DYDX rose 30 points, but the community was arguing.
On November 12th, the dYdX Foundation announced that since the launch of the dYdX Chain mainnet, over 349 million ethDYDX tokens have been cross-chain migrated, with a total staking amount of 6.85 million tokens.
In early December, DYDX will also see a large unlock, with most of it being allocated to early investors and the team.
Source: token.unlocks
Previously, the community believed that DYDX lacked application scenarios, even though the platform had impressive tokens, its performance was ordinary. However, now that dYdX has successfully migrated to the application chain, DYDX is used as a GAS consumption token and provides staking services, so its token price has also been pushed up with the development of the protocol. Earlier today, DYDX briefly broke through $4, with a 24-hour increase of 34.64%.
However, as the DYDX price rises, there have been some doubts about the dYdX Foundation within the community. The main controversy is that during the first two weeks before the large token unlock for insiders, the foundation announced that transaction fees would be distributed to validators and stakers, and that the foundation allows tokens still in the lock-up period to be staked.
dYdX activates wealth accumulation mode?
Community user @derpaderpederp posted that "dYdX has collected hundreds of millions of dollars in fees over the past 3 years, but has not distributed them to DYDX holders. Is it just a coincidence that they have now decided to transfer all fees to token holders in the two weeks before the internal token unlock?"称
In addition, @Evan_ss6 also stated that DYDX investors will be able to pledge locked tokens. He called on the community to strongly oppose this proposal, which uses the same fraudulent tactics as Serum. Let us not forget that the equity entity of this project has accumulated nearly 5 billion US dollars in transaction fees since the launch of the token.
It seems that the blame is being directed towards dYdX for the recent move to distribute all fees generated by dYdX Chain to validators and stakers. This action is seen as a form of fundraising similar to an IHO.
IHO refers to Initial Holder Offering, which is similar to ICO, but emphasizes becoming a token holder. Investors purchase tokens in IHO and may have rights related to project governance, revenue sharing, etc. Therefore, regarding the controversy over IHO, some people also replied that "IHO doesn't matter, but any DYDX token rewards (if they exist) should also be locked until the staked tokens are unlocked."
However, the points questioned by community users may have been anticipated by dYdX, and the appearance of such controversy on the road to empowering DYDX by the foundation may be inevitable.
On January 26th, dYdX postponed the unlocking of 150 million DYDX tokens from February 3rd to December 1st, with the unlocked amount accounting for 15% of the total supply. According to the latest unlocking schedule, the initial unlocking will take place on December 1st, 2023, accounting for 30% of the total unlocking amount. From January to June 2024, an equal amount of unlocking will take place on the first day of each month, accounting for 40% of the total unlocking amount. From July 2024 to June 2025, an equal amount of unlocking will take place on the first day of each month, accounting for 20% of the total unlocking amount. From July 2025 to June 2026, an equal amount of unlocking will take place on the first day of each month, accounting for 10% of the total unlocking amount.
Related reading: "DYDX v4 to be released soon: Reshaping token economic model and market prospects".
That is to say, the delay in unlocking is to better synchronize with the delayed dYdX v4 and ensure a good intersection between token supply and demand after value accumulation. As @GryphsisAcademy said, "Most of the tokens unlocked at that time may be staked, thus alleviating concerns about market sell-offs." And 70% of the tokens will be fully unlocked on June 1, 2024, and 90% of the tokens will be fully unlocked on June 1, 2025, leaving more time for token holders to align their interests.
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