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The dYdX Foundation, which supports the decentralized cryptocurrency exchange dYdX (DYDX), has requested a $30 million fund from the decentralized autonomous organization (DAO) to be spent over the next three years.
dYdX Foundation’s $30 Million Fund Request
As known, the Switzerland-based dYdX Foundation provides legal, R&D, marketing, and technical support to the crypto trading project that includes a perpetual futures exchange in the Cosmos and Ethereum ecosystems and a private Blockchain. The Foundation’s goal is to transform dYdX into “the exchange layer of the internet.” In line with this, the dYdX Foundation has requested a $30 million fund from the DAO to be spent over three years.
If the request is approved by dYdX token holders in the DAO, the Foundation will receive 4% of the DAO’s current treasury. This budget, to be used over three years, will exempt the dYdX Foundation from the obligation of presenting annual budgets for review and approval, a common practice among other DAOs and related foundations.
The request received full support from dYdX stakeholders, from validators to delegates, when it was first shared by the dYdX Foundation last week. Now, a vote will take place until February 2nd.
$30 Million Fund to Be Used for Various Purposes
About half of the requested budget will be allocated to developer salaries, 18% to marketing and growth, 14% to various legal payments, and 5.5% to contractors among other items.
The dYdX Foundation has committed to managing the money responsibly through “capital preservation” strategies that reduce risk, as mentioned in a forum post. The Foundation had shifted from USD Coin (USDC) to treasury bonds following the stablecoin de-pegging incident caused by the banking crisis in March of last year. This move, although a step away from crypto, reduced risk and tripled returns.
The Foundation will diversify part of the funds obtained into fiat and stablecoins and will also invest to expand its staking operation, which currently generates returns from 2.5 million dYdX tokens. The $30 million to be obtained will include 10.5 million DYDX tokens and will extend the Foundation’s operational scope beyond 18 months.
The dYdX Foundation’s next budget request will come after 18 months, which is expected to be around the middle or end of 2026. The Foundation aims to publish an annual report detailing the use of funds and a semi-annual report instead of annual budget votes.
