🪙GMAX Token and xGMAX Staking
GMAX Token:
GMAX is the utility and governance token of GemaX. It has a total fixed supply of 10,000,000 tokens. $GMAX Token Address:
xGMAX Staking Utility:
The GemaX tokenomics are built and centered around xGMAX, which is the staked form of GMAX and serves as the projects main utility and value capture mechanism.
Staking Utility:
100% of revenue distributed to xGMAX stakers
Governance voting rights
Long-term increasing share of protocol through the exit fee mechanism.
Staking benefits for traders: Increased Trader Incentives
Referral Program Rewards
Access to unique strategies and products (Solver LP)
xGMAX Staking Mechanisms: A System for Long-Term Alignment
At GemaX, we are motivated by the idea of creating a system that benefits our community of long-term holders. We believe that focusing on capturing value and rewarding those who stake for the long term will contribute to the sustainability of the GemaX project.
The xGMAX staking parameters are set up with four goals in mind:
To incentivize and reward long-term stakers.
To provide 100% of protocol revenues to these stakers.
To protect loyal stakers from short-term trading habits.
To reward traders through incentives while balancing the health of long-term stakers.
This design draws inspiration from a blend of innovations that preceded us, aiming to align with the long-term values of stakers.
Minting and Redeeming xGMAX:
Similar to staking or unstaking in a straightforward single-sided vault, users deposit GMAX and, in exchange, receive xGMAX. This procedure operates on a dynamic ratio determined by predefined parameters. Initially, the deposit (or minting) ratio is established at 1:1, indicating that for every GMAX deposited, an equivalent amount of xGMAX is received. This ratio can change based on the exit fee applied to users who unstake early, as explained below.
Loyalty Staking: Dynamic Fee and Boost
Depending on how long tokens are staked in xGMAX, users will see an increase in their earnings over time. We also introduce a flexible exit fee structure to enhance the value for all long-term stakers.
Loyalty Stake Duration: This is set at 16 weeks. If you stake for this duration, you can avoid all fees except the standard redemption fee.
Maximum Boost: With a 2.5x value, staking tokens for the full loyalty duration can multiply your rewards by up to 2.5 times. This boost increases gradually over the maturity of your staked position, reaching a maximum of 2.5x.
Early Unstaking Penalty: Unstaking early incurs penalties starting at 25%, gradually decreasing linearly over time. The 25% fee applies for immediate unstaking and decreases to 0.5% over the 16-week period.
Flat Redemption Fee: All staked positions at maximum maturity (16 weeks) have a minimum 0.5% redemption fee.
Dynamic Pool Ratio
The penalties from early unstaking and the flat redemption fee contribute to boosting the dynamic pool ratio, thereby proportionally enhancing the value of all remaining xGMAX stakers' positions.
What it is: This is the rate at which you can convert xGMAX to GMAX.
How it evolves: When someone unstakes early and incurs a penalty, this penalty is added to the pool, effectively raising the amount of GMAX supporting each xGMAX.
How values are determined: The more penalties imposed on early unstakers, the more favorable the GMAX to xGMAX ratio becomes for loyal stakers. The pool ratio changes only when redeeming, not when depositing.
Long-term stakers of xGMAX can benefit as their position increases in value measured by GMAX. The longer you stake, the higher the ratio climbs. Additionally, the proportional share of revenue distributions increases.
Rewarding Long-Term Stakeholders
Trading Revenue: Our tokenomics ensure that 100% of the value created is directed to xGMAX stakers.
Reward Multiplier System: The amount of rewards a staker receives is determined by our system based on how long they've staked. The longer the staking duration, the larger the multiplier. For example, staking for 1 week yields a small fraction of potential rewards, while staking for the full 16 weeks provides the maximum 2.5x boost.
Dynamic Pool Ratio: This mechanism empowers long-term xGMAX stakers to gradually increase their share of the total supply over time. Since all emissions and vesting occur in xGMAX, any redemption and selling activities will also contribute to the benefit of long-term stakers.
This system is crafted to harmonize short-term user movements with long-term stability and growth, ultimately benefiting the entire community.
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