## Understanding the GMX Token and Staking Rewards The GMX token serves a dual purpose within the GMX ecosystem. Primarily, it functions as a **governance token**, granting holders the power to vote on proposals that shape the future direction of the GMX protocol. Additionally, GMX offers utility through **staking**. By staking your GMX tokens on the platform's "Earn" page, you become eligible to receive a share of the protocol fees generated from platform activities, such as trading. These rewards provide an incentive for long-term holding and participation in the ecosystem. Before engaging with staking, users need to acquire GMX tokens. While this guide focuses on staking and related actions, GMX can be obtained through various channels listed on the platform's "Buy GMX" page, including: * Decentralized Exchanges (e.g., Uniswap, GMX itself) * DEX Aggregators (e.g., 1inch, Matcha, Paraswap) * Centralized Exchanges (e.g., Binance, Bybit, Kucoin) * FIAT Gateways (e.g., Banxa, Transak) * Cross-Network Bridges (e.g., Bungee) ## Staking Your GMX Tokens Staking locks your GMX tokens within the protocol, enabling you to earn rewards and gain voting power. Here’s how to stake your GMX: 1. Navigate to the "Earn" page on the GMX platform. You will see your current GMX balances, typically divided into `Wallet` (available to stake), `Staked` (already earning rewards), and `Voting Power`. 2. Click the "Stake" button. 3. A "Stake GMX" pop-up window will appear, displaying the maximum amount of GMX available in your connected wallet that you can stake. 4. Enter the amount of GMX you wish to stake, or click "MAX" to stake your entire available wallet balance. 5. Click the "Stake" button within the pop-up. 6. Approve the transaction in your connected cryptocurrency wallet (e.g., MetaMask) when prompted. Upon successful completion, you will see a confirmation notification. Your `Wallet` balance will decrease by the staked amount, while your `Staked` balance and `Voting Power` will increase correspondingly. For example, staking 0.1 GMX will increase your staked balance and voting power by 0.1 GMX DAO. ## Managing Voting Power and Delegation Staking GMX grants you "Voting Power," measured in GMX DAO, which is directly proportional to the amount of GMX you have staked. This power allows you to participate in GMX protocol governance by voting on proposals. You have two primary options for utilizing your voting power: 1. **Direct Voting:** You can directly cast votes on active governance proposals yourself. 2. **Delegation:** You can delegate your voting power to another wallet address (a "delegate"). This delegate will then vote on proposals on your behalf. To manage delegation: 1. Click the "Delegate" button on the GMX "Earn" page. This action redirects you to the GMX governance portal, typically hosted on a platform like `tally.xyz`. 2. On the governance portal, you can view your current Voting Power and see if it's already delegated to an address. 3. To change or initiate delegation: * Click the option to update or set your delegation (e.g., "Update delegation"). * Choose to delegate to "Someone else." * You can often explore a list of available delegates, viewing their current delegated power and the number of delegators they represent. * Select the desired delegate address and confirm the delegation transaction in your wallet. **Important Consideration:** When you delegate *all* of your voting power to another address, you relinquish your ability to vote directly on proposals using your own wallet. If you attempt to vote on a proposal while your power is fully delegated, the interface will show you have 0 available voting power for that action. To vote directly again, you would need to undelegate or delegate your voting power back to your own address. You can view active and past proposals on the governance portal (e.g., under a "Proposals" tab on Tally). ## Unstaking Your GMX Tokens If you wish to withdraw your GMX from the staking contract back into your wallet, you can unstake it. Unstaking reverses the staking process, reducing your staked balance, your earned rewards potential, and your voting power. 1. Return to the "Earn" page on the GMX platform. 2. Click the "Unstake" button. 3. An "Unstake GMX" pop-up will appear, showing the maximum amount of GMX you can currently unstake. 4. Enter the specific amount of GMX you wish to unstake. Note that unstaking will reduce (burn) your corresponding voting power. 5. Click the "Unstake" button within the pop-up. 6. Approve the transaction in your connected wallet. After the transaction confirms, you'll receive a notification. The unstaked GMX amount will be added back to your `Wallet` balance, while your `Staked` balance and `Voting Power` will decrease by the same amount. For instance, unstaking 0.2 GMX will decrease your staked balance and voting power by 0.2 GMX DAO and increase your wallet balance by 0.2 GMX. ## Claiming Your Staking Rewards Staking GMX entitles you to a share of the protocol's revenue. A key mechanism funding these rewards is the **GMX Buyback**. The protocol uses a portion of the fees it collects (e.g., from trading activity) to purchase GMX tokens from the open market. These bought-back tokens are then distributed as rewards to GMX stakers. To claim your accrued rewards: 1. On the GMX "Earn" page, locate the "Total Rewards" section. This area displays the amount of GMX rewards currently available for you to claim. 2. Click the "Claim" button associated with your rewards. 3. A "Claim Rewards" pop-up will appear, summarizing the amount you are about to claim. Click "Claim" again to proceed. 4. Approve the transaction in your connected wallet. Once the transaction is complete, the claimed GMX rewards will be transferred to your wallet balance. The claimable rewards balance displayed on the "Earn" page will reset to near zero, reflecting that the previously accrued rewards have been collected. New rewards will begin accumulating based on your staked GMX amount.