The dYdX foundation has announced that it has successfully raised $30 million worth of DYDX tokens from the dYdX chain Chain Community Treasury.
The announcement follows a community vote that saw 98% of the votes supporting the Foundation Fundraise proposal.
dYdX Foundation Secures Funding
The vote on the proposal saw a participation rate of 86.4%, indicating strong community backing for the initiative. The funding gives dYdX much-needed leeway, with a three-year operational runway, and supports a comprehensive roadmap that aims to enhance the larger dYdX ecosystem significantly. The fundraising will also allow dYdX to focus on critical areas such as improving governance velocity and impact, fostering decentralized autonomous organization (DAO) enablement, and integrating technical and strategic advancements within the dYdX Chain and its applications.
The funding equals approximately 4% of the 253 million DYDX tokens held in the dYdX community treasury. The funds will be utilized towards talent acquisition, retention, and the expansion of the dYdX Chain. The CEO of the dYdX Foundation, Charles d’Haussy, stated,
“The Foundation has played an important role in the dYdX Ecosystem, helping to foster innovation, drive governance, and grow adoption of the dYdX protocol. This funding from the Community Treasury enables the Foundation to deliver on its strategic roadmap. We’re thrilled by the unanimous support from the community, and we’re excited to continue to deliver meaningful contributions and impact to the dYdX Ecosystem.”
The Vice President of Strategy and Operations at the dYdX Foundation, David Gogel, highlighted the strategic importance of the fundraise, stating that the primary goal of the fundraise was to secure additional funding and facilitate support for the dYdX protocol. The Foundation stated that it sought funding from the treasury for two reasons: its non-profit nature, which does not allow it to charge fees or seek profits, and the activation of the dYdX treasury, which holds around 6% of 261 million DYDX tokens.
The Foundation plans to diversify a considerable portion of the acquired funds into fiat currency and stablecoins. It also plans to expand its staking operations and leverage the yield on around 2.5 million DYDX tokens. The funding also takes the dYdX Foundation’s operational runways beyond 18 months, ensuring that it can contribute to the growth of the larger decentralized finance ecosystem.
“Ultimately, with these three years of runway, we want to continue to hire and retain the best team, give our team visibility and some level of job security. Our goal is to get 18 months of runway in cash to be able to cover our fiat operating expenses.”
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