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Allocations

Allocations for the $DYDX token.
Allocations
A total of 1,000,000,000 $DYDX have been minted, and will become accessible over five (5) years, starting on August 3rd, 2021, at 15:00:00 UTC. The initial five-year allocation of the total supply of $DYDX was as follows:
  • 50.0% (500,000,000 $DYDX) to the community as follows:
  • 27.7% (277,295,070 $DYDX) to past investors of dYdX Trading Inc.,
  • 15.3% (152,704,930 $DYDX) to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and
  • 7.0% (70,000,000 $DYDX) to future employees and consultants of dYdX Trading Inc. or dYdX Foundation.
Since the launch of $DYDX, there have been several governance proposals that have resulted in changes to the initial allocation. Currently, the allocation includes:
  • 50.0% (500,000,000 $DYDX) to the community as follows:
    • 14.5% (144,693,506 $DYDX) 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 $DYDX. (958,904 $DYDX from DIP 16 and 1,294,520 $DYDX from DIP 20). The 2.3M $DYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.
    • 5.0% (50,309,197 $DYDX) to past users who complete certain trading milestones on the dYdX Layer 2 Protocol (Retroactive Mining Rewards),
      • After Epoch 0, 24,690,803 unclaimed $DYDX from the Retroactive Mining rewards program were transferred to the Community Treasury.
    • 7.5% (75,000,000 $DYDX) based on the Liquidity Provider Rewards Formula(s),
    • 21.9% (219,194,788 $DYDX) to the Community Treasury and Rewards Treasury,
    • 0.6% (5,753,430 $DYDX) 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 $DYDX 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% (5,049,079 $DYDX) to users staking $DYDX to a Safety Staking Pool,
      • In DIP 17, the dYdX community voted to set the rewards associated with staking $DYDX to 0. The 383,562 $DYDX previously distirbuted to $DYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.
  • 27.7% (277,295,070 DYDX) to past investors of dYdX Trading Inc.,
  • 15.3% (152,704,930 DYDX) to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and
  • 7.0% (70,000,000 DYDX) to future employees and consultants of dYdX Trading Inc. or the dYdX Foundation.
Starting five years after launch, a maximum perpetual inflation rate of 2% per year may be utilized by governance to increase the supply of $DYDX, ensuring the community has the resources to continue the development and growth of the Protocol. Inflation must be enacted via a governance proposal and is capped at 2% per year.
Although the community allocation has been established as laid out above, $DYDX holders have full control via governance over how the community allocation is used going forward.

FAQs

Can the allocation of $DYDX 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 trading rewards by 25%, set rewards for staking $USDC to 0, and set rewards for staking $DYDX to 0.
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 $DYDX to 2,876,712 $DYDX in Epoch 15. The remaining 958,904 $DYDX 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 $DYDX 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 $DYDX to 0. The 383,562 $DYDX previously distirbuted to DYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

Can new $DYDX 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 $DYDX, ensuring the community has the resources to continue contributing to the dYdX Layer 2 Protocol.
Beginning on July 14th, 2026 at 15:00:00 UTC, dYdX governance can decide the maximum supply of new $DYDX 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 $DYDX 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 $DYDX 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 $DYDX 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.
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 $DYDX. No employee’s or consultant’s receipt of $DYDX 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 $DYDX for services that benefit only dYdX Trading Inc., dYdX Foundation or another party.
Regardless of any lockup on $DYDX, investors and prior employees or consultants of dYdX Trading Inc. or dYdX Foundation may use $DYDX 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 $DYDX?

On September 8, 2021, 8 days after the end of Epoch 0, the initial transfer restrictions on the token was lifted.
The following chart shows the total liquid supply without inflation:
The following chart shows the total liquid supply with inflation: