An overview of the community treasury.
219,194,788 $DYDX) of the token supply is allocated to the community treasury for the dYdX community to use on an ongoing basis for contributor grants, community initiatives, liquidity mining, and other programs. Initially,
5.0%of the token supply (
50,000,000 $DYDX) was allocated to the community treasury, and 766,703 $DYDX vests in the community treasury each epoch. Currently, 3,787,251 $DYDX vest in the community treasury because three governance proposals resulted in a 3,020,548 $DYDX increase in the amount of $DYDX available to the dYdX community each epoch:
- Fund programs and initiatives that drive the growth of dYdX.
- Develop grant programs to fund community NFTs, hackathons, analytics dashboards, memes, swag, third-party tools, translations, and other projects.
- Develop a best-in-class governance system and incentivize robust governance.
The community treasury will retain $DYDX to use as $DYDX holders decide, whether it be for grants, new liquidity mining pools, or any other program. $DYDX will vest to the community treasury on a continuous basis over the course of five years. A governance vote will be required to spend any $DYDX from the community treasury.
If, after five years, governance decides to enact perpetual inflation (at a maximum annual inflation of
2%), any newly minted $DYDX will be available to the community treasury.
Every second, the Community Treasury Vester (see details here) vests
0.3169242627$DYDX to the Community Treasury. Once $DYDX has been vested, calling the
claimfunction on the Community Treasury Vester will transfer the vested $DYDX to the Community Treasury. Any dYdX community member can call the
claimfunction on Etherscan here (which would require some ETH for gas fees) to move the vested $DYDX from the Community Treasury Vester to the Community Treasury.
dYdX community members can view the vested balance of the community treasury here. Further, dYdX Foundation publishes the vested balance of the Community Treasury in the Epoch Review at the end of each epoch. In addition to the vested $DYDX in the Community Treasury, the dYdX community can also access the $DYDX accruing in the Rewards Treasury as a result of the votes to (1) reduce trading rewards by 25% (958,904 $DYDX), (2) set the rewards for staking USDC to 0 (383,562 $DYDX), and (3) set the rewards for staking $DYDX to 0 (383,562 $DYDX). Starting in Epoch 21, 3,020,548 $DYDX will accrue in the Rewards Treasury each epoch and can be used by the dYdX community with a governance vote.
Any user with sufficient proposing power can submit proposals. A governance vote will be required to spend any $DYDX from the community treasury. To submit a proposal, please submit a dYdX Improvement Proposal (DIP) as laid out in the DIP Proposal Lifecycle.
Reverie has put together a comprehensive, technical, step-by-step guide on how any dYdX community member with more than 5M $DYDX (proposal threshold for a short timelock vote) of proposal power can create a proposal to transfer $DYDX from the Community Treasury to a destination address. Click here to access the technical guide.
A community-managed treasury opens up a world of possibilities. We hope to see various experiments and initiatives, including ecosystem grants, which can foster the dYdX Layer 2 Protocol’s ecosystem growth.