📊Trading Rewards
Overview of the Trading Rewards program.
14.5
%
(144,693,506 $ethDYDX
) of the token supply is allocated to be distributed to users who trade on dYdX v3 based on fees paid. Initially, 25.0%
of the token supply (250,000,000 $ethDYDX
) was allocated for trading rewards.
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 $ethDYDX
Epoch 31: 527,398 $ethDYDX
Epoch 32: 0 $ethDYDX
Note, in DIP 29 the dYdX community voted to migrate the remaining allocation of Trading Rewards to the dYdX Chain for Trading Rewards.
Trading rewards distributed in a given epoch were/will be reduced from 3,835,616 $ethDYDX to:
2,876,712 $ethDYDX in Epoch 15,
1,582,192 $ethDYDX in Epoch 21,
1,054,795 $ethDYDX in Epoch 30,
527,398 $ethDYDX in Epoch 31,
0 $ethDYDX in Epoch 32 onwards.
After Epoch 31, there will not be any trading rewards on dYdX v3. In DIP 29 on dYdX v3 and Proposal 2 on dYdX Chain, the dYdX community voted to credit the remaining amount of unvested $ethDYDX in dYdX v3 Rewards Treasury Vester to the dYdX Chain Rewards Treasury Vester (dydx1wxje320an3karyc6mjw4zghs300dmrjkwn7xtk)
and subsequently distributed as trading rewards on the dYdX Chain, subject to the governance approval on dYdX Chain.
Objectives
Incentivize all traders to use dYdX v3.
Accelerate market liquidity and overall product usage.
Overview
Previously, $ethDYDX was distributed to traders based on fees paid on dYdX v3. $ethDYDX was distributed on a 28-day epoch basis over five years and was not subject to any vesting or lockups.
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 $ethDYDX
Epoch 31: 527,398 $ethDYDX
Epoch 32 and all remaining epochs: 0 $ethDYDX
Term | Definition |
---|---|
r | Reward for a specific trader. |
R | Total reward to be split between all traders in the pool for the epoch. |
f | Total fees paid by a trader in this epoch. |
w | Individual trader score. |
Sum of all trader scores. | |
k | Total number of traders in this epoch. |
In DIP-13, the dYdX Community voted to simplify the formula to be based on total fees paid by a trader in a given epoch.
Claiming Trading Rewards
Earned $ethDYDX tokens via Trading Rewards will be transferable at the end of each epoch. $ethDYDX token holders are required to wait approximately 7 days
(Waiting Period) after the end of the epoch to claim their $ethDYDX tokens.
After the 7-day waiting period, any community member can call the Write
function on theupdateRoot
parameter on the Merkle Distributor contract to make $ethDYDX rewards claimable.
Steps:
On the Merkle Distributor contract page on Etherscan, click on the
Contract
tab, and selectWrite as Proxy.
Click on the
Connect to Web3
button and connect your Web3 Wallet.
3. Scroll down to the updateRoot
parameter, and click on the Write
button.
This transaction would require some ETH for gas fees, and the transaction will fail if:
The 7-day waiting period is still in effect, or
A community member has already successfully called the
updateRoot
parameter on the Merkle Distributor contract.
Once the transaction is finalized, traders can claim their Trading Rewards here. Users will need to click on Claim
, sign a transaction, and pay gas fees to claim $ethDYDX.
FAQ
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