hiring and onboarding by end of April 2026

June 2026 — Organizational Restructuring

• Finalize and implement a clear updated organizational structure
• Establish functional leadership roles and performance metrics
• Align incentive frameworks with protocol/DAO outcomes
• Provide a public update to the DAO on completed restructuring
• Submit a revised, performance-aligned funding proposal (Contributor Token Allocation)

4. CEO Compensation Framework

This section presents a framework and approval ranges not a finalized employment agreement. The DAO is being asked to approve the structure, philosophy, and bounds of the compensation approach. Final numbers, performance targets, and detailed mechanics will be approved by the DAO once a CEO is selected.

A. Base Compensation

• $150,000 – $200,000 USD per year, paid in stablecoins
• Intentionally modest relative to performance-based compensation

B. Performance-Based Token Incentives

• Base performance pool: up to 40,000 GMX per year
• Exceptional performance pool: up to 10,000 GMX (one-time)
• Earned based on protocol fee growth vs. current baseline of ~$60M annual fees

C. Token Performance Adjustment Earned GMX incentives are adjusted based on GMX 30-day moving average price:

D. Performance Incentives Vesting

• 25% unlocks immediately upon performance targets being met
• Remaining 75% vests linearly over 24 months (monthly)
• Vesting stops upon early departure; unvested tokens are forfeited
• DAO retains the right to revoke unvested tokens in cases of misconduct

E. Time-Vested Retention Component

• Up to 10,000 GMX per year, vesting monthly over 24 months
• Forfeited upon early departure
• Counts toward total annual GMX compensation cap

F. Total Compensation Cap

Total CEO token-based compensation shall not exceed 75,000 GMX in any calendar year, inclusive of all components. This cap is achievable only under strong protocol growth and sustained token performance.

G. Key Takeaways for the DAO:

• No meaningful incentives are earned without material protocol growth
• Token underperformance meaningfully reduces CEO compensation
• Maximum compensation is capped and only achievable under exceptional outcomes
• Token dilution occurs only alongside substantial value creation

5. Annex A: Illustrative Compensation Scenarios (Non-Binding)

Scenario 1: Strong Execution, Moderate Token Recovery

• Annual fees: ~$90M (+50%); Protocol incentive: ~20,000 GMX; GMX 30D MA: ~$30; Multiplier: 1.0×; Final GMX: 20,000; ~$600K value
• Vesting: 5,000 GMX immediately, 15,000 GMX over 24 months

Scenario 2: Exceptional Outcome with Full Alignment

• Annual fees: ~$135M (+125%); Protocol incentive: 50,000 GMX; GMX 30D MA: ~$70; Multiplier: 1.5×; Final GMX: 75,000 (annual cap); ~$5.25M value
• Vesting: 18,750 GMX immediately, 56,250 GMX over 24 months

Scenario 3: Protocol Growth with Weak Token Performance

• Annual fees: ~$120M (+100%); Protocol incentive: 40,000 GMX; GMX 30D MA: ~$14; Multiplier: 0.5×; Final GMX: 20,000; ~$280K value
• Vesting: 5,000 GMX immediately, 15,000 GMX over 24 months

For reference, the approved funding proposal can be found at: https://snapshot.org/#/s:gmx.eth/proposal/0x8495d384a1c39623d22fb239711f73ded6ba108ee7e91f0eb36d1375ca581c25

Conclusion GMX Labs has outgrown its current structure this proposal fixes that by bringing in proper leadership with pay tied directly to protocol performance. This proposal seeks DAO approval to formalize that shift moving from an informal, founder-led structure to an accountable, performance-aligned leadership model with full DAO oversight at every decision. All compensation remains contingent on material protocol growth, with final terms subject to a ratification vote post-hire.