Defi platform dYdX, with $400 million worth of assets at its peak in February 2021, now at $200 million, has finally launched its much anticipated token.
The decentralized exchange said “7.50% of the initial token supply (75,000,000 DYDX) will be distributed to past users of any dYdX protocol who complete certain trading milestones on the Protocol, except for users located in a jurisdiction where DYDX is not permitted, including the United States.”
Many Americans were heard complaining online. Some even called for a boycott due to being left out because of SEC’s ‘protection.’
On investor protection, there’s “more a jurisdictional focus than international collaboration,” the new SEC chair Gary Gensler said.
That different approach means tens of thousands of mostly Europeans are going to get a big stimulus this September 8th once the first epoch of dYdX free token distribution ends.
We got 800 and something tokens as can be seen above through our test-run address where we see how a platform feels like from an end users perspective.
There’s governance now so token holders can vote on anything they want, including distribution of fees perhaps through tokens buybacks as well as maybe rewarding traders and liquidity providers.
One billion tokens in total are minted, given away for free so there’s no pooling of upfront capital. Meaning this should be outside of SEC’s jurisdiction in any event but the European coders have firewalled USA just to be extra safe.
Making it a party for Europeans with Mericans having only their own government to blame unless they do fork in which case presumably we get twice the tokens, so twice the parteeh for euro bros.
There’s no market for this yet as for now it is the claiming epoch until August 31st with eligible claimants needing to make a trade as detailed in what they are calling “mining rewards.”
This is a somewhat new invention from Chinese exchanges who used to give tokens out based on trading volumes, ballooning their volumes back in 2018-19.
Nowadays it’s called yield farming, getting reward points based on ‘consumption’ with digital code making the exchanging of these reward points far more convenient than in the analogue world. Thus you get a new business model for startups where we can all participate in the making and the eating of the cake, rather than at the very end just for the crumbs.
Speculation at this stage is that this might be valued at $2 or $3 per token, making the initial airdrop similar to Uniswap in fiat value, but just what the market will say remains to be seen.