🧮DYDX Token Allocation

An overview of the $DYDX token allocation.

Current Allocations

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

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

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

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

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

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

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

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

• 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.

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

Initial Allocations and Changes

The initial five-year allocation of the total supply of $DYDX was as laid out below, it was then followed by several governance proposals that changed the initial allocation:

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

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

  • 25.0% (250,000,000 $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.

    • 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 $DYDX

      • Epoch 31: 527,398 $DYDX

      • Epoch 32: 0 $DYDX

  • 7.5% (75,000,000 $DYDX) to past users who complete certain trading milestones on the 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),

    • In DIP 24, the dYdX community voted to reduce Liquidity Provider rewards by 50% from 1,150,685 $DYDX per epoch to 575,343 $DYDX per epoch. The excess 575,342 $DYDX 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 $DYDX

      • Epoch 31: 191,781 $DYDX

      • Epoch 32: 0 $DYDX

  • 2.5% (25,000,000 $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.

  • 2.5% (25,000,000 $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 dYdX Foundation.

Liquid Supply Curve of $DYDX

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

The following chart shows the total liquid supply of DYDX over time:

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 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 $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.

• In DIP 24, the dYdX community voted to reduce Liquidity Provider Rewards by 50% from 1,150,685 $DYDX per epoch to 575,343 $DYDX per epoch. The excess 575,342 $DYDX 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

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

Part of the initial allocation of $DYDX tokens was reserved for past investors of dYdX Trading Inc., founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and future employees and consultants of dYdX Trading Inc. or dYdX Foundation.

On January 25, 2023, dYdX Foundation announced an Amendment to postpone the initial release date of investor $DYDX tokens to December 1, 2023. The Amendment did not change the staggered unlock schedule after the Initial Unlock Date.

As per the Amendment, tokens will be released from transfer restrictions as follows:

• 30% on December 1, 2023;

• 40% in equal monthly installments from January 1, 2024, to June 1, 2024;

• 20% in equal monthly installments from July 1, 2024, to June 1, 2025; and

• 10% in equal monthly installments 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 $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.