TechFlow news, November 26 — GMX has launched a significant governance proposal aiming to increase the portion of fees allocated toward buybacks and distributions from the current 27% to 90%. Data shows that over the past 30 days, GMX has repurchased 103,764 GMX tokens (approximately 5% of circulating supply), totaling $3.3412 million, with a value retention rate of 91.38%.
The proposal suggests reallocating 63% of fees currently distributed to GM LPs toward token buybacks. If approved, monthly buybacks are expected to rise from 103,700 to 345,500 GMX tokens, increasing the buyback value from $3.344 million to $8.489 million. The proposal also includes an alternative option: adjusting the fee distribution ratio between GMX and GM LPs from 27:63 to 40:50.
Notably, GMX currently generates $9.432 million in total monthly fee revenue, of which $3.344 million is used for buybacks. The proposal emphasizes that expanding buyback coverage will enhance market stability for GMX, enabling it to absorb the impact of a 100,000 GMX token sell-off within 12 days.
