The dYdX Foundation recently announced a significant development for its community – the approval of a revenue-sharing proposal. This proposal, which was passed on November 15th, outlines the allocation of 50% of protocol revenue to the MegaVault and 10% to the Treasury SubDAO. The community showed strong support for this proposal, with a turnout of 76.99% and over 155 million DYDX tokens representing 89% of the vote in favor.
The proposal was put forward by research and software engineering solutions provider nethermind on October 22nd, focusing on enhancing DYDX tokenomics and protocol competitiveness. With the implementation of this proposal, dYdX aims to improve DYDX token utility, reduce emissions, and strengthen its position against competitors like Hyperliquid.
One of the key aspects of the proposal is the allocation of 50% of dYdX Chain’s revenue to the MegaVault. The MegaVault allows users to deposit the stablecoin USDC and provide liquidity in exchange for yield. By incentivizing user participation and supporting the decentralized exchange, dYdX hopes to boost liquidity and enhance its competitive advantage.
The community rationale behind allocating 50% of revenue to the MegaVault is to maximize liquidity, which is crucial for the success of dYdX. Balancing high TVL in the MegaVault with returns to stakers is seen as a strategic move to ensure network security and sustainability. Additionally, the 10% of protocol revenue designated for the Treasury subDAO will complement staking rewards, further enhancing the ecosystem.
Since its launch on October 26, 2023, dYdX Chain has achieved impressive results, generating over $232 billion in trading volume and distributing more than $39 million to validators and stakers. These milestones reflect the growing popularity and success of the platform within the decentralized finance (DeFi) space.
Overall, the approval of the revenue-sharing proposal marks a significant step forward for the dYdX community. By allocating a portion of protocol revenue to key ecosystem components like the MegaVault and Treasury subDAO, dYdX aims to drive growth, enhance user incentives, and strengthen its position in the competitive DeFi landscape. With a strong community backing and a clear strategic direction, dYdX is well-positioned for continued success in the future.
