@benedetta2a7
With institutional traders accounting for 70% of GMX’s volume, its tokenomics strategy needs reconsideration. Initially, retail-focused liquidity mining helped bootstrap adoption. However, as institutions dominate, continuing retail incentives may be inefficient. A shift toward institutional-focused rewards, such as volume-based rebates or staking benefits for long-term holders, could be more sustainable. GMX must balance rewarding liquidity providers while maintaining token utility. If institutions provide most volume but don’t hold GMX, the token’s value proposition weakens. Adjusting incentives toward institutional engagement without alienating retail users is crucial for long-term success.
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