Introduction to DYDX Coin: Three Key Functions
dYdX launched its governance token, DYDX, in 2021 (note the case sensitivity). This token serves three primary purposes: governance, trading rewards, and fee discounts.
Governance with DYDX
Like most protocol tokens, holding DYDX allows users to vote on proposals in the dYdX forum and even initiate new proposals to steer the project's direction.
Trading Rewards with DYDX
- Reward Distribution: Based on trading fees paid by users on the dYdX protocol.
- Cycle Duration: Rewards are distributed every 28 days (one cycle) for five years.
- Total Allocation: 14.5% of the total token supply is allocated as rewards, with 1,582,192 DYDX distributed per cycle.
- Eligibility: All traders on dYdX qualify for these rewards.
- Claim Process: Users must wait ~7 days after each cycle to claim rewards.
Fee Discounts with DYDX
Current dYdX fees:
- Maker (Limit Order): 0.02%
- Taker (Market Order): 0.05%
Holding more DYDX increases fee discounts, up to:
- Maker: 0% fee
- Taker: 0.02% fee
DYDX Tokenomics
- Total Supply: 1 billion DYDX tokens, gradually unlocked over five years starting August 3, 2021.
Community Allocation: 50.0%, including:
- Trading Rewards: 14.5%
- Past User Milestones: 5.0%
- Liquidity Provider Rewards: 5.2%
- Community Treasury: 24.2%
- USDC Staking Pool: 0.6%
- DYDX Security Pool: 0.5%
- Investors: 27.7% (e.g., venture capital).
- Team & Advisors: 15.3%.
- Future Team: 7.0%.
Post-2026, inflation may increase supply by up to 2% annually.
DYDX Coin Snapshot
| Metric | Details |
|---|---|
| Symbol | $DYDX |
| Market Cap Rank | ~96 |
| Launch Year | 2021 |
| All-Time High (ATH) | $27.86 |
| Tradable Pairs | 30+ |
| Total Supply | 1 billion |
| Circulating Supply | 173 million |
| Use Cases | Governance, Rewards, Discounts |
| Official Website | dYdX Exchange |
How to Buy DYDX Coin
DYDX is available on major centralized exchanges. Here’s a step-by-step guide using OKX:
- Log In: Visit 👉 OKX Official Site and sign in.
- Search: Find DYDX and select USDT spot trading (avoid high-risk options like contracts unless experienced).
- Purchase: Enter the amount and click "Buy DYDX."
Is DYDX Worth Buying? Price Outlook
Token Unlock Analysis
- December 2023: Supply nearly doubled, potentially increasing sell pressure.
- Team & Advisors: 70% unlock by June 2024; 90% by June 2025. This aligns long-term incentives with dYdX’s growth.
Key Considerations
- Short-term sells post-unlock may not account for V4 upgrades or strategic delays.
- Avoid knee-jerk reactions; evaluate fundamentals and roadmap.
FAQ Section
Q1: What is DYDX’s primary use case?
A: Governance, trading rewards, and fee discounts on dYdX.
Q2: How often are trading rewards distributed?
A: Every 28 days for five years.
Q3: Where can I buy DYDX securely?
A: Major exchanges like 👉 OKX.
Q4: Will DYDX’s supply inflate after 2026?
A: Yes, up to 2% annually.
Q5: What’s the highest fee discount with DYDX?
A: 0% maker fees and 0.02% taker fees.
Q6: Why did DYDX’s supply surge in 2023?
A: Scheduled unlocks for team and investor allocations.