The DYDX token enables the management of the Layer 2 protocol by the dYdX community. By sharing the protocol, DYDX enables traders, liquidity providers, and dYdX partners to collaborate on an advanced protocol. DYDX owners can propose and vote on protocol changes, receive staking incentives, and benefit from lower transaction fees.
DYDX distribution pools aim to increase the liquidity and security of the protocol. Incentives for trading, providing liquidity, and incentives for early adoption contribute to the growth and popularity of dYdX.
How Does The DYDX Platform Work? How Does It Work?
The dYdX platform allows users to register and trade with their own wallet, which they can borrow, leverage, and use to create futures. Smart contracts organize the network, which runs on the Ethereum blockchain. The system is decentralized and supports margin trading.
What Services Does DYDX Offer?
DYDX was launched in a total number of one billion units and will be available for five years starting August 3, 2021. Currently, 55,680,000 units of DYDX are available. During the first five years, the total inventory of DYDX will be divided as follows.
50% will be given away to the company (500,000,000 DYDX).
Existing shareholders will receive 27.73% of the Company (277,295,040 DYDX).
15.27% (152,704,930 DYDX) will be distributed to the founders or the foundation, employees, consultants and advisors of dYdX Trading.
7% (70,000,000 DYDX) to future employees and consultants of dYdX Trading or the dYdX Foundation.
Starting five years after launch, the government may apply an inflation rate of no more than 2% per year to expand the supply of DYDX and ensure that the company has sufficient cash to support the growth and expansion of the protocol. The annual inflation rate was set by the government at 2%.
While the community allocation is set as described above, DYDX holders have full control over how the government uses the community allocation going forward.
Is The New DYDX Token Open For Mining?
Starting five years after launch, a maximum inflation rate of 2% per year will be used to increase the supply of DYDX and ensure that the community has the resources to continue contributing to the dYdX Layer 2 protocol.
At 3:00 p.m. on July 14, 2026, dYdX management may determine the maximum number of new tokens that can be issued while maintaining an inflation rate of 2% per year. Only one mintage can take place during a 365-day period. Management will distribute all newly minted coins.
