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Rewards

GMX offers benefits to protocol users, including the ability to participate in the DAO with Voting Power and earn fees from protocol swap and leverage trading activities. These fees are converted to GMX through a buyback mechanism approved by the DAO Tally vote.

Escrowed GMX​

Escrowed GMX (esGMX) has historically been awarded as an incentive for GMX Staking, GLP, referrals, and other programs, and can be used in two ways:

  • Staked for rewards similar to regular GMX tokens
  • Vested to become actual GMX tokens over a period of one year

Each staked Escrowed GMX token will earn the same amount of GMX rewards as a regular GMX token.

Note that Escrowed GMX (esGMX) is not meant to be transferrable unless you are doing a full account transfer. The amount of GMX or GLP required to vest esGMX is unique per account and the max amount of esGMX that can be vested is capped to the esGMX rewards received by that account.

Vesting​

Escrowed GMX (esGMX) tokens can be converted into GMX tokens through vesting, this can be accessed on the Earn page.

When vesting is initiated, the average amount of GMX or GLP tokens that was used to earn the esGMX rewards will be reserved.

For example, if you staked 1000 GMX and earned 100 esGMX tokens, then to vest 100 esGMX tokens, 1000 GMX tokens will be reserved. To vest 50 esGMX, 500 GMX tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.

esGMX tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.

After initiating vesting, the esGMX tokens will be converted into GMX every second and will fully vest over 365 days. esGMX tokens that have been converted into GMX are claimable at anytime.

If a user sells GMX or GLP tokens and would like to vest their esGMX rewards later on, they would need to re-buy the GMX or GLP tokens.

GMX and esGMX can be used interchangeably for the required reserve amount.

Depositing into the vesting vault while existing vesting is ongoing is supported.

Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported, so withdrawing will withdraw and unreserve all tokens as well as pause vesting. Upon withdrawal, esGMX tokens that had been vested into GMX will remain as GMX tokens.

Managing Rewards​

Reward management options are available on the Earn page.

  • Claim GMX Rewards: Claims any pending GMX tokens from GMX staking or any vested esGMX that has been converted to GMX tokens.
  • Stake GMX Rewards: Stakes GMX tokens after they have been claimed.
  • Claim esGMX Rewards: Claims any pending esGMX rewards.
  • Stake esGMX Rewards: Stakes esGMX tokens after they have been claimed.

These options can be accessed through the "Claim" button on the Earn page.