DYDX Tokens: The Ultimate Guide To Obtaining Them Like A Pro

February 26, 2023 - Around 7 mins mins to read

Key Points:

DYDX tokens: how to get them.
Stake, provide liquidity, or buy on exchanges to get DYDX.
Holders can participate in the governance process of the dYdX platform.
Guide offers detailed steps for obtaining DYDX.
DYDX aims to drive growth and decentralization of dYdX with its tokenomics.

Previously, Coincu provided in-depth information about the DYDX token and the dYdX exchange, highlighting its advanced trading platform that features low fees, high capital efficiency, and seamless integration with other DeFi protocols. Building on that, Coincu has detailed a comprehensive guide on acquiring DYDX tokens, which is based on that.

As reported by the previous press, approximately 64,000 valid users were eligible for the retroactive airdrop of DYDX tokens, with a total distribution of 75,000,000 tokens. The average airdrop per user would be approximately 1,171 DYDX tokens. This equates to an average airdrop value of over $3,000 per user at the time of writing.

DYDX Tokens: The Ultimate Guide To Obtaining Them Like A Pro

Overall, the DYDX token offers its holders governance rights over the dYdX Layer 2 Protocol, allowing them to work together to improve the protocol. It also enables staking pools and rewards programs for trading, liquidity provision, and past usage to drive growth and decentralization.

DYDX holders can vote on proposals related to the development and improvement of the platform, influencing its future development and creating a more decentralized and community-driven ecosystem where decisions are made transparently and democratically.

DYDX Key Metrics

Token Name: dYdX Token.
Ticker: DYDX.
Blockchain: Ethereum.
Token Standard: ERC20.
Contract: 0x92d6c1e31e14520e676a687f0a93788b716beff5.
Token Type: Governance.
Max Supply: 1,000,000,000 DYDX.
Circulating Supply: 151,641,877 at the time of writing

DYDX Token Allocation

50.0% (500,000,000 $DYDX) to the community as follows:

20.2% (201,883,560 $DYDX) based on the Trading Rewards Formula. In DIP 16, the dYdX community voted in support of reducing trading rewards by 25%. As a result, trading rewards distributed in a given epoch were reduced from 3,835,616 $DYDX to 2,876,712 DYDX in Epoch 15. The remaining 958,904 $DYDX will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.
5.0% (50,309,197 $DYDX) to past users who complete certain trading milestones on the dYdX Layer 2 Protocol (Retroactive Mining Rewards). After Epoch 0, 24,690,803 unclaimed $DYDX from the Retroactive Mining rewards program were transferred to the Community Treasury.
7.5% (75,000,000 $DYDX) based on the Liquidity Provider Rewards Formula(s),
16.2% (162,004,734 $DYDX) to the Community Treasury and Rewards Treasury,
0.6% (5,753,430 $DYDX) to users staking $USDC to a Liquidity Staking Pool. In DIP 14, the dYdX community voted to set the rewards associated with staking $USDC to 0. The 383,562 $DYDX previously distributed to USDC stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.
0.5% (5,049,079 $DYDX) to users staking $DYDX to a Safety Staking Pool. In DIP 17, the dYdX community voted to set the rewards associated with staking $DYDX to 0. The 383,562 $DYDX previously distributed to $DYDX stakers will accrue in the Rewards Treasury and can be used by the dYdX community with a governance vote.

27.7% (277,295,070 DYDX) to past investors of dYdX Trading Inc.,

15.3% (152,704,930 DYDX) to founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation, and

7.0% (70,000,000 DYDX) to future employees and consultants of dYdX Trading Inc. or the dYdX Foundation.

DYDX Token Use Case

DYDX serves as the utility token of the dYdX platform with multiple functions, including governance, incentives, fee discounts, and staking. DYDX holders can participate in the platform’s decision-making process as a governance token by voting on protocol proposals.

Additionally, 25% of the token supply, equivalent to 250,000,000 DYDX, will be distributed to traders contributing trading volume on the platform as incentives. Holders of DYDX tokens will also receive fee discounts on trades, similar to BNB on Binance Exchange, based on their token holdings. Furthermore, DYDX token holders can stake their tokens in the Safety Module pool to earn additional rewards.

