DeFi platform dYdX is launching a governance token

DeFi platform dYdX is launching a governance token

DeFi trading platform dYdX is launching a governance token, according to its foundation website.

Similar to previous governance token launches, a portion of the initial supply will be distributed to past users of the protocol who meet certain conditions. In this case, 7.5% of the supply will go to previous dYdX users. Token allocations are to take place over a five-year period.

The launch is a notable one, coming from a major decentralized finance structure. In a sense, it follows in the footsteps of projects such as Uniswap (UNI) and Compound (COMP), both of which have decentralized their governance structures through the retroactive airdropping of tokens to their userbase.

The governance token will be used to decide the future direction of the protocol, and token holders will be able to vote on proposals to add new features. This will take place on the newly launched governance system.

An additional 5% of the total supply will be used to fund an R&D treasury "to be allocated on an ongoing basis through contributor grants, community initiatives, liquidity mining, and other programs," according to the foundation website.

Also notable are what appear to be geographic restrictions on the token, per the site. "DYDX is not available in the United States or other prohibited jurisdictions. If you are a resident of, or incorporated or headquartered in, the United States of America or another prohibited jurisdiction, then you are not permitted to receive a distribution of, or transact in, DYDX."

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source