As mentioned in the launch announcement, $DYDX has been distributed to previous users of all dYdX protocols (for those residing in a jurisdiction that allows $DYDX usage as per our Terms of Use) based on a snapshot taken on July 26, 2021 at 00:00:00 UTC.
If you qualify, you can check your allocation sum and the trading goal needed to access the entire amount on the Rewards tab. You can now begin trading towards unlocking your portion on the Layer 2 exchange.
If you qualify, you can access the unblocked segment of your portion on September 8, 2021 at 15:00:00 UTC by means of the governance dashboard here. $DYDX tokens will also become transferrable near this period.
Motivation
In order to ensure effective and community-driven governance, it is essential for a committed and active community to possess a considerable amount of $DYDX. The best way to begin constructing community governance is with the dYdX Protocol’s current and former users. Retroactive mining assigns a major portion of $DYDX to these existing and past users, allowing them to become important early members of dYdX governance.
The success of the dYdX Protocol is attributable to its present and former users, who are rewarded with a substantial portion of the $DYDX supply for their past and future usage. This incentivizes strong community governance while simultaneously stimulating growth and involvement with the dYdX Protocol.
How it works?
7.5% (or 75,000,000 $DYDX) of the total supply of $DYDX has been assigned to the retroactive mining program.
Distribution of $DYDX has been allotted to previous patrons of dYdX protocols (except for those situated in a place where utilization of $DYDX is not allowed, including the U.S.) depending on a capture finishing July 26, 2021 at 00:00:00 UTC. There are five allocation levels which take into consideration an individual’s earlier involvement across all dYdX protocols. Each eligible user is allocated to one tier based on their past usage.
To be eligible to receive $DYDX, users with a history of activity must fulfill their respective claim objectives on Layer 2 Perpetuals during the initial 28-day period (Epoch 0).
Why Retroactive Mining?
It is essential to ensure that holders of $DYDX are active participants in the dYdX Protocol, since it should be governed by its users.
Over the last three years, the dYdX Protocol has gone through a substantial evolution. It began with leveraged tokens, then moved on to lending, margin trading, and spot trading before concentrating mainly on derivatives – particularly perpetuals. As derivatives present a distinct market and higher level of complexity in comparison to former offerings, those who may receive retroactive mining rewards should be conversant with and have employed the current dYdX Layer 2 Protocol.
Token incentives are an effective way to promote expansion, and reactivating former users is a tried-and-true method for increasing growth. By associating reward allocations to utilization of the present product, the dYdX Layer 2 Protocol can gain traction by offering ex-users a powerful motivation to give it a go, while ensuring that all original token owners are users of the dYdX Layer 2 Protocol.
Unlocking dYdX tokens
Previous dYdX users can access their prior activity and position for Retroactive Mining here. To acquire $DYDX, customers must engage in trading on the dYdX Layer 2 Protocol to reach their specific requirements.
In order to take advantage of the full distribution of $DYDX tokens, traders must reach a particular trading volume level when trading perpetual contracts on the dYdX Layer 2 Protocol.
Retroactive rewards can be redeemed proportionally to the target volume. For instance, if a user has an objective of $5,000 in trading volume on the dYdX Layer 2 Protocol but only trades $2,500 in epoch 0, they will only receive half of the allocated reward.
Unclaimed $DYDX at the close of epoch 0 will be relinquished and allocated to the communal fund.
Claiming dYdX Tokens
The Retroactive Mining Rewards-earned $DYDX tokens can be claimed and transferred after the initial transfer restriction period has ended.
On September 8, 2021 at 3:00 PM (UTC), eight days after the conclusion of Epoch 0, the initial transfer limits will be eliminated and users can access their $DYDX tokens acquired through Retroactive Mining Rewards – with options to redeem, move, or assign them.
Any $DYDX not claimed at the conclusion of Epoch 0 will be relinquished and allocated to the communal treasury.
