The GMX community is about to wrap up a very important vote July 28 on whether to approve a $42 million reimbursement plan. This plan addresses losses incurred by users and presents two distinct pathways for compensation: GLV tokens or stablecoins. The proposal includes a $2 million donation to the DAO and $500,000 loyalty bonus for long-term token holders.
The vote offers two options for reimbursement. One possible route is for funds to be distributed directly through GLV tokens, which is what GLP tokens represent—a share of the GLP liquidity pool. This option features rewards with incentives specifically intended to reward users who hold these tokens for a minimum of three months.
In the other option, affected users would be reimbursed in stablecoins, like USDT. This is intended to focus on the immediate liquidity and lower the exposure to risk and impact of volatility that comes with GMX’s native tokens.
Importantly, GMX V2 users will not be financially compensated from this distribution. They were not to blame for the incident that started the reimbursement plan.
Both reimbursement options share a common element: a $2 million contribution to the DAO. This written contribution will highlight just a small fraction of the community’s dedication to providing relief for GMX’s recovery efforts.
The choice between GLV tokens vs. stablecoins is not a straightforward one. GLV tokens have long-term value with participation in the GLP liquidity pool. Stablecoins allow for instant access to funds and remove some dangers associated with token volatility.
The $500,000 bonus for long-term GMX token holders is intended to incentivize more sustained investment within the GMX ecosystem. It incentivizes users who actively show they care about the long-term growth and health of the platform.
The GMX community’s vote on this reimbursement plan is a defining moment for the platform. The result will determine how impacted users are made whole. This will send a message to the community about where the community places its priorities regarding liquidity, stability, and long-term growth.
