As a seasoned researcher with a keen eye for decentralized finance (DeFi) developments, I find this recent decision by the dYdX Foundation to be a strategic move that could significantly boost user participation and competitiveness within the DeFi landscape. The 50% allocation of protocol revenue to the MegaVault is particularly intriguing, as it underscores the importance of liquidity in any decentralized exchange.
According to recent announcements, the dYdX community has given their approval for a significant plan to establish a revenue-distribution system.
The decision made on November 15th distributes half of the protocol’s earnings to MegaVault and a tenth to Treasury SubDAO. As reported by dYdX Foundation, an accelerated voting process drew a participation rate of 76.99%, with more than 155 million DYDX tokens (representing 89% of the total vote) in support.
Over the past few weeks, I’ve delved into a proposal that was initially presented by the research and software engineering solutions provider, Nethermind, within the DYdX community forum on October 22nd. The focus of this proposition encompasses significant aspects of the DYDX tokenomics and the protocol’s competitiveness within the ecosystem. Now, I eagerly await the results of the recent vote cast by the holders.
Implementing this will boost the functionality of the DYDX token, decrease its emission rate, and position it favorably in competition with protocols like Hyperliadic.
50% of revenue to go to MegaVault
According to the plan, half of the earnings from the dYdX Chain will be directed towards MegaVault – a tool enabling users to deposit USDC stablecoin and offer liquidity for rewards. This distribution aims to encourage user interaction and bolster the operation of the ongoing decentralized exchange once the protocol is live.
The proposal suggests directing half of the protocol’s earnings towards the MegaVault, as liquidity is crucial for dYdX’s edge in competition. It’s important that the value locked (TVL) in the MegaVault is maximized, while at the same time ensuring fair returns to those who secure the network by staking.
Half of the protocol’s earnings is considered substantial by the community, as they believe that the DEX can gain more if it optimizes its liquidity. Meanwhile, the 10% of protocol revenue allocated for the Treasury subDAO will serve to enhance staking rewards.
On October 26, 2023, the dYdX Chain commenced operation, and since then, it has facilitated over $232 billion in trade transactions. Additionally, approximately $39 million has been allocated to validators and stakers as rewards.
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2024-11-15 20:50