DYDX token first became available for purchase in September 2021.

DYDX is an [ERC-20](https://coinmarketcap.com/alexandria/glossary/erc-20) token deployed on the [Ethereum](https://coinmarketcap.com/currencies/ethereum/) mainnet. dYdX’s layer 2 scaling solution is built on StarkWare’s ZK-STARKS technology and relies on Ethereum blockchain to verify transaction proofs.

A total of 1,000,000,000 ethDYDX have been minted, and started to become accessible over five (5) years, on August 3rd, 2021, at 15:00:00 UTC. The five-year allocation of the total supply of ethDYDX was initially as follows: - 27.7% is allocated to Investors - 14.5% is allocated to User Trading Rewards - 15.3% is allocated to Employees and Consultants of dYdX Trading or Foundation - 5.0% is allocated to Retroactive Rewards - 5.2% is allocated to Liquidity Provider Rewards - 7.0% is allocated to Future Employees & Consultants of dYdX - 24.2% is allocated to Community Treasury - 0.6% is allocated to Liquidity Staking Pool - 0.5% is allocated to Safety Staking Pool Since the launch of ethDYDX, several governance proposals have resulted in changes to the initial allocation. The updated allocation as of the start of Epoch 31 (December 19, 2023) is reflected in the pie chart below. The updated allocation of ethDYDX tokens as of the start of Epoch 31 (December 31, 2023) is as follows:

dYdX Layer 2 increases scalability of the network through use of a form of [zero-knowledge rollup](https://coinmarketcap.com/alexandria/glossary/zero-knowledge-rollup) — zkSTARKS. The technology receives proofs, while validating a batch of transactions off-chain. These proofs are then sent back to the blockchain, where they are verified by a smart contract. zkSTARKS makes it possible to remove expensive computations from the mainnet with no sacrifices in decentralization.

Antonio Juliano — an experienced programmer with a background in blockchain technology is the founder and CEO of dYdX Trading Inc. He first entered the crypto space in 2015 upon getting a job as a software engineer at [Coinbase](https://coinmarketcap.com/ru/exchanges/coinbase-exchange/) — a cryptocurrency exchange platform. As a Princeton University graduate with a degree in computer science, Antonio Juliano embarked on his entrepreneurial journey and founded dYdX in early 2017 .

Ethereum-based DYDX ($ethDYDX) is a governance token that allows the dYdX community to truly govern the dYdX Layer 2 Protocol built on Ethereum ("dYdX v3"). ethDYDX is currently undergoing a migration from Ethereum to the dYdX Chain. More information is available [here](https://www.dydx.foundation/blog/update-on-exploring-the-future-of-dydx). If you want to migrate ethDYDX to dYdX Chain DYDX, to enable staking, security and governance of the dYdX Chain you can follow the how-to-bridge guide [here](https://www.dydx.foundation/how-to-bridge/overview). If you want to read about the new token utility for dYdX Chain DYDX you can read the blog [here](https://www.dydx.foundation/blog/dydx-token-mechanics) [ethDYDX (dYdX)](https://coinmarketcap.com/currencies/dydx/) is the governance token for the [layer 2](https://coinmarketcap.com/alexandria/glossary/layer-2) protocol built on Ethereum. By enabling shared control of dYdX v3, ethDYDX allows traders, liquidity providers, and partners of dYdX to work collectively towards an enhanced dYdX v3. Built on [StarkWare’s](https://starkware.co/) StarkEx scalability engine, layer 2 is used for trading of cross-margined perpetuals on the platform. The scaling solution allows dYdX to increase transaction speed, eliminate gas costs, reduce trading fees and lower​​ minimum trade sizes on the protocol. A total of 1,000,000,000 ethDYDX have been minted, and started to become accessible over five (5) years, on August 3rd, 2021, at 15:00:00 UTC.