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Voting Power

Overview​

The GMX_DAO token governs the GMX DAO. Its introduction represents a significant evolution of the previous GMX governance mechanism. It completes the implementation of a transparent, fully on-chain voting system that includes delegation services.

This on-chain governance system for the protocol further decentralises the governance structure and decision-making processes, while strengthening community involvement within the GMX ecosystem.

Staking and Voting Power​

To be eligible to participate in GMX DAO governance, users need to stake their GMX (and esGMX) tokens in the Earn section of the GMX Dapp. Once the tokens are staked, users will receive GMX_DAO tokens in a 1:1 ratio. With these tokens, users can engage in governance by voting on proposals themselves or electing a delegate to vote for them.

Notes​

  • Unstaked GMX cannot be used to vote on governance proposals. The tokens must be staked first to receive GMX_DAO tokens with governance power.
  • When users unstake their GMX and esGMX tokens, they will lose their Voting Power in GMX governance.
  • If a user has not delegated their tokens on the Governance platform Tally.xyz (either to themselves or to a delegate), they won't be able to utilise the Staking, Claiming or Compound features in the GMX Dapp.

How to nominate yourself as a delegate​

  • Complete the delegate statement on the GMX Governance forum. The delegate statement can be seen as an ‘application form’ that gives the community an idea of your experience, talents, and potential contributions to the GMX Protocol.
  • Go to https://www.tally.xyz/. Tally is a governance front-end for on-chain DAOs.
  • Search for GMX and click on the first option. This will take you to: www.tally.xyz/gov/gmx
  • Connect your preferred wallet to Tally, and make sure your wallet is connected to Arbitrum. If you are a new user on Tally, you will need to create a new profile. If you have already used Tally, however, your profile should show up.
  • As the next step, you should delegate your tokens to nominate yourself as a GMX delegate. Click 'My Voting Power' on the right side of your screen:
  • After clicking on 'My Voting Power', you will be redirected to a new page. Here, you will need to click on 'delegate.' You have two options: you can delegate the tokens to yourself or to another wallet. If you wish to nominate yourself with the connected wallet, click on the 'Myself' option. If you want to concentrate the voting power in a wallet other than the one connected, click on 'Someone else' and enter the wallet address where you want to receive the delegated voting power.
  • Once the process is complete, your name will appear on the GMX DAO landing page alongside the names of other delegates who have nominated themselves.

How to delegate tokens to other delegates​

If you are a GMX token holder yet are unable to actively participate in DAO activities, you have the option to nominate a delegate from the community to represent you and vote on proposals for you.

However, before delegating your voting power, please note that you're trusting someone else to vote on your behalf. It's crucial to choose a delegate whose values align with yours and whom you trust to make decisions in the best interest of the GMX DAO and its community.

Step-by-step guide on how you can delegate your tokens​

  • Navigate to the GMX Dapp.
  • Click on the Earn page in the header menu.
  • To proceed, click on Stake. Once your GMX tokens are staked, your Voting Power will show in the form of GMX_DAO tokens:
  • Click on the delegate button to go to the GMX DAO landing page on Tally.
  • Connect your wallet to Tally (and make sure your wallet is connected to Arbitrum). If you are a new user on Tally, you will need to create a new profile. If you have already used Tally, however, your profile should show up.
  • You should see a few ‘Rising Delegates’ highlighted on the landing page. Click the ‘Explore all delegates’ button underneath this section, view all the available delegates, and find the one you’re most comfortable delegating your voting power to.
  • You can delegate your tokens by clicking the ‘Delegate’ button next to your chosen representative, or you can click on 'My voting power' if you want to actively manage your voting power yourself.
  • In the latter case, click 'Delegate' on the My Voting Power page. You will have two options here: to delegate the tokens to yourself or someone else. If you choose 'Someone else,' you will need to enter the wallet address of the delegate to whom you plan to delegate your voting power.
  • Once you click 'delegate,' wait for the transaction to be confirmed. Your delegation will be completed once the transaction is successfully confirmed on the blockchain.

It is possible to change your delegation on Tally later on if so desired.