How To Get DYDX Token

Retroactive Mining Rewards

Retroactive Mining Rewards is an incentive program of DYDX that rewards early active users of layer-1/layer-2 dYdX products. A total of 75,000,000 DYDX tokens are distributed to eligible users based on their activity according to a snapshot taken on July 26th, 2021, at 0:00 UTC. The program consists of 5 tiers, each with different claiming requirements, which are detailed in the following table:

Trading Rewards

20.2% of the total DYDX token supply, equivalent to 201,883,560 DYDX tokens, is allocated for distribution to users based on the fees paid for trading on the dYdX Layer 2 Protocol.

Initially, 25% of the total token supply was allocated for trading rewards, but in DIP 16, the dYdX community voted in favor of reducing trading rewards by 25%. As a result, the allocation for trading rewards decreased from 25% to 20.2%. In Epoch 15, the amount of DYDX tokens distributed as trading rewards in a given epoch decreased from 3,835,616 DYDX to 2,876,712 DYDX.

The $DYDX token will be rewarded to traders based on the fees they pay on the dYdX Layer 2 Protocol, with a distribution schedule of 2,876,712 $DYDX per 28-day epoch over five years.

The tokens will not be subject to any vesting or lockup periods. As a result of a community vote, the trading rewards were reduced by 25% from 3,835,616 $DYDX to 2,876,712 $DYDX per epoch. The dYdX community can utilize the remaining 958,904 $DYDX from the Rewards Treasury through a governance vote.

The other ways to acquire DYDX tokens:

Buy on cryptocurrency exchanges: DYDX tokens are available for purchase on several cryptocurrency exchanges, including Binance, Coinbase, and Kraken.
Participate in trading: Traders can earn DYDX tokens as part of the platform’s liquidity mining program. The program rewards traders contributing to the platform’s trading volume with a share of 25% of the total token supply.
Participate in governance: DYDX token holders can participate in the governance mechanism of the platform, allowing them to vote on protocol proposals and earn rewards for their participation.
Staking: DYDX token holders can stake their tokens in the Safety Module pool to earn additional rewards.
Earn through referrals: dYdX also has a referral program that rewards users with DYDX tokens for referring new users to the platform.

How To Buy DYDX Tokens On Binance

To buy dYdX (DYDX) token on Binance, you can follow these steps:

Create an account on Binance if you haven’t already.
Complete the required identity verification process (KYC).
Deposit funds into your Binance account. You can choose from a variety of deposit methods, including bank transfer, credit/debit card, and crypto transfer.
Once your funds are deposited, go to the Binance trading platform and select the DYDX token.
Enter the amount of DYDX you want to buy or the amount of USDT you want to spend to buy DYDX.
Review your order details and click “Buy” to complete the transaction.

Please note that buying and selling cryptocurrencies can be risky, and the value of DYDX can be volatile. Be sure to do your research and invest responsibly.

dYdX Investors

dYdX has gained significant attention and support from investors in the crypto space. In addition to the $65 million raised in its Series C funding round led by Paradigm, dYdX has also received investments from top VCs such as Andreessen Horowitz, Polychain Capital, and Three Arrows Capital, among others.

These investments demonstrate these investors’ confidence in the project’s potential to disrupt the traditional derivatives market and become a major player in the crypto industry.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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DYDX Tokens: The Ultimate Guide To Obtaining Them Like A Pro

Key Points:

DYDX tokens: how to get them.
Stake, provide liquidity, or buy on exchanges to get DYDX.
Holders can participate in the governance process of the dYdX platform.
Guide offers detailed steps for obtaining DYDX.
DYDX aims to drive growth and decentralization of dYdX with its tokenomics.

Previously, Coincu provided in-depth information about the DYDX token and the dYdX exchange, highlighting its advanced trading platform that features low fees, high capital efficiency, and seamless integration with other DeFi protocols. Building on that, Coincu has detailed a comprehensive guide on acquiring DYDX tokens, which is based on that.

DYDX Key Metrics

Token Name: dYdX Token.
Ticker: DYDX.
Blockchain: Ethereum.
Token Standard: ERC20.
Contract: 0x92d6c1e31e14520e676a687f0a93788b716beff5.
Token Type: Governance.
Max Supply: 1,000,000,000 DYDX.
Circulating Supply: 151,641,877 at the time of writing