dYdX community votes to stake $60 million from treasury to boost security

The community of decentralized derivatives exchanges dYdX DYDX

+2.79%
has voted to stake 20 million dYdX Chain tokens, worth approximately $60 million at current prices, with Cosmos staking provider Step STRD

+3.83%
to increase the economic security of the network and encourage diversity of interests within the community.

The staked tokens earn USDC rewards, which automatically convert into more dYdX tokens, creating a flywheel effect for stakers. “The proceeds from the fees generated will be continuously used through Stride to purchase DYDX, which will be returned to the treasury,” dYdX founder Antonio Juliano explained in a message on X.

In a vote with 81% participation, the measure passed with 91% support, albeit by a few votes dissenters The original proposal noted that the approval of the proposal could lead to a reduction in dYdX’s APY, making the token less attractive to new investors.

Stride welcomed the proposal and offered to charge just 7.5% fees, a 2.5% reduction from the usual 10% fees. “This [proposal] will increase the economic security of the dYdX chain while improving the decentralization of interests,” the company said wrote on X.