1.4 Benefits of Holding GRX

Holding GRX is designed to reward long-term supporters of the GroveX and GRX Chain ecosystem through airdrop priority and a yearly profit-based GRX buyback and distribution program.

1) Airdrop Priority Based on GRX Holdings

GRX holders receive priority eligibility and allocation in ecosystem airdrops based on the amount of GRX they hold. While each campaign may have its own rules (tiers, minimum balances, eligibility windows, and allocation caps), the guiding principle is consistent:

• Higher GRX holdings = higher airdrop priority and potential allocation

This approach is intended to reward genuine holders and reduce short-term “in-and-out” farming behavior.

2) Annual GroveX Profit Rewards (Buyback + Airdrop Distribution)

GRX is structured to provide a yearly holder benefit, similar in concept to dividend-style rewards in traditional finance, delivered via a transparent crypto-native mechanism: buyback and distribution.

Net profit definition

Each annual distribution cycle uses GroveX’s net profit after operational costs and taxes for the preceding calendar year (e.g., the January 2027 distribution uses the 2026 net profit).

A portion of this net profit will be allocated to buy GRX from the market and distribute it to eligible holders.

Annual profit allocation percentage (variable)

The profit allocation percentage may change each year, subject to program and business conditions.

• Minimum allocation floor: the allocation percentage may be reduced, but it will not be reduced below 1%.

Target allocation disclosure (January): the target allocation percentage for the cycle will be announced in the annual January program announcement.

Final confirmation (after distribution): after the distribution is completed, GroveX will publish the final confirmed allocation percentage and a summary of the distribution results.

• Target allocation for 2026 and 2027 cycles: for the January 2026 and January 2027 distribution cycles, the target allocation is 10% of GroveX net profit (after operational costs and taxes) for the preceding calendar year.

If GroveX net profit is zero or negative, no buyback and no distribution will occur for that year.

Annual program announcement

The annual program announcement (including target allocation, snapshot date/time, distribution schedule, and key rules) will be published within the first 14 days of January each year through official channels.

Snapshot timing (primary method: single snapshot)

Eligibility is determined primarily by a single snapshot taken once per year:

• Snapshot window: the snapshot will occur between January 15 and January 21 each year (after the annual program announcement).

• Timezone: the snapshot will use a clearly defined timezone (e.g., UTC or AEST/AEDT, as announced).

Exceptional cases: In rare situations (e.g., suspected manipulation, abnormal activity, or technical issues), GroveX and/or GRX Chain may use an average balance calculated from multiple snapshots taken within the snapshot window to protect fairness and program integrity.

Minimum holding requirement (balance + holding period)

To qualify for the annual distribution, users must meet both requirements:

• Minimum eligible balance: at least 10 GRX (spot & unlocked) at the snapshot time

• Minimum holding period: eligible GRX must be held for at least 6 months prior to the snapshot

Clarification (10 GRX minimum): the 10 GRX minimum applies to the eligible (spot & unlocked) balance counted at snapshot, after all exclusions are applied.

Holding period measurement: the 6-month requirement is determined using GroveX account holding history and/or on-chain wallet history.

Holding period edge case: the 6-month requirement applies to the same GRX balance being counted. Newly purchased or newly deposited GRX may not qualify immediately, and transfers or movements that break continuity may reset the holding period for the transferred amount.

Eligible holdings (spot & unlocked only)

Only spot, unlocked GRX is eligible for the annual distribution.

To ensure the program rewards true holders, the snapshot calculation will exclude:

• Liquidity Pool (LP) holdings and LP tokens (including any pooled GRX)

• Staked or locked GRX (including tokens held in staking contracts or similar lock mechanisms)

• Company-known wallets as defined and maintained on docs.grxchain.io (including, but not limited to, treasury, team, operational, market-making, and other internally identified wallets)

Distribution method (proportional to holdings)

The GRX purchased through the annual buyback will be distributed proportionally based on each holder’s percentage of total eligible GRX counted in the snapshot.

Example (simple): If the total eligible balance is 1,000,000 GRX and you hold 10,000 eligible GRX (which is 1%), you will receive 1% of the annual buyback distribution.

Buyback venue and execution

• Buybacks will be executed on GroveX and/or through approved on-chain mechanisms on GRX Chain, as applicable.

• Buybacks may be executed in one transaction or in multiple tranches to reduce slippage and improve execution quality.

Distribution channels (direct airdrop)

Rewards will be delivered directly to eligible holders across both environments:

• On GroveX: GRX credited automatically to eligible users’ GRX spot wallet

• On GRX Chain: GRX airdropped directly to eligible on-chain addresses (or made available through an official claim method if required)

Payout timeline

Distribution will be completed within 30 days after the snapshot, unless delayed due to security checks, compliance review, operational constraints, or force majeure events. Any delay will be communicated through official channels.

