dYdX Finalizes Proposal to Cut Trading Rewards – Token Hits New High
dYdX, the pioneering decentralized derivatives exchange, has officially finalized its proposal to reduce trading rewards.
dYdX Finalizes Proposal to Cut Trading Rewards – Token Hits New High
The proposal aimed to lower the trading rewards from 2.88 million DYDX tokens to 1.59 million (a 45% reduction). The goal of this initiative is to bolster the protocol's reward treasury and curb annual token inflation.
The proposal states:
“Under the V4 Vanguard Post framework, we propose reducing trading rewards by approximately 45%. Given the current market downturn, we believe that the trading rewards are still excessively high and are the largest contributor to annual token inflation.”
The voting results show overwhelming support, with over 25 million votes in favor compared to 5 million against. The organization will continue voting to determine the future use of the remaining tokens.
Voting Results for Trading Reward Reduction Proposal on the Forum
“The most crucial point is that the retained DYDX will significantly impact the sustainable and controlled funding of V4 initiatives by the DAO.”
Following the governance vote, the DYDX token, associated with the decentralized exchange of the same name, surged nearly 30%. Since the beginning of the year, especially after the project decided to postpone the token vesting unlock to December, DYDX has experienced an impressive 121% growth. As of the time of writing, the token is trading around $2.38, about 6% below its 24-hour high.
1D Chart of DYDX/USDT on Binance as of 09:10 AM on March 14, 2023
See Also: dYdX Users Transacted $466 Billion in 2022
