The dYdX community approves revenue sharing proposal

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

The proposal, accepted on November 15, allocates 50% of the protocol revenue to MegaVault and 10% to the Treasury SubDAO. According to the dYdX Foundation, expedited voting saw a 76.99% turnout, with more than 155 million DYDXs representing 89% of the votes.

dYdX owners voted on the proposal a few weeks after research and software engineering solutions provider nethermind posted it on its community forum on October 22. Targeted ecosystem aspects include DYDX tokenomics and protocol competitiveness.

Its implementation will mean improved DYDX token utility, reduced emissions, and competitiveness against rival protocols such as Hyperliquid.

50% of the proceeds will go to MegaVault

Under the offering, 50% of dYdX Chain’s revenue will go towards MegaVault, a feature that allows users to deposit stablecoin USDC and provide liquidity in exchange for returns. This allocation will encourage user participation and support continuous decentralized exchange once the protocol is launched.

“Since liquidity is a key component of dYdX’s competitive advantage, and MegaVault’s TVL must be as high as possible while also balancing returns to stakers, we propose to direct 50% of the protocol revenue to MegaVault. network security,” the proposal reads in part.

While 50% of the protocol’s revenue is a significant amount, the community notes that the DEX will benefit if it maximizes liquidity. 10% of the protocol revenue set for the Treasury subDAO will be used to complete staking rewards.

Launched on October 26, 2023, dYdX Chain has achieved transaction volume of more than $232 billion. Meanwhile, more than $39 million has been distributed to validators and stakers.