Update as of January 31, 2023
Part of the initial $DYDX allocation was reserved for:
- past investors of dYdX Trading Inc. (27.7%), and
- founders, employees, advisors, and consultants of dYdX Trading Inc. and dYdX Foundation (15.3%).
All past investors of dYdX Trading Inc. are subject to the transfer restriction schedule outlined in the investor warrants (as recently amended).
All founders, current employees, advisors, consultants, and the vast majority of past employees of dYdX Trading Inc. and dYdX Foundation are also subject to the transfer restriction schedule outlined in the investor warrants (as recently amended). Approximately 99.5% of locked $DYDX remains locked under the new transfer restriction schedule.
Per the original blog post introducing $DYDX, all locked $DYDX holders must comply with the transfer restriction enforced through off-chain contractual agreements with the dYdX Foundation and dYdX Trading Inc. All employees and consultants are also subject to various vesting schedules that could result in them losing their rights to $DYDX.
dYdX Foundation tracks wallet addresses to determine whether any transfers have been made in violation of that restriction.
The dYdX Foundation has expressed willingness to bring legal action against investors who do not comply with these requirements.
Helpful Links:
- https://docs.dydx.community/dydx-governance/start-here/dydx-allocations
- https://docs.dydx.community/dydx-governance/start-here/dydx-allocations#what-is-the-lockup-for-usddydx-issued-to-investors-existing-and-future-employees-and-consultants
- https://dydx.foundation/blog/lock-up-extension
Summary
dYdX Trading Inc., dYdX Foundation, and certain parties to the Warrants to Purchase Tokens (“Warrants”) holding a number of $DYDX tokens sufficient to amend the Warrants, signed an amendment (the “Amendment”) whereby, among other things, the transfer restriction schedule applicable to the $DYDX Tokens issued in connection with the Warrants (the “Tokens”) has been extended, including by postponing the initial release date (the “Initial Unlock Date”) to December 1, 2023 for all investors that are a party to the Warrants.
Context
dYdX Foundation is a non-profit Swiss Foundation formed in Zug, Switzerland on June 22, 2021. dYdX Foundation was created to support and grow the dYdX protocol ecosystem by enabling communities, developers, and decentralized governance.
On August 3, 2021, dYdX Foundation issued $DYDX, a governance token that allows the dYdX Protocol’s community to govern the dYdX Layer 2 protocol to align incentives between traders, liquidity providers and partners. The DYDX token enables a robust ecosystem around governance, rewards, and staking - each of which is designed to drive future growth & decentralization of the dYdX Layer 2 protocol. A total of 1,000,000,000 $DYDX have been minted, and programmed to become accessible over five (5) years, starting on August 3rd, 2021, at 15:00:00 UTC. Part of the initial allocation was reserved for:
- past investors of dYdX Trading Inc. (27.7%),
- founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation (15.3%), and
- future employees and consultants of dYdX Trading Inc. or dYdX Foundation (7.0%).
The Amendment mentioned above does not alter the staggered unlock that occurs after the Initial Unlock Date, and therefore, pursuant to the Amendment, relevant Tokens will be released from the transfer restriction as follows:
- (i) 30% on December 1, 2023 (the new Initial Unlock Date);
- (ii) 40% in equal monthly installments on the first day of each month from January 1, 2024, to June 1, 2024;
- (iii) 20% in equal monthly installments on the first day of each month from July 1, 2024, to June 1, 2025; and
- (iv) 10% in equal monthly installments on the first day of each month from July 1, 2025, to June 1, 2026.
Various founders, employees, advisors, and consultants of dYdX Trading Inc. and dYdX Foundation are also subject to the transfer restriction schedule set forth in the Amendment.
All of the above dates shall be interpreted to refer to UTC time zone.
Additional information about the DYDX token and the restrictions that apply thereto can be found at https://dydx.foundation/blog/introducing-dydx-token. Also, you can read more about the allocation of $DYDX in our governance documents.
About the dYdX Foundation
Legitimacy and Disclaimer
Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.
dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain's infrastructure.
The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.
The dYdX Chain software (including dYdX Unlimited) is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components (including dYdX Unlimited) be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software (including dYdX Unlimited) or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software, i ncluding dYdX Unlimited (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited) “AS IS, WHERE IS”.
Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.
Depositing into the MegaVault carries risks. Do your own research and make sure to understand the risks before depositing funds. MegaVault returns are not guaranteed and may fluctuate over time depending on multiple factors. MegaVault returns may be negative and you may lose your entire investment.The dYdX Foundation does not operate or has control over the MegaVault and has not been involved in the development, deployment and operation of any component of the dYdX Unlimited software (including the MegaVault).
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