Summary
This proposal seeks community approval to distribute 1,833,333.33 DYDX tokens from the dYdX Chain Community Treasury to qualifying users for Season 11 of the dYdX Surge Program.
For Season 11, the total reward pool amounts to $200,000 in DYDX, with the following allocation:
- $100,000 in DYDX for the 100 eligible traders under the Liquidation Rebate Program.
- $100,000 in DYDX for the winners of the BONK Trading Competition.
Abstract
In accordance with the dYdX Surge Renewal Proposal, CryptoLearningClub (CLC), with support from dYdX Labs, is responsible for analyzing seasonal trading data and providing recommendations for incentive distributions.
For Season 11, CLC conducted a detailed review of on-chain trading activity to ensure rewards are allocated to accounts engaging in genuine and organic trading, liquidation, and P&L activity. This analysis includes identifying and excluding behavior indicative of artificial volume generation or wash trading.
Specification
We propose the following distribution breakdown:
- Liquidation Rebate Program: Distributing $100,000 in DYDX (equivalent to 1,000,000 DYDX, calculated using a 7-day TWAP of $0.1) for the Liquidation Rebate Program in February, allocated proportionally to the top 100 eligible addresses with the largest realized liquidation losses.
- BONK Trading Competition: Distributing $100,000 in DYDX (equivalent to 833,333.33 DYDX, calculated using a 30-day TWAP of $0.12) for the BONK Trading Competition in February, allocated in accordance to their leaderboard position.
Distribution Mechanism:
The distribution will be executed via a claim-based flow implemented on dydx.xyz. Eligible users will be notified through in-app or web notifications and directed to a dedicated claims page.
Funds will be transferred to an account controlled by CLC for distribution, with all transactions publicly verifiable via a block explorer.
- CLC Controller Account:
dydx1lxjqtqzsnnxygkax03d8ygxrm7er23xjqpg4e6
Eligible users will receive DYDX rewards within 7 days of submitting a valid claim. The claim window will remain open for 30 days, after which any unclaimed funds will be returned to the Community Treasury.
The full list of recipient accounts and their corresponding proposed reward allocations can be found here.
Next Steps
We will submit an on-chain proposal for the community to vote on the proposed incentive distribution shortly.