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Trading Rewards

Overview of the Trading Rewards program.
14.5% (144,693,506 $ethDYDX) of the token supply is allocated to be distributed to users who trade on dYdX v3 based on fees paid. Initially, 25.0% of the token supply (250,000,000 $ethDYDX) was allocated for trading rewards.
  • In DIP 16, the dYdX community voted to reduce trading rewards by 25.0%. As a result, the allocation for trading rewards decreased from 25.0% to 20.2%.
  • In DIP 20, the dYdX community voted to reduce trading rewards by a further 45.0%. As a result, the allocation for trading rewards decreased from 20.2% to 14.5%.
  • In DIP 29, the dYdX community voted to reduce trading rewards by ⅓ from Epoch 30-32 on dYdX v3 to the following values:
    • Epoch 30: 1,054,795 $ethDYDX
    • Epoch 31: 527,398 $ethDYDX
    • Epoch 32: 0 $ethDYDX
    Note, in DIP 29 the dYdX community voted to migrate the remaining allocation of Trading Rewards to the dYdX Chain for Trading Rewards.
Trading rewards distributed in a given epoch were/will be reduced from 3,835,616 $ethDYDX to:
  • 2,876,712 $ethDYDX in Epoch 15,
  • 1,582,192 $ethDYDX in Epoch 21,
  • 1,054,795 $ethDYDX in Epoch 30,
  • 527,398 $ethDYDX in Epoch 31,
  • 0 $ethDYDX in Epoch 32 onwards.
After Epoch 31, there will not be any trading rewards on dYdX v3. In DIP 29 on dYdX v3 and Proposal 2 on dYdX Chain, the dYdX community voted to credit the remaining amount of unvested $ethDYDX in dYdX v3 Rewards Treasury Vester to the dYdX Chain Rewards Treasury Vester (dydx1wxje320an3karyc6mjw4zghs300dmrjkwn7xtk)and subsequently distributed as trading rewards on the dYdX Chain, subject to the governance approval on dYdX Chain.
Objectives
  • Incentivize all traders to use dYdX v3.
  • Accelerate market liquidity and overall product usage.

Overview

Fees paid and estimated rewards in a given epoch
Previously, $ethDYDX was distributed to traders based on fees paid on dYdX v3. $ethDYDX was distributed on a 28-day epoch basis over five years and was not subject to any vesting or lockups.
In DIP 29, the dYdX community voted to reduce trading rewards by ⅓ from Epoch 30-32 on dYdX v3 to the following values:
  • Epoch 30: 1,054,795 $ethDYDX
  • Epoch 31: 527,398 $ethDYDX
  • Epoch 32 and all remaining epochs: 0 $ethDYDX
r=R×wnwn  ,n=1,2...kr=R\times \frac{w}{\sum\limits _{n} w_{n}} \ \ ,n=1,2...k
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.
nwn{\sum\limits _{n} w_{n}}
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.

FAQ

Who is eligible for trading rewards?

All traders on dYdX v3 were eligible to receive $ethDYDX as trading rewards.
dYdX v3 is not available to traders in the United States or Restricted Territories, as defined in dYdX Trading Inc.’s Terms of Use.

How much $ethDYDX did I earn in the Trading Rewards program?

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
Rewards from past epochs can be viewed at dydx.community/history/rewards.

How do I claim my Trading Rewards? When can I withdraw and transfer my earned ethDYDX?

Earned $ethDYDX tokens via Trading Rewards will be transferable at the end of each epoch. $ethDYDX token holders are required to wait approximately 7 days (Waiting Period) after the end of the epoch to claim their $ethDYDX 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 $ethDYDX rewards claimable.
Steps:
  1. 1.
    On the Merkle Distributor contract page on Etherscan, click on the Contract tab, and select Write as Proxy.
  2. 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 $ethDYDX.
Portfolio overview of rewards