🏦Community Treasury

An overview of the dYdX Chain Community Treasury.

Overview

The Community Treasury is a community-controlled module account on dYdX Chain. DYDX will vest to the Community Treasury on a continuous basis until August 3, 2026. Any dYdX community member satisfying the min_initial_deposit_ratio can submit a Community Spending proposal to spend DYDX in the Community Treasury.

The Community Treasury was created with the following objectives:

• Fund programs and initiatives that drive the growth of dYdX.

• Develop grant programs to fund community hackathons, analytics dashboards, swag, third-party tools, translations, and other projects.

• Develop a best-in-class governance system and incentivize robust governance.

Module Accounts

Name	Address
community_treasury	dydx15ztc7xy42tn2ukkc0qjthkucw9ac63pgp70urn
community_vester	dydx1wxje320an3karyc6mjw4zghs300dmrjkwn7xtk

Vest Module

Field name	vester_account	treasury_account	denom	start_time	end_time
Description	The account to vest tokens from	The account to vest tokens to	The token that is vested	The start time of vesting	The end time of vesting
Value	community_vester	community_treasury	adydx	2021-08-03T15:00:00Z	2026-08-03T15:00:00Z
Account	dydx1wxje320an3karyc6mjw4zghs300dmrjkwn7xtk	dydx15ztc7xy42tn2ukkc0qjthkucw9ac63pgp70urn

Community Treasury

Currently, 26.1% of the total token supply of ethDYDX, which amounts to 261,133,225 ethDYDX, is allocated to the Community Treasury. This allocation is designed to sustainably support contributor grants, community initiatives, liquidity mining, and other assorted 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 14 - set the rewards for staking USDC to 0 (383,562 ethDYDX per epoch),

• DIP 16 - reduce trading rewards by 25% (958,904 ethDYDX per epoch),

• DIP 17 - set the rewards for staking $DYDX to 0 (383,562 ethDYDX per epoch),

• DIP 20 - further reduce trading rewards by 45% (1,294,520 ethDYDX per epoch), and

• DIP 24 - reduce Liquidity Provider Rewards by 50% (575,342 ethDYDX per epoch).

• DIP 29 - 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

  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.

In DIP 29 on dYdX v3, the dYdX community also voted to migrate 40,703,630 vested ethDYDX from the Rewards Treasury and 39,788,640 vested ethDYDX from the Community Treasury to the dYdX Chain Community Treasury. In addition to the 80,492,270 DYDX from the dYdX v3 Rewards Treasury and Community Treasury, DYDX vests every second from the community_vester to the community_treasury.

Community Vester

In DIP 2 on the dYdX Chain, the dYdX community voted to credit the dYdX Community Vester with 172,762,268.210688518 unvested DYDX tokens based on the balance of the dYdX v3 Community Treasury Vester and the dYdX v3 Rewards Treasury Vester, less the DYDX that was sent to the dYdX Chain Rewards Vester for Trading Rewards.

FAQ

How to Submit a Community Spending Proposal?

Any dYdX community member with enough unstaked DYDX tokens to satisfy the min_initial_deposit_ratio may submit a Community Spending proposal on dYdX Chain. A governance vote will be required to spend any DYDX from the Community Treasury.

To submit a proposal, please follow the steps laid out on the Proposal Lifecycle. The main inputs for a Community Spending Proposal are (1) the number of DYDX and (2) the recipient address.

How does DYDX vest from the Community Vester to the Community Treasury?

The Vest Module allows the vesting process to happen on the dYdX Chain. The module is responsible for determining the rate of tokens that vest from Vester Accounts to other accounts such as a community_treasury and a rewards_treasury. The rate of token transfers is linear with respect to time. Thus, block timestamps are used to vest tokens.

The dYdX Community through a governance vote has the ability to create, update, or delete vest_entries through a governance vote.

Based on the start_time and end_time, DYDX will vest from the Community Vester to the Community Treasury at approximately ~2.04 DYDX per second.

What types of proposals can be submitted to the Community Treasury?

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 Chain's ecosystem growth.