GMX (GMX) sustainability report

GMX is present on the following networks: Arbitrum, Avalanche.

Arbitrum One does not run a consensus algorithm or a validator set of its own. It is an optimistic rollup: transactions are executed off Ethereum, while Ethereum holds the canonical record and provides final settlement. A sequencer accepts transactions, orders them on a first-come basis and executes them under the chain's state-transition rules, producing blocks roughly four times a second and giving users an immediate local confirmation. The ordered transactions are compressed and published to Ethereum in batches. Because that input data sits on the settlement layer, anyone running the node software can replay it and arrive at the same Layer 2 state without trusting the operator.

Agreement about what that state is happens on Ethereum. Validators post assertions — claims about the rollup's resulting state — to contracts on the settlement layer. Since early 2025 the chain has used a dispute protocol that made validation permissionless, so any party may post an assertion or challenge one rather than only an approved list of operators. Conflicting claims are resolved by an interactive process that narrows the disagreement down to a single step of execution, which Ethereum then adjudicates directly. The protocol is designed so that disputes conclude within a bounded period no matter how many adversaries join them, and so that a single honest participant is enough to defend the correct state. Once the challenge window has passed without a successful dispute, the assertion is confirmed and withdrawals that depend on it become executable through the canonical bridge.

Two qualifications matter for an accurate picture. Ordering is still performed by a single sequencer operated by the chain's development company, so transaction ordering is not decentralized today; censorship is bounded rather than impossible, because a user can submit a transaction to a queue contract on Ethereum and force its inclusion once a defined delay has elapsed. Separately, a security council retains powers over the contracts, which keeps the arrangement short of full trust-minimization. Security therefore rests on Ethereum's proof-of-stake consensus combined with the rollup's fraud-proof mechanism, not on a validator set belonging to the chain itself.

Avalanche's Primary Network is not a single chain but three, each specialized and all validated by the same set of operators. The contract chain hosts smart-contract execution in an Ethereum-compatible environment and is where most applications and issued assets live. The exchange chain handles asset creation and transfers. The platform chain tracks the validator set, staking, and the registration of the sovereign networks that run alongside the Primary Network.

Agreement across all three comes from the Snow family of protocols, which reaches consensus through repeated randomized sampling rather than through the round-based voting of classical Byzantine fault tolerant designs. There is no leader gathering votes from the entire validator set. Instead each node repeatedly asks a small random sample of validators what they currently prefer, adopts whichever answer carries a sufficient majority of that sample, and accepts a decision once it has seen enough consecutive samples agree. Because a node queries a fixed-size sample rather than everyone, the messaging load per node barely grows as the validator set grows, which is what allows the set to be large without consensus becoming the constraint.

Snowman is the variant used for linearly ordered chains, and Snowman++ layers a proposer schedule over it: block-building windows are assigned to proposers in proportion to stake, with production opening more widely if a designated proposer fails to act, which limits contention without introducing a fixed committee. Sampling remains the voting mechanism throughout. An earlier design in which the exchange chain ordered transactions as a directed acyclic graph was retired in 2023 when that chain was linearized, and the whole Primary Network now runs on the same linear engine.

Acceptance is fast, typically under a second, and once a decision is accepted the protocol treats it as irreversible. Formally the guarantee is probabilistic: sampling parameters can drive the chance of two conflicting decisions both being accepted arbitrarily close to zero, but not to exactly zero, which is a different kind of statement from the deterministic finality a quorum-certificate protocol offers. Validators join the Primary Network by bonding the native asset for a chosen term, holders may delegate to them, and the protocol does not slash bonded principal.

GMX is present on the following networks: Arbitrum, Avalanche.

Fees on Arbitrum One are paid in the settlement layer's native asset and split into two economic components. The execution component prices computation and state access on Layer 2 through a base fee that a control loop raises and lowers with demand, in the style of Ethereum's own fee market. The data component covers the cost of publishing compressed batches to Ethereum. A transaction's share of that component is estimated from how many bytes it adds to a compressed batch, so how well its data compresses matters as much as its size, and the fixed cost of a posting is spread over everything in the batch rather than falling on one transaction. Since Ethereum opened a dedicated data space for rollups, batches are posted there and priced by that space's separate fee market. Both components are converted into a single unit, so a user sees one price rather than two.

Payments flow to several places. The party that posts batches is reimbursed from collected fees, with the data price adjusted over time so that reimbursement tracks what was actually spent. Remaining Layer 2 revenue accrues to protocol-controlled accounts — one covering baseline infrastructure, another collecting congestion revenue — which governance directs, rather than being burned. A portion of ordering rights is also sold: a sealed-bid auction awards a short-lived priority lane for a round lasting under a minute, and the proceeds go to an account that chain governance designates. Contracts compiled to WebAssembly run alongside EVM contracts and are metered on their own resource unit.

There is no staking, delegation, issuance or slashing at this layer. The equivalent penalty is a bond: participants that assert or challenge state must lock collateral, and a party that loses a dispute forfeits it, with part compensating the honest side, so an incorrect claim carries a direct cost. Beneath the rollup, Ethereum's own incentives apply to the data it posts — the base fee there is burned and the priority fee goes to the block proposer. There is no recurring storage rent; state is paid for when it is written.

Validators on the Primary Network are compensated out of protocol issuance under a capped supply schedule rather than out of user fees. An operator bonds a minimum amount of the native asset for a chosen staking term and is paid at the end of that term provided it met the uptime requirement. A validator's effective weight is capped relative to its own bonded stake, which limits how much delegated stake any single operator can concentrate. Holders who do not run infrastructure may delegate to a validator for a term and receive the reward net of the fee that validator charges.

The enforcement model is unusual in that bonded principal is not slashed. A validator that fails to meet the uptime threshold simply does not receive its reward for that period and gets its stake back, so the penalty is forfeited income rather than confiscated capital. The most recent protocol upgrade reworked these terms considerably: the minimum staking term was shortened from two weeks to two days, staking terms can now renew automatically with rewards compounded at a chosen ratio, the uptime threshold required to earn a reward was raised for newly started validations, and the average rate at which rewards are issued was reduced.

Sovereign networks running alongside the Primary Network are funded differently. Since the late-2024 upgrade that separated them, their validators no longer need to bond a large stake and validate the Primary Network as well; instead they pay a continuous fee to the platform chain that adjusts with the number of active such validators relative to a target, rising when the population exceeds it and easing when it falls short.

Users of the contract chain pay a base fee plus an optional tip, priced dynamically in the style of Ethereum's fee market. The distinguishing feature is that the fee is burned rather than paid to the block producer, so transaction activity reduces supply and offsets issuance instead of rewarding validators directly. The minimum base fee has been lowered by upgrade and is now a floor that validators adjust collectively rather than a hard-coded constant. The exchange and platform chains likewise price their operations dynamically, and those fees are burned as well. There is no storage rent.

GMX is present on the following networks: Arbitrum, Avalanche.

The consumption attributed to Arbitrum One has two parts, and they are estimated in different ways. The first is the chain's own infrastructure: the machines running the sequencer and the batch-posting process, the validators that track state assertions and would take part in a dispute, and the broader population of full, archive and RPC nodes that other participants operate. The second is the share of Ethereum's consumption that belongs to the rollup, because settlement and data availability happen there. Ethereum's validators do work on the rollup's behalf whenever a batch is posted, and a proportion of their consumption is apportioned to the chain according to how much of the settlement layer's capacity those postings occupy. Ethereum publishes its own account of how that figure is arrived at (Ethereum energy consumption).

Since nothing here is mined, the first part is estimated by counting machines rather than by modeling operator profitability. The size of the node population is approximated from network crawlers, peer discovery and publicly listed endpoints. A representative hardware specification is inferred from what the client software states it needs to stay in sync — processor class, memory, fast storage and bandwidth — and the electricity that specification draws is taken from controlled measurement of equivalent machines, both under load and idling. The total is the aggregate across the estimated population including idle draw, because nodes run continuously whether or not blocks are full. Dispute participation is episodic and contributes little in normal operation. A fraction of the network total is then attributed to an individual asset in proportion to observed on-chain activity involving it.

