The dYdX Foundation, backing the decentralized exchange dYdX, has proposed a $30 million funding from its DAO to support operations for the next three years. This initiative aims to further develop the exchange, which operates within the Cosmos and Ethereum ecosystems, and to establish it as the foundational exchange layer of the internet.
dYdX Foundation’s Strategic Financial Plan
The funding, amounting to 4% of the DAO’s treasury, would allow the Foundation to bypass the usual annual budget reviews, streamlining its financial operations. The proposal has garnered unanimous backing from the dYdX community, with a vote set to conclude on February 2nd.
The allocation of the $30 million includes substantial investment in developer salaries, marketing, legal fees, and contractor services. The Foundation emphasizes responsible financial management, having previously shifted from USDC to treasury bonds to mitigate risk and enhance returns.
The Foundation plans to diversify its assets into fiat and stablecoins, and to bolster its staking operations, which already yield returns from 2.5 million dYdX tokens. The proposed fund would extend the operational runway of the Foundation well beyond the current 18-month period.
Looking ahead, the dYdX Foundation intends to present its next funding request in 18 months, with a commitment to transparency through annual reports and semi-annual updates, rather than yearly budget votes.