Dear dYdX Community,
The proposal to adjust protocol revenue sharing is now live. This proposal builds upon the recent text proposal to allocate 80% of protocol revenue for the buyback program, which received strong community support.
The text proposal was non-binding and a good indication of community support to increase the percentage of protocol revenue directed to the Buyback Program.
The main difference between our proposal and the previous text proposal to increase buybacks to 80%:
- 75% to the Buy & Stake Program
- 5% to MegaVault
Rationale for a 5% allocation of revenue to Megavault:
- Reduced allocation would help reduce MegaVault’s scope to focus on providing liquidity on newly listed markets, potentially improving its performance over time.
- Market listings are still dependent on depositing $10K into Megavault.
As such, we have recommended the following revenue share allocation through the on-chain proposal:
| Allocation | Current Revenue Share | Proposed Revenue Share |
|---|---|---|
| Buy & Stake Program | 25% | 75% |
| MegaVault | 25% | 5% |
| Treasury SubDAO | 10% | 5% |
| Stakers & Validators | 40% | 15% |
We encourage the community to vote in accordance with their vote on the text proposal to carry forward the momentum from Proposal #304 and align incentives with long-term protocol growth.