These are estimates rather than meter readings, and the limits should be read as part of the figure. Node counts are lower bounds, because machines behind private networks cannot be discovered. The hardware mix is inferred from stated software requirements rather than surveyed from operators. Where the evidence runs out, the assumption chosen is the one more likely to overstate consumption than to understate it, and figures are revised as observation improves.

Avalanche is a staked network, so its energy estimate is assembled from the machines that participate rather than from hardware economics driven by block rewards. One structural feature shapes the calculation: a single Primary Network validator runs one node that validates the contract chain, the exchange chain and the platform chain together. The three are therefore not summed as though they were three independent populations, which would count the same hardware three times; the footprint is modeled against one node population serving all of them.

The estimate combines three inputs. The validator set is read directly from the platform chain, which makes the consensus-participating population unusually well observed compared with networks where it has to be inferred. The surrounding population of non-validating full and archive nodes, run by applications, data services and trading venues, is approximated from peer-discovery crawls and public listings, which see only nodes that accept inbound connections and so tend to undercount. A representative hardware profile is then inferred from the published requirements for the node software, and the power draw of such a configuration is taken from measurement of comparable machines under sustained load and at idle, since a validator draws power continuously whether or not it is currently proposing.

The result carries qualifications that should be read as part of the figure rather than as footnotes to it. Node counts and hardware profiles are inferred from public observation and stated requirements, not metered at the socket. Where evidence is missing, the assumptions chosen are the ones more likely to overstate consumption than to understate it. Estimates are revised as crawler coverage and hardware information improve. Sovereign networks that maintain their own validator sets are accounted for separately from the Primary Network rather than folded into it. And where a share of the total is attributed to an individual asset issued on the chain, that share is derived from observed on-chain transfer volumes, which measures how heavily an asset is used rather than the energy it uniquely causes.

GMX is present on the following networks: Arbitrum, Avalanche.

The renewable share is derived geographically, starting from where the machines that keep the chain running actually sit: the servers hosting the sequencer and the batch poster, the validators that participate in the dispute protocol, and the wider population of full and archive nodes. Their locations are inferred from publicly observable network information — the addresses reachable peers announce, hosting and autonomous-system registries, and public node listings — which yields a country-level distribution rather than a precise address for any individual machine. Much of this infrastructure is hosted with commercial cloud and colocation providers, so the region a provider operates a facility in stands in where a single host cannot be placed more precisely. Where the chain's own distribution is too sparse to observe with confidence, the pattern seen on networks of similar shape — alike in how participants are paid and in the class of hardware they run — fills the gap.

The same exercise is applied to the settlement layer, because the portion of Ethereum's consumption attributed to the rollup carries the geographic profile of Ethereum's validator set rather than that of the rollup's own machines. The two distributions are combined, weighted by how much estimated consumption each accounts for.

Country weights are then matched against published statistics on how much of each country's electricity comes from renewable sources, drawn from Share of electricity generated by renewables, compiled by Our World in Data from Ember and the Energy Institute's Statistical Review of World Energy. The result is a consumption-weighted average across the estimated footprint. It is not a statement about what any operator has contracted for: power purchase agreements, on-site generation and renewable certificates are invisible in network data and are not assumed.

Energy intensity is expressed marginally, as the additional electricity associated with one more transaction on top of the infrastructure already running. Because the cost of operating a node is largely fixed and barely responds to how full a block is, that marginal figure is small and moves inversely with throughput, which is why it should not be read as a per-transaction share of the total.

Establishing a renewable share for Avalanche is first a question of geography, because the same hardware draws very different electricity depending on which grid it sits on. The validator set is enumerated from the platform chain, and the network addresses behind those validators, together with the wider set of nodes seen through peer discovery and public network observation, are resolved to hosting providers, autonomous systems and countries. That yields an approximate map of where node capacity is concentrated. Where the mapping is too incomplete to support a result, the observed distribution of a network with comparable staking economics is used in its place.

The map is then joined to national electricity statistics. Each country's share of generation from renewable sources is taken from Share of electricity generated by renewables, compiled and processed by Our World in Data from Ember's yearly electricity datasets and the Energy Institute's Statistical Review of World Energy. Weighting country-level shares by the estimated node capacity located in each gives one renewable percentage for the network as a whole.

