dYdX Launches Governance Token, But the Airdrop Won’t Cover US-based Users
The decentralized trading platform also announced the launch of the dYdX Foundation “to fully decentralize” the Protocol and remove single points of failure.
Decentralized finance (DeFi) project dYdX announced the launch of dYdX Foundation, a Zug-based independent foundation, which it describes as the first important step in its journey towards complete decentralization.
The same day, the trading platform announced that the dYdX Foundation is launching the governance token DYDX, which “powers a community-led ecosystem of governance, staking, and rewards.”
The Foundation has minted a total of 1 billion DYDX tokens which will become accessible over five years starting on August 3rd.
50% of this is allocated to the community, out of which — 25% goes to its users who trade on Layer 2 based on fees and open interest, 7.5% to past users who complete a certain trading milestone on Layer 2, another 7.5% to LPs, 5% to a community treasury, and 2.5% goes to users staking USDC and DYDX each.
dYdX’s past investors will be getting a 27.73% share while the project’s founders, employees, advisors, and consultants get 15.27%, and the remaining 7% is allocated to future employees of dYdX Trading or Foundation.
All DYDX issued to stockholders, directors, officers, employees, and consultants are subject to various vesting schedules — 30% will unlock in 18 months, 40% will unlock equally from month 19 through month 24th, 20% from month 25 through month 36, and the remaining 10% will unlock equally from month 37 through month 48.
The tokens will be airdropped over this month which will become transferable on Sept. 8. However, DYDX is not available to its users from the US and other prohibited jurisdictions.
“The launch of the dYdX Layer 2 protocol came with a new focus on global growth outside of the United States,” noted the team.
In order to be eligible for retroactive rewards, users must have traded on dYdX protocols (perpetual, margin, spot) on Layer 1 or Layer 2 in the past or deposited funds into its borrow/supply pools and have hit a certain threshold.
The team also announced trading fee discounts based on DYDX holdings.
Meanwhile, the Foundation will help the project in research and development activities, promote and educate the public about it, and engage with third parties for the benefit of the ecosystem.
It will also issue, receive, spend, and hold digital assets (no speculative trading activities) and acquire, hold or grant trademarks, copyrights, and other intellectual property (IP) rights or licenses.
Through this Foundation, the project aims “to fully decentralize the dYdX Protocol, removing single points of failure and creating a self-sustaining protocol governed by a community of users.”