What is the issuance and circulation of GMX coins?

Issuance of GMX Coins

GMX is the native utility token of the GMX decentralized exchange, a non-custodial platform that enables users to trade cryptocurrencies with up to 50x leverage. The token's issuance follows a pre-determined schedule, ensuring transparency and aligning incentives among stakeholders.

• Total Supply: 13,134,331 GMX, comprising:

  • 3,500,000 tokens distributed to early investors and advisors
  • 9,634,331 tokens allocated to the ecosystem through various mechanisms
• Issuance Schedule:
  • 12% of the total supply released upon mainnet launch in September 2021
  • Remaining supply released linearly over 60 months, ending in December 2026
• Distribution Mechanism:
  • Liquidity Mining: 60% of the tokens are allocated to liquidity providers who stake their GMX and stablecoins on the platform.
  • Escrow: 20% of the tokens are held in escrow, with a gradual release over several years to support platform development and operations.
  • Team Allocation: 12% of the tokens are allocated to the core team and early contributors, subject to vesting schedules.
  • Advisors and Investors: 8% of the tokens are distributed to advisors and early investors.

Circulation of GMX Coins

The circulating supply of GMX coins represents the amount of tokens that are in active circulation and available for trading. This supply is constantly adjusted as new tokens are issued and existing tokens are burned or locked in various ecosystem mechanisms.

• Initial Circulating Supply: Upon mainnet launch, the initial circulating supply was 1,582,000 GMX.
• Liquidity Mining Expansion: As liquidity providers stake their GMX and stablecoins, the circulating supply increases gradually through the distribution of newly issued tokens.
• Staking and Locking: When GMX holders stake their tokens on the platform or lock them in governance programs, the circulating supply is reduced accordingly.
• Token Burns: The GMX protocol periodically burns a portion of its revenue in GMX tokens, reducing the circulating supply and increasing the value of tokens held by users.
• Current Circulating Supply: As of [Date], the circulating supply of GMX is approximately 9,872,000 tokens, representing approximately 75% of the total supply.

Conclusion

The issuance and circulation of GMX coins are designed to foster a sustainable and robust ecosystem. The planned issuance schedule and distribution mechanisms ensure a fair distribution of tokens among participants and incentivize long-term support for the platform. The circulating supply is constantly adjusted through liquidity mining, staking, locking, and token burns, reflecting the active participation and growth of the GMX community.