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), andDIP 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.
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