dYdX Governance Token Airdrop Lands Platform Users With 5 Figure Gains

dYdX initiated the distribution of its governance token with minor hiccups but no significant impact to its users

By
Chung Yee
on
September 13, 2021
Category:
Blockchain News

dYdX Governance Token

Some recipients walked away with a considerable windfall as the long awaited dYdX airdrop awarded loyal users with retroactive and user trading rewards launching the price of the token to a high of $15.72, according to Coingecko.   

However, the rollout was marred by an incident where an error was discovered in the Safety Staking Pool’s smart contract. The team immediately removed access to the Safety Staking Pool as a precaution. The team also assured its users’ that the user funds are not compromised. 

The design of the Safety Staking Pool included deposits being locked for a minimum of 1 epoch (28 days). Assuming an upgrade proposal can be passed within the next week, no user impact will have occurred, & the few early stakers will still be able to withdraw their funds on time - dYdX Foundation explains in its Twitter announcement. 
Source: dYdX ranks at the 40th position on Coingecko in the Decentralized Exchange (DEX) category

The announcement of an airdrop was made in early August after much anticipation following the success of Uniswap and 1Inch’s governance token. 

dYdX’s Governance Token 

The governance token allows dYdX’s community to govern its layer-2 protocol. The stakeholders are the traders, liquidity providers and partners. Similar to other decentralized exchanges, a portion of the total allocation will be distributed to users that had interacted with the protocol subject to certain qualifying conditions. Here, 7.5% of the supply will be retroactively vested to those that qualified. Token allocation will take place over 5 years. 

dYdX enables a robust ecosystem around governance, rewards, and staking — each designed to drive future growth and decentralization of dYdX, resulting in a better experience for users, says the dYdX team through a post on its dYdX token and governance. 
Source : A total of 64k addresses have been identified to be eligible for the 7.5% retroactive reward 

Governance token allows for its holders to shape and steer the direction of the protocol. Decisions on ongoing projects or a change to the governance itself can be vetted and voted by its community members. This on-chain governance empowers the users and promises transparency by decentralizing control to the protocol. 

Future of dYdX

The distribution of its governance token is one of the milestones of a fully decentralized protocol. Uniswap airdropped 400 $UNI of its governance token in September last year. Today the airdrop is worth approximately $9,000. The crypto community is growing and the need to have exchanges to meet the market’s demand will grow in tandem. 

Source: A total of 64k addresses have been identified to be eligible for the 7.5% retroactive reward

Centralized exchanges like Coinbase and Binance are facing regulatory hurdles and this would drive more traffic to decentralized exchanges like dYdX. The vesting of the dYdX’s governance token provides a fairly equitable spread for 5 years. Unless regulators decide to impose strict restrictions on unhosted wallets, there will be good growth for decentralized exchanges.  

Where to find dYdX:

Website | Twitter | Discord |. GitHub |

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance.

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