GMX
Crypto Overview
Overview
GMX is a decentralized perpetual exchange protocol that operates on the Arbitrum and Avalanche networks. The GMX token serves as the platform's native token, used for governance and fee distribution.
Intended Utility
The GMX token is designed to incentivize liquidity provision and governance participation in the GMX protocol. Token holders can stake GMX to earn a share of platform trading fees and participate in governance decisions.
Actual Utility
The token is actively used for its intended purposes. According to on-chain data, there is significant staking activity, with over 85% of GMX tokens currently staked. The protocol has maintained consistent trading volume and user activity, demonstrating real utility in the decentralized exchange space.
Token Distribution and Founder Analysis
The token distribution appears balanced, with no single entity holding a concerning concentration of tokens. The founding team's tokens were subject to a vesting schedule, and the project has demonstrated consistent development and improvement since its launch.
Revenue Model Analysis
The protocol generates revenue through trading fees, which are distributed to GMX stakers and GLP holders. While the protocol offers leveraged trading, the core mechanism involves actual asset exchange and value creation through market making and liquidity provision.
Crypto Impact
To assign a comfort level investing in GMX from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to GMX.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.