Links

v4 Community Pool

An overview of the v4 Community Pool
Currently, 24.2% of the total token supply of ethDYDX, which amounts to 241,735,862 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).

How is the Community Treasury replenished on dYdX Chain?

Under the x/distribution module of the Cosmos SDK, the community tax specifies that a fraction of the fees can be reserved for the given chain's community pool.
On August 3, 2023, dYdX Trading announced that the dYdX v4 open source software would initially reflect a community tax of 0%. Notably, the community tax parameter is subject to adjustments by the x/gov module by the dYdX community and can be set to different values at Genesis by any deployer of the dYdX v4 open source software.