Looking at GMX buybacks: a total of 2.03 million tokens repurchased, why is the staking annualized rate as high as 21.59%

GMX announced the latest buyback progress on January 8: approximately 16,800 GMX were repurchased from the open market over the past week, bringing the total buyback amount to 2,031,625 GMX. Meanwhile, the average annualized yield for stakers reached 21.59%, with an expected annualized staking yield of 11.94% over the next 7 days. Behind these figures lies the operational logic and token economic design of this veteran on-chain derivatives trading platform.

Stability Signal of Buyback Scale

According to the latest news, GMX’s buyback scale over the past week was about 16,800 GMX. From the total accumulated buyback of over 2 million, GMX has invested considerable resources into token repurchases.

This continuous buyback behavior sends several signals:

• The project’s confidence in the value of GMX tokens
• Hedging the pressure of the infinite supply mechanism by reducing circulating supply
• Demonstrating the project’s sustainable profitability to the market

It is worth noting that GMX adopts an infinite supply model, meaning new tokens can be continuously issued. Under this mechanism, buybacks become especially important — they are a key method to balance supply pressure.

The True Source of Staking Returns

An average annualized staking yield of 21.59% may seem high, but this figure is not arbitrary. According to relevant information, GMX, as a perpetual DEX (perpetual contract trading platform), primarily earns revenue from trading fees.

This comparison clearly illustrates the point: high yields are not generated out of thin air but are based on actual trading fees. Market data shows that GMX’s trading volume and open interest are both increasing, directly supporting the sustainability of staking returns. In other words, stakers can earn high yields because real trading activity is generating fees on the platform.

Multi-Dimensional View of Project Health

From several perspectives, GMX’s current status warrants attention:

Market size vs. trading activity mismatch

Market cap is only $88.40 million, but the 24-hour trading volume reaches $11.94 million. This ratio indicates a high trading density, reflecting active user engagement.

Completion of multi-chain deployment

According to relevant information, GMX completed its multi-chain deployment in 2025. This means the platform is no longer limited to a single chain, providing users and liquidity with more options, which is beneficial for long-term growth.

Treasury reserves

Related information mentions that GMX’s treasury still holds $37 million in reserves. This provides a buffer for ongoing operations and potential development investments.

Future Sustainability Concerns

Based on current data, GMX’s buyback and staking yields form a positive feedback loop: platform trading fees support staking yields, high yields attract more stakers, and increased participation enhances platform liquidity and activity.

However, attention should be paid to:

• The fluctuation of staking yields (dropping from an average of 21.59% to 11.94% over the next 7 days), reflecting changes in trading volume
• The sustainability of buybacks under the infinite supply mechanism depends on the platform’s continued profitability
• In an environment of increasing market competition, GMX needs to maintain its trading volume growth momentum

Summary

GMX’s ongoing buybacks and high staking yields demonstrate the platform’s self-improving mechanism. Buybacks support token value by reducing circulating supply, while staking returns are directly derived from trading activity. This is not a one-way transfer of value but an economic cycle based on real trading volume.

Market performance shows growth in both 24-hour trading volume and open interest, which underpins its yields. The key question is whether this growth can be sustained into 2026 and whether multi-chain deployment can further expand the platform’s user base. For stakers, continuous attention to changes in trading activity is essential, as it directly determines the sustainability of staking returns.