What is Dydx Ethdydx

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About dYdX (ethDYDX)

Key Points:

dYdX is a governance token that allows the community to govern the dYdX Layer 2 Protocol built on Ethereum.
ethDYDX is currently undergoing a migration from Ethereum to the dYdX Chain.
The total supply of ethDYDX is 1,000,000,000, and it was minted on August 3rd, 2021.
The allocation of ethDYDX is as follows:
- 27.7% to Investors
- 14.5% to User Trading Rewards
- 15

About dYdX (ethDYDX): A Decentralized Perpetuals Exchange

Introducing dYdX (DYDX): A Revolutionary Decentralized Exchange

Ethereum-based DYDX ($ethDYDX) is a governance token that empowers the dYdX community to exercise true governance over the dYdX Layer 2 Protocol built on Ethereum, also known as “dYdX v3”. Currently, ethDYDX is undergoing a migration from Ethereum to the dYdX Chain. For more information, please refer to this resource. To migrate ethDYDX to the dYdX Chain’s DYDX, thereby enabling staking, security, and governance of the dYdX Chain, kindly follow the step-by-step bridging guide available here.

For an in-depth exploration of the innovative token utility for dYdX Chain’s DYDX, please refer to our blog post, available

here

.

ethDYDX (dYdX) serves as the governance token for the Ethereum-based layer 2 protocol. By facilitating shared control of dYdX v3, ethDYDX empowers traders, liquidity providers, and dYdX partners to collaborate towards a more advanced and refined dYdX v3 ecosystem.

Built atop StarkWare’s StarkEx scalability engine, the layer 2 solution empowers the trading of cross-margined perpetuals on the platform, thereby unlocking a multitude of benefits. This innovative scaling solution enables dYdX to significantly boost transaction speed, eradicate gas costs, reduce trading fees, and lower the minimum trade sizes on the protocol, thereby fostering a more efficient and cost-effective trading experience.

A total of 1,000,000,000 ethDYDX tokens have been minted, with a staggered release schedule that commenced on August 3rd, 2021, at 15:00:00 UTC, unfolding over a five-year period.

The Visionaries Behind dYdX: Meet the Founders

Antonio Juliano, a seasoned programmer with a profound background in blockchain technology, is the visionary founder and CEO of dYdX Trading Inc. His foray into the crypto sphere began in 2015, when he joined Coinbase, a prominent cryptocurrency exchange platform, as a software engineer. A distinguished alumnus of Princeton University, where he earned a degree in computer science, Antonio Juliano embarked on his entrepreneurial venture, founding dYdX in early 2017.

Unveiling the Unparalleled dYdX Advantage

dYdX Layer 2 bolsters the network’s scalability by leveraging a form of zero-knowledge rollup, namely zkSTARKS. This innovative technology receives proofs while validating a batch of transactions off the chain. These proofs are subsequently transmitted back to the blockchain, where they are rigorously verified by a smart contract. By harnessing zkSTARKS, it is possible to offload computationally expensive tasks from the mainnet without compromising decentralization.

The Allocation of ethDYDX: A Breakdown

A total of 1,000,000,000 ethDYDX tokens have been minted, with a staggered release schedule that commenced on August 3rd, 2021, at 15:00:00 UTC, unfolding over a five-year period.

The initial allocation of the total supply of ethDYDX was distributed over a five-year period as follows:

A substantial 27.7% allocation is designated for Investors
User Trading Rewards are allocated a significant 14.5% share
A notable 15.3% allocation is reserved for Employees and Consultants of dYdX Trading or Foundation
Retroactive Rewards are allocated a 5.0% share
Liquidity Provider Rewards receive a 5.2% allocation
A 7.0% allocation is set aside for Future Employees & Consultants of dYdX
The Community Treasury is allocated a substantial 24.2% share
A modest 0.6% allocation is designated for the Liquidity Staking Pool
The Safety Staking Pool receives a 0.5% allocation

Following the inception of ethDYDX, a series of governance proposals have led to adjustments to the initial allocation. As of the commencement of Epoch 31 (December 19, 2023), the revised allocation is visually represented in the pie chart below.

The revised distribution of ethDYDX tokens, effective as of the commencement of Epoch 31 (December 31, 2023), is as follows:

Ensuring the Integrity of the dYdX Network: A Multilayered Security Framework

DYDX is an ERC-20 token deployed on the Ethereum mainnet, leveraging the robust infrastructure of the Ethereum blockchain. Notably, dYdX’s layer 2 scaling solution is built upon StarkWare’s innovative ZK-STARKS technology, which relies on the Ethereum blockchain to verify transaction proofs, ensuring a secure and efficient transaction validation process.

When Will DYDX Trading Commence?

The DYDX token officially debuted in the market in September 2021, marking its inaugural availability for purchase.

