[DRC] Bridging the Community and Rewards Treasuries

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The dYdX community is moving its treasuries from Ethereum to the dYdX Chain to facilitate governance and fund initiatives, with a positive community response and successful snapshot vote for the transition from v3 to v4. Concerns about testnet issues and Hedgies were raised, but the overall sentiment is supportive, and next steps include an on-chain vote and further proposals on the dYdX Chain.

What is this about?

The discussion revolves around a proposal for the migration of the dYdX community and rewards treasuries from Ethereum to the dYdX Chain. This migration is part of the transition from dYdX v3 to v4 and involves a multi-step process that includes winding down v3 rewards, upgrading treasury contracts, and bridging vested ethDYDX tokens to the new chain. The proposal aims to enable governance on the dYdX Chain to fund various initiatives and ensure a smooth transition for users.

How is the community reacting?

The community's reaction to the proposal has been generally positive, with several members expressing support for the migration process and the importance of a well-planned bridging process for the dYdX ecosystem. Concerns were raised about unresolved testnet issues and the future of Hedgies, but the latter was not addressed in the context of the current proposal. The snapshot vote for the proposal was successful, and an on-chain vote on Ethereum was targeted for November 12th, with further steps to be proposed on dYdX Chain.

  • Jordi suggested a delay in implementation due to testnet issues2,3.
  • 0xCLR asked about unclaimed rewards, which will remain on Ethereum4,5.
  • CipherLabs inquired about Hedgies, which was not addressed6.
  • Iryna_everstake asked for clarification on validator instructions8.
  • Itublockchain supported the voting process and gradual reduction of rewards9.
  • Tane expressed strong support for the proposal10.
  • Luisqa discussed post-launch decisions on treasury bridging11.
  • XenophonLabs provided updates on the snapshot vote and the on-chain vote12,13,15.

Why this is positive?

  • The migration will enable dYdX Chain governance to fund various programs and activities promptly.
  • The proposal includes a gradual reduction of rewards to ensure a smooth transition for users.
  • The community has the opportunity to participate in governance decisions regarding the allocation of funds.
  • The successful execution of the DIP indicates a strong community governance process.

Why this is negative?

We have not been able to determine whether this will be negative.

Next actions

  • A separate proposal on dYdX Chain will address the crediting of burnt/unvested ethDYDX to the vester accounts, setting Trading Rewards parameters, and seeding the liquidation insurance fund15.
  • The community is encouraged to express interest in sponsoring or contributing to the dYdX Chain proposal12.

Posted 2 months ago

Last reply 13 days ago

Summary updated 10 days ago

Last updated 04/12 00:20