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An overview of the community treasury.
262,550,949 $ethDYDX) 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 $ethDYDX) was allocated to the community treasury, and 766,703 $ethDYDX vests in the community treasury each epoch. Currently, 3,787,251 $ethDYDX vest in the community treasury because several governance proposals resulted in a 3,020,548 $ethDYDX increase in the amount of $ethDYDX available to the dYdX community each epoch:
- DIP 29 - reduce Liquidity Provider Rewards by ⅓ from Epoch 30-32 on dYdX v3 to the following values:
After Epoch 31, there will not be any Liquidity Provider Rewards on dYdX v3. In DIP 29, the dYdX community voted to reduce Trading Rewards by ⅓ from Epoch 30-32 on dYdX v3, however the remaining allocation of Trading Rewards was migrated to the dYdX Chain for Trading Rewards.
- Epoch 30: 383,562 $ethDYDX
- Epoch 31: 191,781 $ethDYDX
- Epoch 32: 0 $ethDYDX
On November 18, 2023, the dYdX community voted to bridge the ethDYDX balance accrued in the Community Treasury from Ethereum to dYdX Chain. Once bridged, the DYDX can be used by the dYdX community with a governance vote on dYdX Chain.
- 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 $ethDYDX to use as $ethDYDX holders decide, whether it be for grants, new liquidity mining pools, or any other program. $ethDYDX 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 ethDYDX from the community treasury.
If, after five years, governance decides to enact perpetual inflation (at a maximum annual inflation of
2%), any newly minted $ethDYDX will be available to the community treasury.
Every second, the Community Treasury Vester (see details here) vests
0.3169242627$ethDYDX to the Community Treasury. Once $ethDYDX has been vested, calling the
claimfunction on the Community Treasury Vester will transfer the vested $ethDYDX 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 $ethDYDX 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 for information only the vested balance of the Community Treasury in the Epoch Review at the end of each epoch. In addition to the vested $ethDYDX in the Community Treasury, the dYdX community can also access the ethDYDX accruing in the Rewards Treasury as a result of the votes to:
Any user with sufficient proposing power can submit proposals. A governance vote will be required to spend any ethDYDX 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 $ethDYDX (proposal threshold for a short timelock vote) of proposal power can create a proposal to transfer ethDYDX 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 dYdX v3's ecosystem growth.