Allocations

Allocations for the ethDYDX token.

Allocations

A total of 1,000,000,000 ethDYDX have been minted, and started to become accessible over five (5) years, on August 3rd, 2021, at 15:00:00 UTC. The initial five-year allocation of the total supply of $ethDYDX was as follows:

• 50.0% (500,000,000 $ethDYDX) to the community as follows:

  • 25.0% (250,000,000 $ethDYDX) based on the Trading Rewards Formula,

  • 7.5% (75,000,000 $ethDYDX) to past users who complete certain trading milestones on the Layer 2 protocol (Retroactive Mining Rewards),

  • 7.5% (75,000,000 $ethDYDX) based on the Liquidity Provider Rewards Formula(s),

  • 5.0% (50,000,000 $ethDYDX) to a Community Treasury,

  • 2.5% (25,000,000 $ethDYDX) to users staking $USDC to a Liquidity Staking Pool,

  • 2.5% (25,000,000 $ethDYDX) to users staking $ethDYDX to a Safety Staking Pool,

• 27.7% (277,295,070 $ethDYDX) to past investors of dYdX Trading Inc.,

• 15.3% (152,704,930 $ethDYDX) to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and

• 7.0% (70,000,000 $ethDYDX) to future employees and consultants of dYdX Trading Inc. or dYdX Foundation.

Since the launch of $ethDYDX, there have been several governance proposals that have resulted in changes to the initial allocation. Currently, the allocation includes:

• 50.0% (500,000,000 $ethDYDX) to the community as follows:

  • 14.5% (144,693,506 $ethDYDX) based on the Trading Rewards Formula,

    • In DIP 16 and DIP 20, the dYdX community voted to reduce trading rewards by a total of 2.3M $ethDYDX. (958,904 $ethDYDX from DIP 16 and 1,294,520 $ethDYDX from DIP 20). The 2.3M $ethDYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

    • 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

  • 5.0% (50,309,197 $ethDYDX) to past users who complete certain trading milestones on the dYdX Layer 2 Protocol (Retroactive Mining Rewards),

    • After Epoch 0, 24,690,803 unclaimed $ethDYDX from the Retroactive Mining rewards program were transferred to the Community Treasury.

  • 3.3% (32,794,525 $ethDYDX) based on the Liquidity Provider Rewards Formula(s),

    • In DIP 24, the dYdX community voted to reduce Liquidity Provider rewards by 50% from 1,150,685 $ethDYDX per epoch to 575,343 $ethDYDX per epoch. The excess 575,342 $ethDYDX per epoch will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

    • In DIP 29, the dYdX community voted to reduce Liquidity Provider rewards by ⅓ from Epoch 30-32 on dYdX v3 to the following values:

      • Epoch 30: 383,562 $ethDYDX

      • Epoch 31: 191,781 $ethDYDX

      • Epoch 32: 0 $ethDYDX

  • 26.1% (261,133,225 $ethDYDX) to the Community Treasury,

  • 0.6% (5,779,608 $ethDYDX) to users staking $USDC to a Liquidity Staking Pool,

    • In DIP 14, the dYdX community voted to set the rewards associated with staking $USDC to 0. The 383,562 $ethDYDX previously distributed to $USDC stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

  • 0.5% (5,289,939 $ethDYDX) to users staking $ethDYDX to a Safety Staking Pool,

    • In DIP 17, the dYdX community voted to set the rewards associated with staking $ethDYDX to 0. The 383,562 $ethDYDX previously distirbuted to $ethDYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

• 27.7% (277,295,070 $ethDYDX) to past investors of dYdX Trading Inc.,

• 15.3% (152,704,930 $ethDYDX) to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and

• 7.0% (70,000,000 $ethDYDX) to future employees and consultants of dYdX Trading Inc. or the dYdX Foundation.

Although the community allocation has been established as laid out above, $ethDYDX holders have full control via governance over how the community allocation is used going forward.

FAQs

Can the allocation of $ethDYDX change?

