The dYdX Foundation has published a forum post outlining a proposal to launch and operate a new dYdX Grants Program through dYdX Grants Ltd., a wholly owned subsidiary of the Foundation. The new program is designed to support ecosystem development with improved operational efficiency, cost-effectiveness, and strategic alignment.
The proposal outlines an allocation of $8 million in DYDX from the Community Treasury to fund the program over the next 12 to 18 months. Community feedback is encouraged ahead of a planned on-chain governance proposal on August 4, 2025.
Background and Motivation
Since 2021, grants in the dYdX ecosystem have been administered through the dYdX Ecosystem Development Program (DEP) - formerly known as the dYdX Grants Program, which has funded over 250 initiatives with approximately $15 million in cumulative funding. As the protocol matures, the Foundation has proposed a more scalable and integrated structure that reflects both operational learnings and the evolving needs of the dYdX ecosystem.
The proposed transition is intended to:
- Support and finance appropriate research and development activities and projects;
- Promote and educate the public on the dYdX ecosystem and/or dYdX protocol;
- Issue, receive, spend, and hold digital assets;
- Engage with various businesses, partners, banks, regulators, authorities, and other third parties to the benefit of the dYdX ecosystem;
- Acquire, hold, or grant trademarks, copyrights, and other intellectual property rights or licenses;
- Organize conferences and other events that support and promote the dYdX ecosystem and/or the dYdX protocol; and
- Conduct and promote all business and/or enter into all transactions, and generally perform all acts as may be necessary, appropriate, incidental to or desirable to assist in achieving or promoting the objects described above.
Summary of Proposed Actions
If the proposal proceeds to a vote and is approved by governance, the following changes would be enacted:
- Transfer $8 million in DYDX from the Community Treasury to dYdX Grants Ltd.
- Wind down the existing DEP and dissolve its associated trust structure.
- Assign approximately $2.3 million in active DEP grant obligations to dYdX Grants Ltd.
- Transfer remaining DEP assets - including DYDX, USDC, and relevant IP - to dYdX Grants Ltd.
Under the new structure, the program would be managed by a dedicated Grants Lead, supported by the broader Foundation team. Grants would follow a milestone-based review process, with regular updates published to the community.
Proposed Funding Allocation
Initial allocations under the proposed model are expected to follow these priorities:
- 50%: Infrastructure, tooling, and protocol security
- 30%: Ecosystem growth and adoption
- 20%: Research, development, and technical exploration
These allocations are non-binding and may be updated as ecosystem priorities evolve.
Next Steps
The forum post is an open call for feedback from the dYdX community. No on-chain vote has been initiated at this stage. Subject to discussion, a formal governance proposal is expected to be submitted on August 4, 2025.
Community members are encouraged to review the discussion and share feedback in the lead-up to the vote.
View the full proposal and join the discussion.
Acknowledging the Ecosystem's Contributors
The dYdX Foundation expresses deep gratitude to all DEP contributors and grant recipients who, over the past three years, have dedicated their time, skills, and creativity to strengthening the dYdX ecosystem. Their work has laid the foundation for continued growth, and this proposed transition aims to build on that legacy with a structure designed to meet the needs of the next chapter.
About the dYdX Foundation
Legitimacy and Disclaimer
Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.
dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain's infrastructure.
The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.
The dYdX Chain software (including dYdX Unlimited) is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components (including dYdX Unlimited) be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software (including dYdX Unlimited) or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software, i ncluding dYdX Unlimited (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited) “AS IS, WHERE IS”.
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. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.
Depositing into the MegaVault carries risks. Do your own research and make sure to understand the risks before depositing funds. MegaVault returns are not guaranteed and may fluctuate over time depending on multiple factors. MegaVault returns may be negative and you may lose your entire investment.The dYdX Foundation does not operate or has control over the MegaVault and has not been involved in the development, deployment and operation of any component of the dYdX Unlimited software (including the MegaVault).
Get Involved with the Community
Become a part of our journey to reshape the financial landscape
