dYdX Treasury SubDAO Proposal: Steakhouse Financial

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Hi, @Steakhouse

Can I ask 2 questions? ( These are the questions I also asked Karpatkey. )

• How does staking Community Pool funds by the treasury subDAO, which lowers APR for delegators and may reduce the token’s value, actually enhance the long-term value of the dYdX token?

• How can we increase protocol revenue by at least 17% using the Treasury SubDAO revenue?

dYdX Treasury SubDAO Proposal

The staking of Community Pool funds by the treasury subDAO will further reduce the APR for existing delegators. A decline in APR directly correlates with a decrease in the token’s value. It is necessary to clearly explain how diverting profits, which would otherwise go to delegators, to the Treasury subDAO and Validator serves to enhance the long-term value of the dYdX token. From the perspective of a Validator who benefits from receiving delegations, this is advantageous; however, this is no…

dYdX Treasury SubDAO Proposal

Thank you for the detailed discussion, @ttt_vn, and for presenting specific numbers. I have clarified the key points based on the same assumptions(correct me if the number is wrong ). If we assume that protocol revenue remains constant and delegations are evenly distributed among validators, delegators will incur a loss of around 15%, and Big Validators will see little to no benefit. On the other hand: Small validators will experience a revenue increase of over 40%. Medium vali…