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4 Mar 2026, 20:45

GMX is rallying after its DAO admitted two years of buybacks failed to lift prices

The native token of GMX, the decentralized perpetuals exchange built on Arbitrum, is in the middle of a rally after its governing body approved an overhaul of its buyback strategy over “limited effectiveness.” The overhaul follows a public admission that its two years of token buybacks have done little to move the market. The token is trading at $7.61 as of the time of writing, an 18.2% increase over the preceding month, as traders absorbed the implications of one of the more candid self-assessments seen from a decentralized autonomous organization in recent memory. The GMX DAO’s Buy Back and Distribute program has repurchased more than 2 million GMX tokens since the end of 2024, a volume roughly equal to the total circulating supply across centralized and decentralized exchanges at the program’s inception. The price, nonetheless, remained suppressed. The DAO came to the conclusion that the culprit was liquidity and structural supply dynamics on centralized exchanges that no amount of open-market buying could offset. What is the GMX DAO actually changing? The new plan by the GMX DAO will consolidate liquidity by withdrawing approximately 600,000 GMX tokens from treasury-controlled positions on Uniswap and Trader Joe, and then redeploying them into GMX’s own liquidity pools and its Solana-based platform GMTrade.xyz. According to the protocol, it will be targeting around 2% of the market cap in combined on-chain depth. Secondly, all staking rewards will not be distributed directly to holders bu t re directed to the treasury, effective from Wednesday, March 4. Those accumulated rewards will only be released once GMX trades above $90, and only proportionally to stakers who have maintained at least 80% of their peak staked balance throughout the waiting period. Any breach of that threshold condition will result i n fo rfeiture of all accumulated rewards with no exceptions. Also, a one-week buy-wall of 1 million GMX will be placed at $5 on on-chain exchanges to absorb any concentrated selling overhang. Others join GMX in questioning buybacks The reckoning at GMX is part of a wider disillusionment with open-market repurchases as a tokenomics tool. Across the industry, protocols spent more than $1.4 billion buying back their own tokens between January 1 and October 15, 2025, according to CoinGecko data . Despite these efforts, prices for many of those tokens continued to fall. Jupiter, the leading decentralized exchange aggregator on Solana, spent over $70 million on JUP token repurchases across the year, roughly half its total protocol fee revenue. The effort proved insufficient against $1.2 billion in scheduled token unlocks. Today, JUP has fallen by over 90% from its peak, and in January 2026, co-founder Siong Ong opened a public debate about halting the program entirely. Siong asked on X , “what do you all think if we stop the JUP buyback?” He also answered the same question in the same post, stating, “We spent more than 70m on buyback last year, and the price obviously didn’t move much. We can use the 70m to give out for growth incentives for existing and new users.” Are there models that actually work? Hyperliquid is most often cited as the counterexample when it comes to buybacks . The derivatives exchange deployed over $644 million in HYPE token repurchases in 2025, accounting for over 46% of all token buyback spending across the industry, and the funds came from trading fees that exceeded $100 million in August 2025 alone. In December 2025, the Hyper Foundation proposed burning approximately $920 million worth of HYPE held in its Assistance Fund, making the supply reduction permanent. HYPE is up by 0.81% in the past 30 days, while Bitcoin and Ethereum are both down more than 5.7% and 6.8%, respectively, over the same period. Hyperliquid’s buybacks are funded from surplus trading revenue, automated, and result in permanent supply destruction. Jupiter’s were funded by diverting operating revenue and manually executed, and the tokens were locked rather than burned, meaning they could eventually return to circulation. GMX’s new approach attempts to bridge the gap via treasury accumulation, as with Hyperliquid, combined with a hard lock-up and price-triggered distribution mechanism designed to reward only long-term holders. It’s not fully possible to gauge the success of the new strategy, as i t ju st got off the ground. If you're reading this, you’re already ahead. Stay there with our newsletter .

