The popular on-chain trading platform dYdX has finally released a governance token, according to its Foundation Website. The dydx token is now live and will become transferable from September 8th 2021.
In February of this year, the protocol also announced a partnership with Starkware to bring their trading to layer 2. The protocol will allocate a portion of the initial supply to its past users related to earlier governance token launches. It will meet certain conditions. In this case, 7.5% of the supply will go to previous dYdX users. Token allocations are to take place over a five-year period, starting on August 3rd, 2021.
Also notable are what appear to be geographic restrictions on the token, per the site. “DYDX is not available in the United States or other prohibited jurisdictions. If you are a resident of, or incorporated or headquartered in, the United States of America or another prohibited jurisdiction, then you are not permitted to receive a distribution of, or transact in, DYDX.”
The distribution of 7.5% of the total tokens will take place during the next 28 days. Users with a large trade volume on the decentralized exchange are eligible for more tokens. Anyone who deposited crypto before 26th July receives some amount of DYDX executes at least one trade on an exchange in August.
About DYDX governance token
DYDX is a governance token that permits the protocol’s community to truly own and govern the dydx Layer 2 Protocol. By allowing share control dydx aligns incentives between traders and liquidity providers and partners of layer 2 protocols. DYDX are two staking pools designed to help liquidity and safety on the dYdX Layer 2 protocol.
A safety staking pool distributes more of the governance token to users who stake governance tokens. Dydx protocol will utilize the safety pool to generate a safety net in case of security failure. This pool will go live as DYDX become transferrable at approximately September 8th, 2021.
“DYDX enables a robust ecosystem around the governance, rewards, and staking- each designed to drive future growth and decentralized of dYdX, resulting in a better experience for users,” the team wrote.
An extra 5% of the entire provide will probably be used to fund an R&D treasury “to be allocated on an ongoing foundation via contributor grants, group initiatives, liquidity mining, and various applications,” according to the foundation website.