Yes, the dYdX community can change any of the rewards and pools existing at launch. So far, the dYdX community has voted to reduce DYDX emissions in several governance proposals:

In DIP 16, the dYdX community voted in support of reducing trading rewards by 25%. As a result, trading rewards distributed in a given epoch were reduced from 3,835,616 $ethDYDX to 2,876,712 $ethDYDX in Epoch 15. The remaining 958,904 $ethDYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote. In DIP 14, the dYdX community voted to set the rewards associated with staking $USDC to 0. The 383,562 $ethDYDX previously distirbuted to $USDC stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

In DIP 17, the dYdX community voted to set the rewards associated with staking $ethDYDX to 0. The 383,562 $ethDYDX previously distirbuted to $DYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

In DIP 24, the dYdX community voted to reduce Liquidity Provider Rewards by 50% from 1,150,685 $ethDYDX per epoch to 575,343 $ethDYDX per epoch. The excess 575,342 $ethDYDX per epoch will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

In DIP 29, the dYdX community voted to reduce trading and LP rewards by ⅓ from Epoch 30-32 on dYdX v3 to the following values:

a. Reduce rewards to the following values on Nov 21, 2023, 15:00 UTC (start of Epoch 30)

 i. Trading: 1,054,795

 ii. LP: 383,562

b. Reduce rewards to the following values on Dec 19, 2023, 15:00 UTC (start of Epoch 31)

 i.Trading: 527,398

 ii.LP: 191,781

c. Reduce rewards to the following values on Jan 16, 2024, 15:00 UTC (start of Epoch 32)

 i.Trading: 0

 ii.LP: 0

Can new $ethDYDX tokens be minted?

Starting five years after launch, a maximum perpetual inflation rate of 2% per year can be used to increase the supply of $ethDYDX, ensuring the community has the resources to continue contributing to dYdX v3.

Beginning on July 14th, 2026 at 15:00:00 UTC, dYdX governance can decide the maximum supply of new $ethDYDX to be minted, up to the maximum inflation rate of 2% per year at each mint. Only one mint is possible in a given 365 day period. All newly issued $ethDYDX will be allocated by governance and will vest immediately. These newly issued tokens can then be sent to any address specified.

What is the lockup for $ethDYDX issued to investors, existing and future employees, and consultants?

Part of the initial allocation was reserved for:

• past investors of dYdX Trading Inc. (27.7%),

• founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation (15.3%), and

• future employees and consultants of dYdX Trading Inc. or dYdX Foundation (7.0%).

On January 25, 2023, dYdX Foundation announced that dYdX Trading Inc., dYdX Foundation and certain parties to the Warrants to Purchase Tokens signed an amendment (the "Amendment") to, among other things, postpone the initial release date applicable to investor $ethDYDX tokens to December 1, 2023.

The Amendment mentioned above does not alter the staggered unlock that occurs after the Initial Unlock Date, and therefore, pursuant to the Amendment, relevant Tokens will be released from the transfer restriction as follows:

• (i) 30% on December 1, 2023 (the new Initial Unlock Date);

• (ii) 40% in equal monthly installments on the first day of each month from January 1, 2024, to June 1, 2024;

• (iii) 20% in equal monthly installments on the first day of each month from July 1, 2024, to June 1, 2025; and

• (iv) 10% in equal monthly installments on the first day of each month from July 1, 2025, to June 1, 2026.

Note that all of the above dates shall be interpreted to refer to UTC time zone.

Various founders, employees, advisors, and consultants of dYdX Trading Inc. and dYdX Foundation are also subject to the transfer restriction schedule set forth in the Amendment.

All employees and consultants also will be subject to various vesting schedules that could result in them losing their rights to $ethDYDX. No employee’s or consultant’s receipt of $ethDYDX is, or will in the future be, based on providing services related to the dYdX Protocol or other services that may benefit the Protocol. Instead, employees and consultants may receive $ethDYDX for services that benefit only dYdX Trading Inc., dYdX Foundation or another party.

Regardless of any lockup on $ethDYDX, investors and prior employees or consultants of dYdX Trading Inc. or dYdX Foundation may use $ethDYDX to make proposals, delegate votes, or vote on proposals related to the dYdX Protocol. Current employees and consultants of dYdX Trading Inc. or dYdX Foundation will initially not make any proposals or participate in any votes but may do so in the future. Current employees and consultants of dYdX Trading Inc. or dYdX Foundation may delegate votes without attempting to influence voting outcomes.

All investors are required to comply with the transfer restriction enforced through contractual agreements with the dYdX Foundation and dYdX Trading Inc. dYdX Foundation tracks wallet addresses to determine whether any transfers have been made in violation of that restriction.

The dYdX Foundation has expressed its willingness to bring legal action against investors who do not comply with these requirements.

What is the liquid supply curve of $ethDYDX?

On September 8, 2021, the initial transfer restrictions on the token was lifted.

The following chart shows the total liquid supply without inflation: