Revised Fee Structure and Growth Incentives for GMX Deployment on Botanix

Introduction

With the community’s approval to deploy GMX on Botanix, the next step is to ensure a successful and impactful launch on the network. This proposal advocates for a revised fee structure: 50% to LPs, 25% to GMX stakers, and a 25% allocation to the Treasury. Half of this Treasury allocation (12.5% of total fees) will be actively deployed for targeted Marketing and Growth Incentives on Botanix. This strategy is designed to accelerate adoption, deepen liquidity, and establish a framework for future GMX multichain expansions.

Motivation

As GMX executes its multichain strategy, starting with the native deployment on Botanix, a “one-size-fits-all” approach to fee distribution is insufficient for seeding new deployments and capturing market share. Newer ecosystems like Botanix present unique challenges and opportunities that require a more agile and aggressive growth strategy as will entering existing ecosystems where we have historically not been present. The current fee structure, while excellent for mature deployments, is not optimized for aggressive growth in new markets. It limits the DAO’s ability to directly fund the critical early-stage marketing and liquidity incentives needed to build momentum, risking a slower, less impactful launch. This proposal aims to empower the GMX DAO with the resources to actively cultivate the Botanix ecosystem, rather than relying on a more passive distribution of fees.

Specification

We propose implementing the following fee distribution model for the GMX V2 deployment on the Botanix network:

Furthermore, this proposal mandates that for the first year no less than 50% of all fees allocated to the GMX Treasury from the Botanix deployment be directed towards Marketing and Growth Incentives specific to the chain. The use of these funds includes but is not limited to:

Trading Competitions: To attract a critical mass of active traders. Targeted LP Rewards: To incentivize long-term, stable liquidity in strategic markets. Market Maker Incentives: To ensure deep, balanced pools and provide a superior trading experience.

Rationale

This proposal reallocates a portion of protocol revenue from passive distribution to active investment in ecosystem growth. The core rationale is that strategically deploying capital to foster adoption will grow the protocol’s overall revenue more effectively than the current fee structure, leading to greater absolute returns for all stakeholders over the long term.

A dedicated allocation for Marketing and Growth Incentives can:

Accelerate Adoption: Directly incentivizing user activity can overcome the initial friction of a new deployment and build a strong user base quickly. Ensure Deep Liquidity: Attracting and retaining LPs and market makers is the most critical factor for success. This allocation allows for competitive, targeted incentives. Create a Flywheel Effect: Higher volume leads to more fees, which can be reinvested into more growth initiatives, creating a positive feedback loop. Establish a Multichain Playbook: The success of this targeted approach on Botanix can create a repeatable and adaptable framework for launching GMX on future chains, strengthening the entire GMX ecosystem.

This strategic investment in growth is projected to generate value that far outweighs the modest, upfront reduction in the direct fee share, ultimately benefiting the entire GMX ecosystem.

Next Steps

We believe this is a critical strategic decision for the future of GMX’s multichain presence. We invite the community to discuss, debate, and refine this proposal. Pending community feedback, the goal is to move this to a formal Snapshot vote on or before June 16, 2025.

Notes Deployment of cross chain contracts for $GMX and fee distribution are still ongoing, and are not expected to align with the deployment date for GMX on Botanix. Fee distributions to stakers will accrue and be accumulated for distribution once implemented.