## Understanding GMX Token Supply and Distribution The GMX token serves as the utility and governance token for the GMX V2 markets, allowing holders to accrue fees generated by the platform. Understanding its supply dynamics is crucial for anyone interacting with the GMX ecosystem. This lesson explores the different aspects of GMX supply, how it's distributed, and how to verify these figures. ### Key GMX Supply Metrics Explained When examining GMX token data, you'll encounter several different "supply" figures. It's essential to understand what each represents: 1. **Dashboard "Total Supply" (Circulating/Liquid Supply):** Figures displayed on dashboards (e.g., approximately 10.03 million GMX in the reference example) typically represent the *currently circulating or liquid supply*. This is the amount readily available in the market or staked, not the absolute total ever created. 2. **Total Minted Supply:** This is the absolute number of GMX tokens that have been created on the blockchain since inception. This figure is generally higher than the dashboard supply (e.g., ~10.58 million GMX based on on-chain data). 3. **Forecasted Maximum Supply:** This represents the planned upper limit for the total number of GMX tokens that could potentially exist. For GMX, the documented forecasted maximum supply is **13.25 million GMX**. Reaching or exceeding this requires governance approval. ### How is the Forecasted Maximum Supply Allocated? The GMX documentation outlines the intended allocation for the 13.25 million maximum supply: * **6 million GMX:** Migrated from XVIX and Gambit tokens. * **2 million GMX:** Paired with ETH for liquidity provision on Uniswap. * **2 million GMX:** Reserved for vesting rewards from Escrowed GMX (esGMX). * **2 million GMX:** Allocated to the floor price fund (Treasury). * **1 million GMX:** Designated for marketing, partnerships, and community developers. * **250,000 GMX:** Distributed linearly over two years to core contributors. ### Calculating the Dashboard "Total Supply" The "Total Supply" figure shown on the GMX dashboard is not simply the total minted amount. Instead, it's calculated by taking the **Total Minted Supply** and subtracting tokens held in specific **locked contracts**. These contracts include those used for vesting, bonding programs, and the treasury. The official GMX documentation lists the specific contract addresses on Arbitrum and Avalanche whose balances are subtracted from the total minted figure to arrive at the dashboard's circulating supply number. This calculation provides a clearer picture of the tokens actively participating in the market or staking pools. ### Current GMX Distribution Dashboards often provide a visual breakdown of how the current supply is distributed. A typical distribution might look like this: * **Staked GMX (~61%):** Tokens locked by users in staking contracts to earn platform fees and other rewards. * **Not Staked GMX (~34%):** Tokens held in user wallets but not currently staked. * **GMX in Liquidity Pools (~5%):** Tokens provided to decentralized exchange liquidity pools (e.g., on Uniswap). ### The Role and Impact of Staking Staking GMX plays a significant role in the token's economics: * **Reduces Circulating Supply:** When users stake GMX, those tokens are locked and removed from immediate circulation. * **Counteracts Inflationary Pressure:** By decreasing the readily available supply, staking can help mitigate potential inflation. * **Reduces Sell Pressure:** Fewer tokens available on the open market can potentially lessen downward price pressure from selling. ### Verifying GMX Supply On-Chain You can independently verify the total number of GMX tokens minted using a blockchain explorer for the relevant network (e.g., Arbiscan for Arbitrum). 1. **Locate the GMX Token Contract:** Find the official GMX token contract address. 2. **Read the Contract:** Use the explorer's interface to query the `totalSupply` function (often represented by a function selector like `0x18160dd0`). 3. **Interpret the Raw Data:** The contract will return a very large integer representing the total supply in its smallest denomination. 4. **Adjust for Decimals:** GMX, like many ERC-20 tokens, uses 18 decimals. To convert the raw integer into a human-readable number, you must divide it by 10 raised to the power of 18 (10^18 or `1e18`). For example, if the raw `totalSupply` is `10585596280516719390000001`, dividing by `1e18` yields approximately 10.58 million GMX. This represents the **Total Minted Supply**. ### Reconciling On-Chain Data with Dashboard Figures To reconcile the on-chain **Total Minted Supply** (~10.58 million GMX in the example) with the **Dashboard "Total Supply"** (~10.03 million GMX), you need to account for the locked tokens. By identifying the balances held in the specific vesting, bonding, and treasury contracts listed in the GMX documentation and subtracting them from the total minted supply, you should arrive at the figure presented on the dashboard as the circulating supply. In summary, understanding GMX token supply requires differentiating between the circulating supply shown on dashboards, the total minted supply verifiable on-chain, and the forecasted maximum supply outlined in the documentation. Verifying these figures involves using official documentation and basic on-chain data analysis, remembering to account for token decimals and locked contract balances.