Lock-up extension for $DYDX issued to investors, employees and consultants (Updated 01/31/2023)
Jan 24, 2023
Update as of January 31, 2023
Part of the initial $DYDXallocation was reserved for:
past investors of dYdX Trading Inc. (27.7%), and
founders, employees, advisors, and consultants of dYdX Trading Inc. and dYdX Foundation (15.3%).
All past investors of dYdX Trading Inc. are subject to the transfer restriction schedule outlined in the investor warrants (as recently amended).
All founders, current employees, advisors, consultants, and the vast majority of past employees of dYdX Trading Inc. and dYdX Foundation are also subject to the transfer restriction schedule outlined in the investor warrants (as recently amended). Approximately 99.5% of locked $DYDX remains locked under the new transfer restriction schedule.
Per the original blog post introducing $DYDX, all locked $DYDX holders must comply with the transfer restriction enforced through off-chain contractual agreements with the dYdX Foundation and dYdX Trading Inc. All employees and consultants are also subject to various vesting schedules that could result in them losing their rights to $DYDX.
dYdX Foundation tracks wallet addresses to determine whether any transfers have been made in violation of that restriction.
The dYdX Foundation has expressed willingness to bring legal action against investors who do not comply with these requirements.
dYdX Trading Inc., dYdX Foundation, and certain parties to the Warrants to Purchase Tokens (“Warrants”) holding a number of $DYDX tokens sufficient to amend the Warrants, signed an amendment (the “Amendment”) whereby, among other things, the transfer restriction schedule applicable to the $DYDX Tokens issued in connection with the Warrants (the “Tokens”) has been extended, including by postponing the initial release date (the “Initial Unlock Date”) to December 1, 2023 for all investors that are a party to the Warrants.
dYdX Foundation is a non-profit Swiss Foundation formed in Zug, Switzerland on June 22, 2021. dYdX Foundation was created to support and grow the dYdX protocol ecosystem by enabling communities, developers, and decentralized governance.
On August 3, 2021, dYdX Foundation issued$DYDX, a governance token that allows the dYdX Protocol’s community to govern the dYdX Layer 2 protocol to align incentives between traders, liquidity providers and partners. The DYDX token enables a robust ecosystem around governance, rewards, and staking - each of which is designed to drive future growth & decentralization of the dYdX Layer 2 protocol. A total of 1,000,000,000 $DYDX have been minted, and programmed to become accessible over five (5) years, starting on August 3rd, 2021, at 15:00:00 UTC. Part of the initial allocation was reserved for:
past investors of dYdX Trading Inc. (27.7%),
founders, employees, advisors, and consultants of dYdX Trading Inc. or dYdX Foundation (15.3%), and
future employees and consultants of dYdX Trading Inc. or dYdX Foundation (7.0%).
The Amendment mentioned above does not alter the staggered unlock that occurs after the Initial Unlock Date, and therefore, pursuant to the Amendment, relevant Tokens will be released from the transfer restriction as follows:
(i) 30% on December 1, 2023 (the new Initial Unlock Date);
(ii) 40% in equal monthly installments on the first day of each month from January 1, 2024, to June 1, 2024;
(iii) 20% in equal monthly installments on the first day of each month from July 1, 2024, to June 1, 2025; and
(iv) 10% in equal monthly installments on the first day of each month from July 1, 2025, to June 1, 2026.
Various founders, employees, advisors, and consultants of dYdX Trading Inc. and dYdX Foundation are also subject to the transfer restriction schedule set forth in the Amendment.
All of the above dates shall be interpreted to refer to UTC time zone.
dYdX Foundation’s purpose is to support and grow the dYdX protocol ecosystem by enabling communities, developers, and decentralized governance.
Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. The dYdX community is sovereign to make decisions freely from time to time, in accordance with the governance rules, principles, and mechanisms adopted by the dYdX DAO. Community discussion and interaction on the contents of this post are encouraged. The dYdX Foundation does not directly participate in governance decisions to be made by the dYdX community, including, without limitation, by making and/or voting on governance proposals. The dYdX Foundation may change, update or complement its analysis or opinions expressed in this post in the future and assumes no obligation to publicly disclose any such change or update. This post is solely based on the information available to the dYdX Foundation at the time it is made and should only be read and taken into consideration at the time it is made and on the basis of the circumstances that surround it.
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