4 Mar 2026, 13:40

GMX Staking Rewards Paused in Bold Strategy to Propel Token Price to $90 Milestone

BitcoinWorld GMX Staking Rewards Paused in Bold Strategy to Propel Token Price to $90 Milestone In a decisive move to fortify its financial foundation, the decentralized derivatives protocol GMX has enacted a groundbreaking token value enhancement strategy, immediately pausing all staking rewards until the GMX token price achieves a ambitious $90 target. This strategic pivot, formally ratified by the GMX Decentralized Autonomous Organization (DAO), redirects protocol fees to treasury consolidation and open-market buybacks, marking a significant evolution in the platform’s economic model. The announcement, made public this week, signals a profound shift from direct staker incentives to long-term protocol sustainability and token price appreciation. GMX DAO Approves Radical Token Value Enhancement Strategy The GMX decentralized autonomous organization recently concluded a governance vote, ultimately approving a comprehensive plan designed to enhance the intrinsic value of the GMX token. Consequently, the protocol will implement several immediate changes. Primarily, staking rewards for GMX token holders will cease distribution. Instead, these rewards will be redirected to the protocol’s treasury. This strategic reallocation aims to strengthen GMX’s financial reserves. Furthermore, the DAO has authorized the withdrawal of approximately 600,000 GMX tokens from decentralized exchange liquidity pools on Uniswap and Trader Joe. Valued at roughly $4.55 million, this liquidity will be integrated directly into GMX’s own infrastructure, thereby reducing sell pressure and increasing protocol-controlled value. This decision follows a period of detailed economic modeling and community discussion. Importantly, the GMX treasury will continue allocating 27% of all protocol fees to systematic buybacks of GMX tokens on the open market. These repurchased tokens will be permanently removed from circulation or allocated to the treasury. The combined effect of these measures—reward redirection, liquidity withdrawal, and sustained buybacks—creates a multi-pronged approach to tokenomics. The strategy explicitly ties the restoration of staking rewards to a performance benchmark: the GMX price must surpass $90. This price point represents an approximate 12x increase from current valuation levels, establishing a clear and ambitious long-term goal for the ecosystem. The Mechanics of the New Staking Reward Model The new policy introduces strict conditions for stakers seeking future rewards. Once the $90 price threshold is met, reward distribution will resume. However, stakers must maintain a balance of at least 80% of their historical maximum staked amount. Failure to comply with this maintenance rule will result in the permanent forfeiture of all accumulated rewards. This mechanism encourages long-term commitment and discourages rapid, large-scale unstaking that could destabilize the token’s price. The table below summarizes the key changes: Parameter Previous Model New Model (Effective Immediately) Staking Reward Source Protocol Fees Paused Reward Destination Distributed to Stakers Redirected to Treasury Reward Trigger Continuous GMX Price > $90 Treasury Buyback Allocation 27% of Fees 27% of Fees (Continues) Liquidity Provision Tokens in DEX Pools ~600k GMX Withdrawn to Protocol Context and Impact on the Decentralized Derivatives Landscape GMX operates as a leading decentralized exchange for perpetual futures trading on networks like Arbitrum and Avalanche. The platform distinguishes itself by offering low-swap fees and zero-price impact trades through its unique multi-asset pool. Revenue generated from trading fees and market operations has traditionally been shared with liquidity providers and GMX stakers. This new strategy represents a fundamental recalibration of that value flow. By prioritizing treasury growth and token buybacks over immediate staker payouts, GMX aligns itself with a longer-term, equity-like model often observed in traditional finance. This move occurs within a broader DeFi context where protocols increasingly focus on sustainable tokenomics and real yield. Many earlier DeFi projects faced criticism for inflationary reward structures that diluted token value over time. In contrast, GMX’s strategy reduces immediate sell pressure from stakers claiming rewards. Simultaneously, it actively reduces the circulating token supply through buybacks. Analysts often compare such mechanisms to corporate stock buyback programs, which aim to increase shareholder value by reducing share availability. The direct impact on current stakers is significant, as their yield generation is paused indefinitely. However, the potential upside is a substantially more valuable GMX token should the strategy succeed. Expert Analysis on Protocol-Controlled Value