Retroactive Mining

TLDR

• As mentioned in the launch announcement, $DYDX has been allocated to past users of all dYdX protocols (who reside in a jurisdiction where $DYDX is permitted based on our Terms of Use) according to a snapshot ending on July 26, 2021 at 00:00:00 UTC.
• If you are eligible, you can view your allocation amount and the volume goal required to unlock this full amount on the Rewards tab here. You can start trading towards unlocking your allocation now on the Layer 2 exchange here.
• If you are eligible, you can claim the unlocked portion of your allocation starting on September 8, 2021 at 15:00:00 UTC using the governance dashboard here. $DYDX tokens will also become transferable around this time.

Motivation

Robust and community-led governance requires an engaged & active community to own a significant stake in $DYDX. The best place to start building community governance is with the dYdX Protocol's past and existing users. Retroactive mining allocates a significant share of $DYDX to these past and existing users, enabling them to be the core, early participants of dYdX governance.

The dYdX Protocol has succeeded due to its past and current users. By rewarding them with a significant portion of the $DYDX supply for their past & future usage, strong community governance can be built while driving growth and engagement to the dYdX Protocol.

How it works

$$7.5%$$ (or $$75,000,000$$ $DYDX) of the maximum supply of $DYDX has been allocated to the retroactive mining program.

Allocations of $DYDX have been made to historical users of dYdX protocols (except for users located in a jurisdiction where $DYDX is not permitted, including the United States) based on a snapshot ending July 26, 2021 at 00:00:00 UTC. There are five allocation tiers which take into account a user's past activity across all dYdX protocols. Each eligible user is assigned to one tier based on their past usage.

To claim $DYDX, historical users must meet their corresponding claim milestone on Layer 2 Perpetuals within the first 28-day epoch ($$Epoch 0$$).

Why mining?

The dYdX Protocol should be governed by its users. For this reason, it is imperative to optimize for holders of $DYDX to be active users of the dYdX Protocol.

The dYdX Protocol has changed significantly over the past three years. Initially starting with leveraged tokens, then lending, margin, and spot trading, and now primarily focusing on derivatives — specifically, perpetuals. Derivatives represent a different market and degree of sophistication from previous products, so recipients of retroactive mining rewards should understand and have used the current dYdX Layer 2 Protocol.

Token rewards are an exceptional growth tool, and reactivating past users is a tested growth strategy. By linking reward allocations to usage of the current product, the dYdX Layer 2 Protocol can grow by giving past users a strong incentive to try it out, while ensuring all of the initial token holders are users of the dYdX Layer 2 Protocol.

Unlocking tokens

Past dYdX users can view their past activity and tier for Retroactive Mining here. To earn $DYDX, users must trade on the dYdX Layer 2 Protocol to meet their criteria threshold.

To claim the full allocation of $DYDX tokens, users must meet their specific target volume tier trading perpetuals on the dYdX Layer 2 Protocol.

Earned retroactive rewards are linearly claimable with the target volume. For example, if a user’s claim milestone is $5,000 in trading volume on the dYdX Layer 2 Protocol but the user only trades $2,500 in volume over the course of $$epoch 0$$, the user will only be able to claim 50% of the allocated reward.

Any unclaimed $DYDX at the end of the $$epoch 0$$ will be forfeited and automatically distributed to the community treasury.

Claiming tokens

Earned $DYDX tokens via the Retroactive Mining Rewards will become claimable and transferable once the initial transfer restriction period is lifted.

On approximately September 8, 2021 at 15:00:00 UTC, 8 days after the end of $$Epoch 0$$, the initial transfer restrictions will be lifted and earned $DYDX tokens via the Retroactive Mining Rewards can be claimed, withdrawn, transferred, or delegated.

Any unclaimed $DYDX at the end of the $$Epoch 0$$ will be forfeited and automatically distributed to the community treasury.

Summary

• Read the documentation for more details on Retroactive Mining.
• Go here to check your allocation of $DYDX and claim milestone.
• Eligible users (who reside in a jurisdiction where $DYDX is permitted based on our Terms of Use) have been allocated $DYDX based on their usage of dYdX protocols, according to a snapshot ending on July 26, 2021 at 00:00:00 UTC.
• If you are eligible, you can view your allocation amount and the volume goal required to unlock this full amount on the Rewards page. You can start trading towards unlocking your allocation now on the Layer 2 exchange.
• If you are eligible, you can claim the unlocked portion of your allocation starting on September 8, 2021 at 15:00:00 UTC using the governance dashboard. $DYDX tokens will also become transferable around this time.