DYDX, A BOMB THAT MAY EXPLODE IN THE FUTURE

DYDX is the token that allows the dYdX community to govern the layer 2 protocol. DYDX provides shared control of the protocol, enabling traders, liquidity providers, and dYdX partners to work collectively towards an advanced protocol. DYDX holders have the right to propose and vote on changes to the protocol, earn staking rewards, and enjoy trading fee discounts.

DYDX staking pools are designed to promote liquidity and security in the protocol. Trading, liquidity provision, and reward programs for past use of dYdX help drive the growth and adoption of dYdX.

What is the dYdX Platform?

dYdX platform, which allows users to connect and make transactions with their own wallets; It is a platform where loans can be made, transactions can be made with leverage and futures positions can be opened. This platform, which works on the Ethereum Blockchain and is managed by smart contracts, has a decentralized structure and allows margin trading.

DYDX Supply

A total of 1,000,000,000 copies of DYDX have been printed and are available for 5 years starting from August 3, 2021. The current supply in circulation is 55,680,000 units of DYDX. The first 5-year allocation of total DYDX supply is as follows:

• 50% to the community (500,000,000 DYDX)
• 27.73% to previous investors (277,295.070 DYDX)
• 15.27% (152,704,930 DYDX) to dYdX Trading or Foundation founders, employees, advisors and consultants
• 7% (70,000,000 DYDX) to future employees and advisors of dYdX Trading or dYdX Foundation

Starting five years after launch, a maximum sustained inflation rate of 2% per year can be used by governance to increase the supply of DYDX, ensuring that the community has the resources to continue the development and growth of the Protocol. Inflation was legislated through a governance proposal and was capped at 2% per year.
While the community allocation is established as stated above, DYDX owners have full control through governance over how the community allocation will be used going forward.

MİGRATİON TO THE DYDX CHAİN ?
On June 22, 2022, dYdX Trading Inc.(“dYdX Trading”) announced the next iteration of the dYdX protocol - the dYdX Chain Open Source Software. The dYdX Chain is a proof-of-stake blockchain network and, as such, it requires a Layer 1 (“L1”) protocol token for staking to validators in order to secure the chain and for stakers of the L1 token to govern the network. Holders of the L1 token can use their L1 tokens to run a validator or stake their tokens to a validator in order to participate in securing and governing the network. The wethDYDX Smart Contract enables the migration of ethDYDX from Ethereum to the dYdX Chain. When interacted with, the wethDYDX Smart Contract would carry out the following functions in a fully permissionless and automated manner: Receive and permanently lock the ethDYDX tokens sent by the user to the wethDYDX Smart Contract; Send a wrapped version of the Ethereum-based DYDX token (“wethDYDX”) to the user on a 1-1 proportional basis on Ethereum; and dYdX Chain validators can also read and ingest the information in the wethDYDX Smart Contract such that corresponding DYDX can be distributed to users by validators on the dYdX Chain once there is confirmation that Step 1 above is complete and the ethDYDX is permanently locked in the wethDYDX Smart Contract. More information about the migration of ethDYDX from Ethereum to dYdX Chain is available here.