and Sustainability Financial strategists within the decentralized finance sector frequently emphasize the importance of Protocol-Controlled Value (PCV). PCV refers to assets owned and managed by the protocol itself, rather than by transient liquidity providers. The withdrawal of $4.55 million in GMX liquidity from external DEXes directly boosts GMX’s PCV. This action enhances the protocol’s financial resilience and reduces its dependence on external market makers. A stronger treasury can fund future development, security audits, and strategic initiatives without diluting token holders. Historical data from other DeFi protocols suggests that successful buyback-and-build programs can positively influence market sentiment and token price over extended periods. The explicit $90 price target provides a clear narrative and measurable goal for the community and investors. It also introduces a novel conditional incentive structure. Market observers will closely monitor on-chain metrics, including treasury growth, token burn rates, and staking contract balances, to gauge the strategy’s early effectiveness. The success of this model could influence economic design in competing derivatives platforms like Gains Network, Synthetix, and dYdX. Potential Risks and Community Response Considerations While the strategy is ambitious, it inherently carries several risks that the GMX DAO has acknowledged. The primary risk involves staker attrition. Some liquidity providers may unstake their tokens due to the lack of immediate rewards, potentially increasing sell pressure in the short term. The 80% minimum balance rule aims to mitigate this, but its effectiveness remains untested. Additionally, the $90 price target is exceptionally ambitious. Achieving a 12x price appreciation requires not only successful internal tokenomics but also favorable broader market conditions and continued growth in GMX’s core trading volumes. The community’s response will be critical. Governance in a DAO relies on participant alignment. Stakers who joined primarily for consistent yield may dissent, while long-term holders focused on token price appreciation may strongly support the move. The strategy’s transparency and its foundation in a DAO vote are strengths. They demonstrate a commitment to decentralized governance. Future governance proposals may adjust parameters like the price target or the treasury’s fee allocation based on evolving market dynamics and protocol performance. The coming months will serve as a real-world test of this innovative economic experiment in decentralized finance. Conclusion The GMX DAO’s decision to pause staking rewards until the GMX token price reaches $90 constitutes a bold and calculated shift in protocol economics. This token value enhancement strategy reallocates resources to strengthen the treasury, reduce circulating supply, and set a clear long-term valuation goal. By prioritizing Protocol-Controlled Value and sustainable growth over short-term yield distribution, GMX is adopting a mature financial model rarely seen in DeFi. The success of this ambitious plan hinges on continued protocol adoption, favorable market trends, and sustained community support. Ultimately, this move underscores the evolving sophistication of decentralized autonomous organizations in managing complex financial ecosystems for long-term viability. FAQs Q1: Why has GMX paused staking rewards? The GMX DAO approved a new token value enhancement strategy. This plan redirects staking rewards to the protocol treasury to strengthen its financial reserves and fund token buybacks, aiming to significantly increase the GMX token price. Q2: When will GMX staking rewards resume? Rewards will only resume distribution to stakers once the GMX token price surpasses the $90 threshold. There is no predetermined timeline for achieving this price target. Q3: What happens if I unstake some of my GMX tokens? Stakers must maintain a balance of at least 80% of their maximum historical staked amount. If your stake falls below this level, you will permanently forfeit all accumulated rewards, even after the $90 price target is met. Q4: What is happening with the GMX tokens in Uniswap and Trader Joe pools? The protocol will withdraw approximately 600,000 GMX tokens (worth ~$4.55 million) from those external liquidity pools. These tokens will be brought under the direct control of the GMX protocol, increasing its Protocol-Controlled Value. Q5: How does the 27% protocol fee allocation work now? This allocation continues unchanged. Twenty-seven percent of all protocol fees collected will still be used to buy back GMX tokens on the open market. These bought-back tokens are then permanently removed from circulation or sent to the treasury, reducing overall supply. This post GMX Staking Rewards Paused in Bold Strategy to Propel Token Price to $90 Milestone first appeared on BitcoinWorld .

