dYdX community votes to take $60 million stake from Treasury to strengthen security

Decentralized Derivatives Exchange Community dYdX D.Y.D.X.

+3.82%
It was decided to stake 20 million dYdX Chain tokens, worth about $60 million at current prices, with the Cosmos staking provider. stride STRD

+1.63%
To enhance the economic security of the network and encourage stake diversity among communities.

Staked tokens will receive USDC rewards, which will automatically be merged into more dYdX tokens, creating a flywheel effect for stakers. “The fee revenue generated will be used to purchase DYDX on an ongoing basis through Stride, which will then be returned to the treasury,” dYdX founder Antonio Juliano explained in a post on X.

In a vote with 81% participation, the bill passed with 91% support, but some opponents of the original proposal pointed out that passage of the proposal could reduce dYdX’s APY, making the token less attractive to new investors.

Stride welcomes this offer and offers to charge only a 7.5% fee, a 2.5% discount from the usual 10% fee. “This (proposal) will strengthen the economic security of the dYdX chain while also improving stake decentralization,” the company wrote to X.

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