Energy intensity is a marginal measure rather than an average: the additional electricity associated with one further transaction being processed. Because validators run continuously and blocks are produced on a schedule regardless of how full they are, the marginal figure is considerably lower than the annual total divided by transaction count, and the two answer different questions.

Several limits constrain what the renewable percentage can mean. Hosting location reveals a grid but not a contract, so operators procuring renewable electricity on a carbon-heavy grid are not distinguished from those that are not. Cloud regions and proxied connections can place a node's apparent location away from its actual hardware. Annual national averages flatten the hourly and seasonal movement in generation mix. And validator infrastructure is concentrated in a relatively small number of hosting markets, so the result is sensitive to how a handful of large operators are located.

GMX is present on the following networks: Arbitrum, Avalanche.

Emissions are derived from the energy estimate rather than measured at the source. The geographic distribution built for the renewable calculation — sequencer and batch-posting infrastructure, dispute-protocol validators, full nodes, and the share of Ethereum's validator set attributed to settlement — is reused, and each country's slice of estimated electricity is multiplied by the average carbon intensity of that country's grid. Grid figures are drawn from Carbon intensity of electricity generation, compiled by Our World in Data from Ember and the Energy Institute's Statistical Review of World Energy and made available under a Creative Commons BY 4.0 license. Regional totals are summed to give a network figure, and a fraction of that figure is attributed to an individual asset in proportion to observed on-chain activity.

The two scopes are treated separately. Scope 1 covers combustion that the operators themselves control — on-site generators, fuel burned directly on their premises. For a chain whose infrastructure sits in commercial data centers this is ordinarily zero or negligible, and it is reported as such unless direct fuel use is known. Scope 2 is the substantive figure: the emissions embodied in the grid electricity that infrastructure draws. It is computed on a location basis, using the average intensity of the grid a machine draws from, rather than on a market basis reflecting supply contracts or certificates, because supplier-level information cannot be observed from the network. Emissions embodied in manufacturing the hardware or building the facilities that house it fall outside this boundary.

Greenhouse gas intensity is stated marginally, as the additional emissions associated with one more transaction. Two limits are worth stating plainly. Grid intensity statistics are annual national averages, so they miss the hourly and sub-national variation any specific facility experiences, and a data center on a dedicated low-carbon supply will be represented by its country's average. And the figure inherits every uncertainty in the energy and location estimates beneath it; where those rest on assumption, the assumption chosen is the one more likely to overstate the result.

The emissions estimate for Avalanche reuses the geographic work behind the renewable share and substitutes carbon factors for renewable percentages. The validator set enumerated from the platform chain, together with the nodes observed through peer discovery and public network data, is resolved to countries; where that resolution is too sparse, the distribution of a network with comparable staking economics stands in. Each country is then paired with the carbon intensity of its electricity, taken from Carbon intensity of electricity generation, processed by Our World in Data from Ember's yearly electricity data and the Energy Institute's Statistical Review of World Energy and published under a CC BY 4.0 license. The estimated electricity in each region, multiplied by that region's grams of carbon dioxide equivalent per kilowatt-hour and summed across regions, gives the annual emissions figure.

Reporting separates two scopes. Scope 1 covers emissions from sources the operators control directly, such as fuel burned on site for power or heat; for a population of servers hosted in rented facility space this is generally negligible and is reported accordingly. Scope 2 covers the indirect emissions embodied in the electricity those machines buy from their grids, which is where effectively the entire footprint of a staked network falls. Hardware manufacture and end-of-life disposal lie outside the boundary of this accounting.

Greenhouse-gas intensity follows the same marginal logic used for energy: the incremental emissions associated with one more transaction, not the annual total divided by throughput.

Uncertainty accumulates across the two steps. Whatever error exists in the electricity estimate passes straight through into emissions, and the geographic step adds its own, since national grid intensities span more than an order of magnitude and shifting a large operator from one country to another visibly moves the answer. Annual averages also conceal the hourly variation in grid intensity that continuously running machines are exposed to in full.