Yeah, the rewards got reduced, but some parts of the new rewards system design are still a bit unclear. Maybe it’s just me not understanding it fully from this Topic.
From what I gather, for the first little while, up to 99% of fees will be given back as rewards in dydx tokens. That percentage will be lowered through voting once the liquidity migrates from V3.
My question is, what token will validators receive their rewards in? USDC or the native dydx token?
I’m also not sure if there will be any limit on dydx token rewards per block.
Overall, this trading rewards + stake rewards system (especially with the 99% fee return in the beginning) seems like an open invitation for wash trading. Someone with a big stack can get both rewards and a portion of fees from the validator. So their Rakeback (using a term from poker) would end up being >100%.
I totally support this proposal, but I think we need to clarify important points.