Treasury SubDAO Update: DYDX Allocation to Seed DYDX ETP
Following the recent launch of the DYDX Exchange Traded Product (ETP), the Treasury SubDAO has redirected a portion of DYDX from the treasury to help seed this new initiative. To meet the $7 million in-kind seeding requirement set by the ETP issuer, some DYDX tokens were unstaked from validators eligible in the staking program and will be allocated directly to the ETP after the unbonding period.
It is important to emphasise that these tokens are NOT being sold. Instead, they are being directly deposited into the ETP structure to support its launch. This in-kind seeding represents an exchange of assets (DYDX) for ETP shares in the primary market, not a sale on the secondary market, enabling the ETP to enter the market from a strong position.
This decision reflects the Treasury SubDAO’s broader mandate of supporting treasury sustainability and ecosystem growth. The DYDX ETP opens up access to a wider audience by allowing investors to gain exposure to DYDX directly in USD or EUR, making the token more accessible and expanding its reach beyond the existing community.
We believe this step strengthens both the treasury’s long-term strategy and the overall growth of the dYdX ecosystem.