dYdX Community Approves Proposal to Implement Revenue-Sharing Mechanism

The dYdX Foundation has announced that the community has approved a key proposal to implement a revenue-sharing mechanism.

The dYdX Foundation has announced that the community has approved a key proposal to implement a revenue-sharing mechanism.

The proposal, passed on Nov. 15, allocates 50% of protocol revenue to the MegaVault and 10% to the Treasury SubDAO.

According to the dYdX Foundation, the expedited vote saw a turnout of 76.99%, with over 155 million DYDX representing 89% of the vote in favor.

dYdX’s holders voted on the proposal a few weeks after research and software engineering solutions provider Nethermind published it in the community forum on Oct. 22.

The proposal aimed to address several aspects of the ecosystem, including DYDX tokenomics and the protocol’s competitiveness.

Its implementation will reportedly enhance DYDX token utility, reduce emissions and improve the protocol’s standing against competitors like Hyperliquid.

50% of revenue to be allocated to MegaVault

The proposal outlines that 50% of dYdX Chain’s revenue will be allocated to the MegaVault, a feature that enables users to deposit the stablecoin USDC and provide liquidity in exchange for yield.

This allocation is intended to incentivize user participation and support the perpetual decentralized exchange when the protocol launches.

“We are proposing to route 50% of protocol revenue to the MegaVault because liquidity is a fundamental component of dYdX’s competitive advantage, and the TVL of the MegaVault should be as high as possible, while also balancing returns to stakers in exchange for the provision of network security,” a section of the proposal reads.

While 50% of the protocol’s revenue is a substantial amount, the community highlights that the DEX will benefit if it can maximize liquidity.

The 10% of protocol revenue earmarked for the Treasury subDAO will be used to supplement staking rewards.

The dYdX Chain, which went live on Oct. 26, 2023, has generated over $232 billion in trading volume to date.

In the same period, over $39 million has been distributed to validators and stakers.