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DYdX Community Casted an Outlawing Vote in a Cushion of $60 Million Stake

In this post:

  • The dYdX community voted with a 91% approval rate to allocate $60 million worth of dYdX Chain tokens to Stride for staking
  • This strategic move is designed to create a feedback loop that reinvests revenue into buying more dYdX tokens.

 

 

 

A game-changer resolution made by the governance community in the secure DeFi platform dYdX in cooperation with decentralized derivatives exchange is the assignment of the largest portion of treasury funds, which goes to reinforce the security of the platform. Therefore, before it, dYdX Community will put up $60 million worth of 20 million dYdX Chain tokens in collateral with Stride, a Cosmos system provider for staking purposes. 

This initiative builds the economic viability of the group while nurturing a more diverse set of stakeholders within the network. The decision was resoundingly voted for, an approval rate of 91% among participants, and came to light as a clear indication of the community’s unshakable attention to the platform and determination towards its continuity.

Uncertainties and diversification of economic base

This essential financial transaction serves one core purpose which is to fortify the financial strength of the dYdX network. This is aimed at creating a self-sustaining and long-term business model. The locked-up tokens are supposed to provide USDC to revenue which will, in turn, be automatically re-invested by buying even more dYdX tokens. 

This feedback loop mechanism is built to ensure a continued ‘bi-directional force’ vital for the future growth and perpetuation of the network’s economy and the token’s value. In regards to this strategy, Antonio Juliano, the founder of dYdX explained this by illuminating the ongoing use of the fees to repurchase the DYDX tokens which are thereafter kept in the treasury and as such, strengthen the economic base of the site.

The identity and the interest of communities of place also have to get full recognition from the officials in the management of the natural resources through democratic consensus and planning.

It had every reason to be a difficult decision to take out this portion of $60 million from the treasury as it was a thoroughly weighed decision. It employed a democratic procedure, with the 21% and 81% respectively representing the ‘YES’ and ‘NO’ votes. The tremendous trust of the community manifested itself in the form of 91% support.

Stride’s initiative

Stride’s view on this project is vital. In the army of other staking service providers offering various incentives, one of the benefits of this partnership proposal is lower fees— which can be the decisive factor in consolidating the coin. By eliminating the fees, Stride has shown its dedication to the dYdX project and the goal to grow its participation in the project. The objective is to make them wealthier and for them to feel more engaged. This partnership sets the tone for the way collaboration between different stakeholders may also evolve as the core idea in the cryptosphere that everybody should have the same goal and become an example for other decentralized communities and independent by nature systems to follow.

Conclusion

The network participants’ willingness to place most of the fund’s resources into the system shows a perfect indicator for a system security, regardless of how you’ll looking in the scope of both short- and long-term time frames. This brings to the attention the local economy and interactive participation, hence, the efficiency of the regional governance is strengthened. The trend in the evolving platform, nevertheless, is a fundamental aspect that may provide a bright scenario for the future of the platform from the perspective of the diversified and high competition of the decentralized finances. However, this is indeed what holds the key to the success of the entire platform.

Note: The news was sourced from tweets of representatives of dYdX and Stride Platforms.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ryan Salame
Cryptopolitan
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