GMX Halts Staking Rewards, Targets $90 to Revamp Tokenomics

To strengthen its financial foundation and drive long-term token value growth, decentralized derivatives protocol GMX has announced the suspension of all GMX token staking rewards until its price reaches the target threshold of $90. This significant adjustment, formally approved by the GMX Decentralized Autonomous Organization (DAO) through a vote, marks a strategic shift in the platform's economic model from short-term incentives to long-term sustainability.

Under the new plan, funds previously allocated for staking rewards will be entirely redirected to the protocol's treasury to enhance liquidity reserves and market intervention capabilities. Simultaneously, the DAO has authorized the withdrawal of approximately 600,000 GMX tokens, valued at around $4.55 million, from liquidity pools on decentralized exchanges such as Uniswap and Trader Joe. These assets will be reintegrated into the protocol's control system to reduce market selling pressure and increase Protocol Controlled Value (PCV). Notably, the GMX treasury will continue to allocate 27% of protocol revenue to repurchase tokens on the open market. The repurchased tokens will be either permanently burned or locked in the treasury, creating a continuous deflationary mechanism. This series of measures—suspending rewards, reclaiming liquidity, and periodic buybacks—collectively constructs an incentive loop centered on price performance: staking rewards will only be reactivated when the GMX price exceeds $90. To safeguard the interests of long-term token holders, the new rules also establish strict reinstatement conditions: if rewards are restarted, users must maintain at least 80% of their historical peak staking amount; otherwise, they will permanently forfeit accumulated rewards. This mechanism aims to curb short-term arbitrage behavior and encourage stable, long-term token holding, thereby providing structural support for price stability. As a leading platform in the decentralized derivatives space, GMX's reform not only reshapes its own token economic system but also offers the entire DeFi News industry new insights into how to balance incentives and value creation. The market generally views this as a high-risk, high-reward long-term value investment experiment, the success or failure of which may influence future protocol governance and token model design paradigms.