Trading Rewards
Overview of the Trading Rewards program.
20.2
%
(201,883,560 $DYDX
) of the token supply is allocated to be distributed to users who trade on the dYdX Layer 2 Protocol based on fees paid. Initially, 25.0%
of the token supply (250,000,000 $DYDX
) was allocated for trading rewards. Trading rewards distributed in a given epoch were reduced from 3,835,616 $DYDX to 2,876,712 $DYDX in Epoch 15, and from 2,876,712 $DYDX to 1,582,192 $DYDX in Epoch 21.
Objectives
- Incentivize all traders to use the dYdX Layer 2 Protocol.
- Accelerate market liquidity and overall product usage.

Fees paid and estimated rewards in a given epoch
$DYDX will be distributed to traders based on fees paid on the dYdX Layer 2 Protocol. $DYDX will be distributed on a 28-day epoch basis over five years and is not subject to any vesting or lockups. 1,582,192 $DYDX will be distributed per epoch.
With the community voting to proceed with a 25% reduction in trading rewards by 958,904 $DYDX in DIP16, and a further 45% by 1,294,520 $DYDX in DIP20, the remaining 2,253,424 $DYDX that accrues in the Rewards Treasury can be used/directed by the dYdX community with a governance vote.

Term | Definition |
---|---|
r | Reward for a specific trader. |
R | Total reward to be split between all traders in the pool for the epoch. |
f | Total fees paid by a trader in this epoch. |
w | Individual trader score. |
| Sum of all trader scores. |
k | Total number of traders in this epoch. |
In DIP-13, the dYdX Community voted to simplify the formula to be based on total fees paid by a trader in a given epoch.
All traders on the dYdX Layer 2 protocol are eligible to receive $DYDX as trading rewards.
The dYdX Layer 2 Protocol is not available to traders in the United States or Restricted Territories, as defined in dYdX Trading Inc.’s Terms of Use.
In the current epoch, users can see fees paid and estimated trading rewards at trade.dydx.exchange/portfolio/rewards where users' trading data exists.

Fees paid and estimated rewards in a given epoch
Earned $DYDX tokens via Trading Rewards will be transferable at the end of each epoch. $DYDX token holders are required to wait approximately
7 days
(Waiting Period) after the end of the epoch to claim their $DYDX tokens. After the 7-day waiting period, any community member can call the
Write
function on theupdateRoot
parameter on the Merkle Distributor contract to make DYDX rewards claimable. Steps:
- 1.On the Merkle Distributor contract page on Etherscan, click on the
Contract
tab, and selectWrite as Proxy.
- 2.Click on the
Connect to Web3
button and connect your Web3 Wallet.

3. Scroll down to the
updateRoot
parameter, and click on the Write
button.
This transaction would require some ETH for gas fees, and will the transaction will fail if:
- The 7-day waiting period is still in effect, or
- A community member has already successfully called the
updateRoot
parameter on the Merkle Distributor contract.
Once the transaction is finalized, traders can claim their Trading Rewards here. Users will need to click on
Claim
, sign a transaction, and pay gas fees to claim $DYDX.
Portfolio overview of rewards
Last modified 1mo ago