According to its foundation website, the DeFi trading platform dYdX is launching a governance token.
As with previous governance token launches, a portion of the initial supply will be distributed to past protocol users who meet certain criteria. In this case, previous dYdX users will receive 7.5 percent of the supply. Token distribution will take place over a five-year period.
The launch is noteworthy because it comes from a major decentralized finance structure. In some ways, it is similar to projects like Uniswap (UNI) and Compound (COMP), which have decentralized their governance structures through the retroactive airdropping of tokens to their userbase.
The governance token will be used to decide the protocol’s future direction, and token holders will be able to vote on new feature proposals. This will happen on the recently launched governance system.
According to the foundation’s website, 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.”
The site also mentions what appear to be geographic restrictions on the token. “DYDX is not available in the United States or other restricted countries. You are not permitted to receive or transact in DYDX if you are a resident of, or incorporated or headquartered in, the United States of America or another prohibited jurisdiction.”