GMX (GMX)

Tokenomics & Utility

The GMX token is the protocol’s utility and governance asset. GMX has a forecasted max supply of 13.25 million tokens, subject to governance if ever adjusted. The original allocation included tokens reserved for the XVIX/Gambit migration, Uniswap liquidity, incentives/treasury, and contributors. Escrowed GMX (esGMX) is an incentive token that can be staked for rewards like regular GMX or vested linearly over one year into GMX. (docs.gmx.io)

Staking and rewards work as follows:

• Stake GMX (and esGMX) to earn staking rewards. In V2, swap and perps fees flow into a buyback mechanism, and rewards to stakers come in GMX sourced from those buybacks. This ties protocol usage directly to GMX token flows. (docs.gmx.io)

• esGMX can be staked to compound rewards, or vested into GMX over 365 days with a reserve requirement based on the GMX/GLP used to earn the esGMX. This vesting design encourages longer‑term alignment with the protocol. (docs.gmx.io)

• Governance: Staked GMX/esGMX grant GMX_DAO voting power 1:1 to vote on proposals (and delegate if desired). On‑chain execution occurs through formal GIP proposals on Tally after Snapshot signaling. (docs.gmx.io)

You’ll often see “GMX tokenomics” referenced in research. The big picture is that V2 connects trading activity, fee generation, oracle costs, and staking rewards in a clearer loop than before. While older articles highlight ETH/AVAX fee sharing, the current docs emphasize buybacks funding GMX staking rewards—an important shift to note when comparing analyses. (docs.gmx.io)