29 Jan 2026, 01:38

Samsung Q4 profits triple to record on AI memory chip surge

Samsung Electronics concluded the year with its strongest-ever results and a threefold increase in fourth-quarter operating profit. Growing demand for artificial intelligence servers and a global shortage of advanced memory chips helped push profits beyond record highs and beat benchmarks. Quarter-over-quarter revenue totaled 93.8 trillion won, or roughly $65.6 billion, beating analysts’ expectations. Operating profit rose to 20.1 trillion won, more than 200 percent higher than a year earlier. It was Samsung’s most impressive quarterly profit on record , breaking through the previous record high of 2018 and confirming the magnitude of its comeback after a sustained semiconductor drop. Surging AI memory demand delivers record earnings The profit boom was led by Samsung’s memory chip division, which delivered record revenue and operating profit. Price increases across the memory market and the expansion of sold-out products in high-value segments boosted overall performance during the quarter. That growth was fueled by high-bandwidth memory (HBM). HBM is a vital part of the AI infrastructure for servers and data centers, enabling the high-performance workloads of generative AI and massive-scale machine learning models. Samsung has increased its focus on this sector in recent years through its Device Solutions division. HBM’s global demand has outpaced supply, with AI chipmakers, including Nvidia , competing for limited volumes. By concentrating memory producers’ attention on the need for AI-related product capacity, shortages in many parts of the broader market have spread into the general market, with price premiums for chips that support personal computers and mobile phones pushing up the cost of chips used in personal computers and smartphones. That pricing strength has massively increased margins for major memory suppliers such as Samsung and its rival SK Hynix, which posted record earnings this week. Samsung said demand for AI and server products is expected to keep climbing heading into the first quarter of 2026. We have also focused on maintaining that focus across our high-performance, high-margin memory product lineup to sustain strong structural growth. Smartphone unit struggles as competition intensifies Though semiconductors contributed to overall performance, Samsung’s smartphone business remained under pressure. The mobile experience and networks business logged an operating profit of 1.9 trillion won in the fourth quarter, almost 10% lower than the same period last year, a far cry from last quarter’s high. Samsung said the weaker result was due to softer momentum from recent mobile launches and tough competition in major markets worldwide. Slower demand growth and pricing pressure hurt profitability, but it retained its status as one of the world’s top handset manufacturers. With 2026 upon us, Samsung is betting on artificial intelligence to revitalize its mobile business. The company will release what it calls “ Agentic AI experiences” with the launch of the upcoming Galaxy S26 series. Simultaneously, it is seeking to expand profits by driving flagship device sales, implementing tighter cost controls, and strengthening its supply chain amid intense global competition. The MX Business intends to consolidate its mobile AI leadership by leveraging next-generation AI experiences and innovation in slimmer, lighter form factors. Additionally, it will pursue comprehensive growth across all segments via AI-driven product sales and new market expansion, while upholding a steadfast commitment to profitability through process optimization amid persistent cost pressures. For now, the AI-powered memory boom is shaping Samsung’s performance. The most recent findings underscore how central advanced chips have become to the company’s growth story and to the broader worldwide technology sector. If you're reading this, you’re already ahead. Stay there with our newsletter .

18 Jan 2026, 10:15

Samsung to pay record bonuses as AI boom lifts profits

Samsung Electronics is set to hand out record bonuses to its team as the artificial intelligence boom translates into profits. The company will pay out some of its biggest performance bonuses in years, as the global memory chip supercycle continues to bring in historic profits as a result of an increase in AI adoption. Device Solutions, the semiconductor division of Samsung, has announced that eligible staff will receive bonuses up to 47% of their base annual salary this month. The payout is expected to be applied across the division’s three businesses: memory, system, large-scale integration, and foundry. It also marks a sharp rebound from 2023, when the division’s bonus rate was 0% after the downturn experienced in the chip market. Samsung announces record bonuses for semiconductor division staff According to reports, this year’s bonus is slightly lower than Samsung’s internal maximum cap of 50%, reflecting the extraordinary recovery that the division has undergone since 2023. Samsung uses its performance-based incentive system called Overachieved Performance Incentive to reward its staff. The reward is carried out once every year and is calculated from 20% of the previous year’s economic value added. Samsung’s mobile MX division, which is in charge of the company ‘s Galaxy smartphone line, will see its OPI payout set at the full 50%. Meanwhile, divisions like consumer electronics and networks will see much lower rates, with reports noting that it could be around the 12% range, based on their 2025 performance. The bonuses come after Samsung announced a record-breaking fourth quarter operating profit of 20 trillion won ($13.6 billion), according to the company’s preliminary announcement. According to analysts’ estimates, the DS division contributed around 16 to 17 trillion won to the numbers, with the contribution driven by an increase in prices of both advanced and general-purpose memory chips. Aside from Samsung, another company preparing a payout for its staff is SK hynix. After scrapping its previous internal cap that had limited bonuses to the equivalent of 10 months’ base salary, the company is now expected to allocate 10% of its total operating profits to this year’s profit-sharing program. SK Hynix teases new profit-sharing program SK Hynix saw its full-year operating profit hit 45 trillion won, and with a workforce of 33,000, the average bonus that is expected to reach each employee is projected to reach more than 140 million, marking a new record high. The company is expected to pay 80% of the bonus up front and will defer the remaining 20% over two years. The company said it will also reintroduce the Employee Share Participation Program, which it debuted last year. Under the program, employees are allowed to choose to take half of their bonus in company shares and receive a 15% cash premium if they hold the stock for a year. The program is designed to encourage long-term alignment between staff and shareholders. Since 2024, Samsung and SK Hynix have redirected much of their chip capacity toward high-bandwidth memory. This is because producing them consumes about three times the wafer capacity of standard DRAM. In addition, the move has created a drop in supply for general-purpose memory such as DDR5, driving up its prices across the board. For SK Hynix, which holds a large share of the HBM market, these margins have been profitable. On the other hand, Samsung has been able to benefit from rising demand for HBM and higher prices in the general memory market due to its larger manufacturing scale. Samsung still retains its position as the global volume leader in the general memory market. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .