GMX Team Long-Term Incentive Program

Summary This proposal seeks final governance approval for the GMX Team Long-Term Incentive (LTI) program introduced and discussed here . The framework is identical to what was posted to the forum, with one operational refinement to the vesting structure (detailed in Section 4 and the “What Changed” appendix).

1. CEO Compensation CEO Q’s base compensation is set to $1 per year, replacing the $150K–$200K + incentive package illustrated in the prior leadership update proposal. All CEO upside is tied to GMX success.

2. Elimination of Liquid GMX Compensation Effective July 1, 2026, the GMX team will no longer receive any freely-sellable GMX as monthly compensation. The 250,000 GMX contributor token allocation approved in the 2026–2027 Funding Proposal terminates at the end of June 2026 (grace period). The operating funds portion of that proposal remains in effect unchanged.

3. Performance-Triggered LTI Reserve

A reserve of 2,000,000 GMX is authorized for the team, released in two tranches:

Tranche 1: 1,000,000 GMX when the 30-day TWAP of GMX exceeds $100 Tranche 2: 1,000,000 GMX when the 30-day TWAP of GMX exceeds $1,000

Price oracle: 30-day TWAP from the Chainlink GMX/USD price feed, to prevent gaming via short-term spikes.

The source of GMX to fulfill these obligations (newly minted, existing treasury reserves, or a dedicated buyback program) is intentionally left to a separate future DAO proposal at the appropriate market conditions. This proposal does not prescribe a funding mechanism.

Crucially, team triggers are set above the corresponding community trigger (the $90 price threshold for restarting the distribution of staking rewards). Community holders capture upside first; the team is rewarded only after the community has been served.

4. Vesting (Marginal Bracket Structure) Each contributor’s allocation at each tranche vests linearly from the trigger date in slices, applied as marginal brackets (analogous to income tax brackets):

Example: A contributor receiving 50,000 GMX vests as: . 10,000 GMX linearly over 1 year . 20,000 GMX linearly over 2 years . 20,000 GMX linearly over 3 years

The monthly vesting rate during the initial year would be (10,000/12) + (20,000/24) + (20,000/36), totaling approximately 2,222 GMX per month. This figure scales down systematically as each allocation slice concludes its respective period. This structure ensures recipients of larger allocations remain vested over longer periods, scaling smoothly with allocation size and avoiding the discontinuities of flat-band vesting.

5. Departure Adjustments

Applied to a contributor’s allocation:

. Terminated for cause / performance: 50% retained, 50% returns to Reserve . Voluntary departure: 80% retained, 20% returns to Reserve . Force majeure (serious illness, death, family emergency, or other circumstances genuinely beyond the individual’s control): 100% retained

The same vesting structure applies to any departure-adjusted allocation. Any GMX returned to Reserve is redistributed pro-rata among remaining recipients at trigger.

6. Administration The CEO and leadership team administer the LTI program including specific tier and multiplier assignments per contributor under an internal compensation policy. Detailed allocation mechanics, sub-tier differentiation, performance criteria, and within-tier distribution are managed by the CEO and leadership team.

At each tranche trigger, GMX Labs will publish a pre-distribution transparency report to the DAO showing the detailed allocation plan who receives what, the applicable vesting schedule per recipient, and the rationale for each allocation before any GMX is distributed.

An annual transparency report will also be provided to the DAO covering allocations made, vesting status, departures, and any material changes to the internal compensation policy.

7. DAO Rights . The DAO retains revocation and clawback rights in the event of misconduct, fraud, or material breach of fiduciary duty. . Any structural changes to tranche sizes, price triggers, or alignment principles require a new DAO proposal.

Implementation Timeline July 1, 2026: New compensation structure (standardized fixed compensation + LTI accrual) takes effect across GMX Labs. All liquid GMX issuance to team members stops.

What Changed Since the Forum Post The framework is unchanged from the forum post except for the vesting structure:

Why the change: Pool-based vesting in the original form would have created edge cases where contributors with smaller allocations could receive higher monthly vest than contributors with larger allocations, because the gap between vesting periods (1 vs 3 vs 5 years) exceeded the natural gap between consecutive allocation amounts. The marginal bracket structure resolves this by ensuring monthly vest scales monotonically with allocation size, while preserving the “longer lock for bigger allocations” principle.

All other elements CEO compensation, elimination of liquid GMX, 2M GMX reserve, price triggers, source of GMX deferred, departure adjustments, administration framework, transparency reporting, DAO rights are unchanged from the forum post.