The decentralized derivatives exchange dYdX community has recently made a significant decision to enhance the security and diversity of its network. They voted to stake 20 million dYdX Chain tokens, valued at approximately $60 million based on current prices, with the Cosmos staking provider Stride. This strategic move aims to fortify the economic foundation of the network and promote a broader distribution of stakes within the community.
By staking these tokens, participants will earn rewards in USDC, which will then be automatically reinvested to acquire more dYdX tokens. This mechanism sets in motion a positive cycle for those staking their tokens. Antonio Juliano, the founder of dYdX, elaborated on this, stating that the generated fees would continually be utilized through Stride to purchase DYDX tokens, which will be added back to the treasury.
The decision was made following a vote in which 81% of the community participated, with an overwhelming 91% in favor of the proposal. However, some expressed concerns that the implementation of the proposal might result in a decrease in dYdX’s Annual Percentage Yield (APY), potentially diminishing its appeal to prospective investors.
Stride, the chosen staking provider, welcomed the proposal and even offered a reduced fee structure of 7.5%, down from their standard 10%. They expressed confidence that this initiative would bolster the economic security of the dYdX chain while simultaneously fostering decentralization of stakes within the network.