Where to Acquire DYDX: A Comprehensive Guide

DYDX is currently available for purchase on a diverse range of prominent exchanges, including Binance, Huobi Global, KuCoin, Gate.io, Kraken, Poloniex, Uniswap (V3), OKEx, LBank, Sushiswap, Crypto.com Exchange, 0x Protocol, XT.COM, BitZ, WhiteBIT, 1inch Exchange, WOO Network, CoinDCX, Deepcoin, Cryptology, BKEX, DigiFinex, Pionex, BW.com, BitMart, AEX, ZBG, MEXC, BiONE, Bibox, Hoo, Hotbit, Decoin, Bitrue, HitBTC, Tokocrypto, Mandala Exchange, CoinW, BigONE, ZT, AOFEX, WBF Exchange, CoinBene, and Bitget.

New to the world of cryptocurrency? Explore our comprehensive guide on entering the market and purchasing BTC, DYDX, or any other token at CoinMarketCap’s educational hub, Alexandria.

Seamless Transition to the dYdX Chain

On June 22, 2022, dYdX Trading Inc. (“dYdX Trading”) unveiled the next evolution of the dYdX protocol – the open-source dYdX Chain software. As a proof-of-stake blockchain network, the dYdX Chain necessitates a Layer 1 (“L1”) protocol token for staking to validators, ensuring the chain’s security and facilitating network governance. Holders of the L1 token can utilize their tokens to operate a validator or stake them to a validator, thereby participating in the network’s security and governance. The wethDYDX Smart Contract facilitates the seamless migration of ethDYDX from Ethereum to the dYdX Chain. Upon interaction, the wethDYDX Smart Contract executes the following functions in a fully permissionless and automated manner: it receives and permanently locks the ethDYDX tokens sent by the user to the wethDYDX Smart Contract; issues a wrapped version of the Ethereum-based DYDX token (“wethDYDX”) to the user on a 1:1 proportional basis on Ethereum; and enables dYdX Chain validators to access and process the information in the wethDYDX Smart Contract, thereby distributing corresponding DYDX to users once the ethDYDX is permanently locked and confirmed. For more information on the migration of ethDYDX from Ethereum to the dYdX Chain, please refer to this resource.

– 27.7% (277,295,070 $ethDYDX) allocated to previous investors of dYdX Trading Inc.

– 15.3% (152,704,930 $ethDYDX) allocated to the founding team, employees, advisors, and strategic partners.

Advisors affiliated with dYdX Trading Inc. or the dYdX Foundation

– 7.0% (70,000,000 $ethDYDX) allocated to future talent acquisition and consultancy services for dYdX

Trading Inc. or the esteemed dYdX Foundation

– 14.5% (144,693,506 $ethDYDX) Derived from the Trading Rewards Formula

In DIP 16 and DIP 20, the dYdX community voted to reduce trading rewards by a total of 2.3 million $ethDYDX (comprising 958,904 $ethDYDX from DIP 16 and 1,294,520 $ethDYDX from DIP 20). The 2.3 million $ethDYDX will accrue in the Rewards Treasury, awaiting utilization by the dYdX community via a governance vote.
In DIP 29, the dYdX community voted to implement a one-third reduction in trading rewards from Epoch 30-32 on dYdX v3, with the following revised values:
Epoch 30: 1,054,795 $ethDYDX
Epoch 31: 527,398 $ethDYDX
Epoch 32: 0 $ethDYDX

A substantial allocation of 5.0% (50,309,197 $ethDYDX) is designated for Retroactive Mining Rewards

Subsequent to Epoch 0, a total of 24,690,803 unclaimed $ethDYDX tokens, originating from the Retroactive Mining rewards program, were formally transferred to the Community Treasury.

– 3.2% (31,643,838 $ethDYDX) Derived from Liquidity Provider Incentives

Formulations

In DIP 24, the dYdX community voted to implement a 50% reduction in Liquidity Provider Rewards, decreasing the allocation from 1,150,685 $ethDYDX per epoch to 575,343 $ethDYDX per epoch. The resulting surplus of 575,342 $ethDYDX per epoch will be accrued in the Rewards Treasury, pending utilization by the dYdX community via a governance vote.
In DIP 29, the dYdX community voted to introduce a phased reduction in Liquidity Provider rewards, effective from Epoch 30-32 on dYdX v3, with the following revised allocations:
Epoch 30: 383,562 $ethDYDX
Epoch 31: 191,781 $ethDYDX
Epoch 32: 0 $ethDYDX

A substantial allocation of 26.1% (261,133,225 $ethDYDX) is designated for the Community Treasury

– 0.6% (5,779,608 $ethDYDX) allocated to users participating in Liquidity Staking with $USDC

Miner’s Paradise

In accordance with DIP 14, the dYdX community has collectively decided to discontinue rewards for staking $USDC, thereby redirecting the 383,562 $ethDYDX tokens, previously allocated to $USDC stakers, to the Rewards Treasury, where they will be held pending a governance vote for future utilization by the dYdX community.

-0.5% (5,289,934 $ethDYDX) allocated to users participating in Safety Staking with $ethDYDX