What is this about?

The GMX S.T.I.P. Proposal is a strategic initiative aimed at increasing adoption and activity on GMX V2, a DeFi platform on Arbitrum. The proposal involves creating diverse and liquid perpetual and spot pools that generate yields composable with other protocols. The plan has been approved for a total of 12.0 million ARB tokens, with up to 2 million ARB tokens allocated for a GMX-administered liquidity and volume program for ecosystem partners. The incentives will be distributed over 12 weeks, divided into weekly epochs, and will be used for liquidity incentives, trading incentives, and grants incentives.

How is the community reacting?

The community is actively involved in the decision-making process, with a committee composed of core contributors and ecosystem members overseeing the process. This committee includes KR_GMX, coinflipcanada, jonezee, jrogon, tanoeth, kalcrypto, and shogunfx1, and is supported by a grant administrator, Saurabh Dhekale. The committee will use the Gitcoin grant architecture and post third-party grant applications on gov.gmx.io for community input. The distribution of liquidity and trading incentives will be determined after feedback from risk managers and ensuring grant program requirements are met.

Why this is positive?

The proposal is expected to boost the adoption of Arbitrum and GMX V2 by assisting projects that meet specific criteria, such as wallets, crypto gateways, and upcoming protocols. GMX will allocate up to $2 million in $ARB tokens to support these projects. Additionally, the GMX platform plans to distribute incentives to users who utilize GMX contracts, in the form of grants for providing liquidity, trading, enhancing GMX’s features, and completing integrations, grants, and Request For Proposals (RFPs).

Why this is negative?

While the proposal has many positive aspects, it's important to note that the content presented is for informational purposes only and does not constitute legal, financial, or investment advice, nor represent a binding legal agreement. Contributors act independently and any discussions or proposals should not be construed as a commitment or obligation by any individual contributor. This could potentially lead to misunderstandings or misinterpretations among community members.