🤝Community Treasury

An overview of the community treasury.

26.1% (261,133,225 $ethDYDX) of the token supply is allocated to the community treasury for the dYdX community to use on an ongoing basis for contributor grants, community initiatives, liquidity mining, and other programs. Initially,5.0% of the token supply (50,000,000 $ethDYDX) was allocated to the community treasury, and 766,703 $ethDYDX vested 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.

On November 18, 2023, the dYdX community voted to bridge the ethDYDX balance accrued in the Community Treasury from Ethereum to dYdX Chain. Once bridged, the DYDX can be used by the dYdX community with a governance vote on dYdX Chain.

Objectives

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

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

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

Overview

The community treasury will retain $ethDYDX to use as $ethDYDX holders decide, whether it be for grants, new liquidity mining pools, or any other program. $ethDYDX will vest to the community treasury on a continuous basis over the course of five years. A governance vote will be required to spend any ethDYDX from the community treasury.

If, after five years, governance decides to enact perpetual inflation (at a maximum annual inflation of 2%), any newly minted $ethDYDX will be available to the community treasury.

FAQ

How does $ethDYDX vest in the Community Treasury?

Previously, the Community Treasury Vester (see details here) vested 0.3169242627 $ethDYDX to the Community Treasury every second. Once $ethDYDX has been vested, calling the claim function on the Community Treasury Vester would transfer the vested $ethDYDX to the Community Treasury. Any dYdX community member could call the claim function on Etherscan here (which would require some ETH for gas fees) to move the vested $ethDYDX from the Community Treasury Vester to the Community Treasury.

Please refer to the dYdX Foundation’s Terms of Use for further details on the control of the community treasury by the dYdX community.