Partnership Notice (Separate Brands)

This annual rewards program is delivered through a partnership between GRX Chain and GroveX. GRX Chain and GroveX are separate brands and may operate independently, but collaborate to support the GRX ecosystem and GRX holder incentives.

Transparency & Reporting

To support clarity and accountability, GroveX will aim to provide annual updates covering key program milestones, such as:

• confirmation of the yearly profit allocation basis,

• buyback execution status, and

• distribution completion announcements (with verification details where possible, without compromising security or compliance).

Profit reporting basis: the profit calculation is based on GroveX internal financial reporting (and may be adjusted for compliance, accounting, or regulatory requirements where applicable).

Public verification (on-chain): on-chain distributions will be verifiable via GRXscan, and relevant transaction references may be shared through official announcements.

Important Notes (Execution, Eligibility Details, Compliance, and Program Updates)

GroveX snapshot balance rules

For GroveX accounts, eligibility is based on spot, unlocked GRX. Depending on platform mechanics, the snapshot may exclude balances that are:

• placed in open orders,

• under withdrawal/settlement/compliance holds, or

• otherwise locked/restricted at the snapshot time.

Where applicable, GroveX will publish the exact balance rules and snapshot details in advance.

On-chain holding-period calculation (clarification)

For GRX Chain wallets, the 6-month holding requirement may be assessed using on-chain address history. Tokens received recently by an address (including via transfers) may be treated as newly acquired for holding-period purposes and may not qualify until the 6-month requirement is satisfied for that portion of the balance.

On-chain eligibility, dust balances, and delivery method

• For operational and network efficiency, very small (“dust”) balances and/or tiny distribution amounts may be excluded from automatic on-chain airdrops, rounded, consolidated, or handled via a claim-based distribution method.

• If a claim process is used, it will only be provided through official GroveX / GRX Chain channels.

Rounding and minimum distribution handling

• Distribution amounts may be subject to rounding. Very small allocations may be excluded or consolidated due to operational constraints.

Right to withhold payment (security / compliance / suspicion)

• GroveX and/or GRX Chain reserve the right to withhold, delay, reduce, or cancel distribution to any account, wallet, or address that is flagged for suspected fraud, manipulation, sybil activity, market abuse, sanctions risk, chargeback risk, or other security/compliance concerns.

• Where appropriate, additional verification may be required before rewards are released.

Handling of withheld or undistributed GRX

• Any GRX that is withheld, undistributed due to exclusions, or remaining due to rounding/operational constraints will be returned to treasury.

Multi-account and anti-abuse policy

• GroveX may merge, limit, or disqualify eligibility for accounts suspected to be controlled by the same user or group if used to manipulate reward outcomes.

Address responsibility and recoverability

• Users are responsible for maintaining control of their GroveX account and/or on-chain wallet address. Rewards sent to an incorrect address, compromised wallet, or inaccessible account may not be recoverable.

Missing distribution reporting window

• If a user believes they are eligible but did not receive a distribution, they must report it within 14 days of the official distribution completion announcement. Claims submitted after this window may not be eligible for review.

Force majeure / extraordinary events

• The program may be delayed or adjusted due to network outages, exchange downtime, security incidents, or other extraordinary events beyond reasonable control.

Staking/LP note (separate incentives)

• Staked GRX and LP positions may qualify for separate incentives, but they are excluded from this annual holder distribution unless explicitly stated otherwise.

Taxes and user responsibility

• Users are responsible for any tax reporting and obligations related to receiving GRX rewards in their jurisdiction.

Not equity / ownership

• GRX is not shares or equity and does not provide ownership rights in GroveX. This program is a token-based incentive and does not represent shareholder dividends.

Jurisdiction & compliance

• This program may not be available in all jurisdictions and may be adjusted to comply with applicable laws and regulations.

No guaranteed returns

• Rewards depend on GroveX profitability, market conditions, and operational factors. Holding GRX does not guarantee a specific reward amount or timing.

Program modifications or suspension

• GroveX and/or GRX Chain may delay, pause, adjust, or refine the program due to security risks, regulatory requirements, extreme market conditions, or suspected abuse. Where possible, material changes will be communicated in advance through official channels.

Priority of documentation

• In the event of any inconsistency between promotional materials, social posts, or community messages and the official documentation/terms, the official documentation/terms will prevail.

Security notice (official channels only)

• Snapshot times, eligibility criteria, and claim links (if any) will be posted only via official GroveX / GRX Chain channels.

• Support will never DM users to request private keys, seed phrases, or funds.