dYdX Proposes $8M Funding Allocation To Support Revised Grants Program

In Brief

dYdX has proposed allocating $8 million in DYDX tokens from its community treasury to fund a revised Grants Program, aiming to support ecosystem developers, researchers, and contributors over the next 12 to 18 months.

Decentralized exchange dYdX introduced a new proposal seeking approval for the allocation of $8 million in DYDX tokens from the dYdX Chain Community Treasury. The funds would be directed to dYdX Grants, a fully owned subsidiary of the dYdX Foundation, with the goal of establishing and managing a revised version of the dYdX Grants Program.

The dYdX Foundation, formed in 2021 as an independent non-profit entity based in Zug, Switzerland, is tasked with supporting the ongoing and future development of the dYdX protocol. Its scope includes technical and non-technical elements of the ecosystem and aims to encourage broader participation in its growth and improvement.

dYdX Grants operates as a wholly owned subsidiary incorporated in the Cayman Islands, falling under the governance and strategic framework of the dYdX Foundation. This structure ensures that all funds and resources managed by the Foundation or its affiliates are used solely in line with the Foundation’s defined mission, which focuses on advancing the protocol and supporting the ecosystem.

Integrating dYdX Grants into the Foundation’s corporate framework aims to reinforce trust in how funds are allocated, ensuring transparency, aligned interests, and accountability, while maintaining a focus on the long-term development of the dYdX ecosystem.

dYdX Grants To Enhance Support For Builders, Researchers, And Contributors Across The Ecosystem

As outlined in the proposal, the requested funding is expected to support dYdX Grants for a period of approximately 12 to 18 months. The allocation aims to enhance support for developers, researchers, and contributors across the dYdX ecosystem, while also improving operational efficiency and cost management, among other outlined objectives.

The dYdX Foundation continues to prioritize the development of the protocol’s broader ecosystem. In light of recent organizational changes—specifically the transfer of Marketing, Business Development, and Solutions functions to dYdX International Ltd., a subsidiary of dYdX Trading Inc.—the Foundation is now in a position to concentrate on managing a revised version of the dYdX Grants Program.

Following community input, an on-chain governance proposal is planned for August 4, 2025. This proposal seeks community approval to authorize the transfer of $8 million in DYDX tokens—equivalent to approximately 14,285,714.29 DYDX based on a 30-day time-weighted average price (TWAP) of $0.56—from the dYdX Chain Community Treasury to a wallet controlled by dYdX Grants Ltd. The figures cited reflect market conditions as of July 22, 2025, and will be updated at the time of the proposal submission.

The governance proposal also includes steps to conclude the existing dYdX Ecosystem Development Program (DEP) and dissolve the associated Guernsey-based non-charitable trust. Any ongoing commitments under DEP would be transferred to dYdX Grants Ltd., which would also assume ownership of any remaining assets, including digital currencies, intellectual property, and web infrastructure.

The $8 million request represents about 1.5% of the total DYDX token supply and approximately 6.2% of the DYDX assets currently held by the community treasury, which contains close to 229 million DYDX tokens—valued at around $128 million based on the same 30-day TWAP.

If approved, the net amount available to dYdX Grants Ltd. would be approximately $7.55 million, intended to fund new grants and cover operational expenses for the updated program. Based on analysis of previous grant cycles, current obligations, and evolving ecosystem priorities, the proposed fund allocation is estimated as follows: around 50% or $4.92 million for infrastructure, tooling, and security; roughly 30% or $2.95 million for ecosystem and token growth including marketing; and 20% or approximately $1.97 million for research and development. These allocations include existing DEP obligations and remain flexible, subject to future ecosystem requirements.