A Strategic Plan to Neutralize CEX Supply Overhang and Restore GMX Price Discovery (Revised)

1. Liquidity Optimization

Onchain Liquidity Withdrawal: Withdraw ~ 600,000 GMX from treasury-controlled Uniswap and Trader Joe pools. This figure is an estimate based on current data; final amounts will be determined upon execution.

GMX V2 Deepening: Inject additional liquidity into the GMX-USDC pool on GMX V2 to reach a target of 1% of GMX market cap (requiring an additional ~ $400,000 injection based on current market cap).

Total On-chain Target: Maintain a combined liquidity depth (including GMXSOL) of ~ 2% of market cap, ensuring robust execution for GMX V2 while removing inefficient overhead from Uniswap and Trader Joe.

2. CEX Strategy & Risk Management

Fixed $5 Buy-Wall: A treasury-backed buy-wall for 1,000,000 GMX will be deployed at a fixed price of $5 on major CEXs. This serves as a hard floor to absorb extreme overhang. This price is static and will not be adjusted upward.

One-Week Exposure Window: The buy-wall will remain active for one week only following the proposal’s implementation. This limit is strictly enforced to prevent excessive exposure of Treasury capital to CEX custodial risks.

Operational Security: To eliminate long-term exchange risk, future buybacks will follow a weekly “Deposit-Buy-Withdraw” cycle, ensuring treasury assets are moved to cold storage immediately after execution.

3. Staking & Reward Restructuring

Distribution Pause: All GMX staking rewards will be diverted to the Treasury and remain locked.

The $90 Unlock: Rewards remain locked until GMX price exceeds $90.

Governance-Led Release: Upon reaching the $90 target, Governance will determine the specific distribution schedule to prevent secondary market shocks.

4. Loyalty & “Staking Power”

80% Retention Requirement: To remain eligible for accumulated rewards, a user’s staked GMX balance must never drop below 80% of their peak staked amount from the plan’s inception.

Ineligibility: Any breach of the 80% threshold results in a permanent forfeit of accumulated rewards.

5. Frontend & Transparency

To ensure full transparency, the GMX Staking Dashboard will be updated to display:

Your Staking Power: Your individual contribution based on duration and amount.

Total Staking Power: The aggregate power of all eligible stakers.

Your Share (%): Your current percentage of the total pool.

Total Pending Rewards: The total amount of GMX/fees currently held in the Treasury for future distribution.

Estimated Rewards: The projected amount you will receive once the $90 trigger is met, based on your current share.