The dYdX DAO voted to give out $1.5 million in DYDX coins to token holders

The dYdX DAO voted on Sunday to give out $1.5 million in DYDX coins to token holders to boost adoption.

Members of the dYdX DAO have voted in favor of giving out $1.5 million in DYDX coins to token holders to boost adoption.

On-chain voting started last Thursday, March 27, and majority members (94.17%) voted in favor of the incentive program on Sunday.

The vote passed. The community has voted to distribute $1.5M in $DYDX from the dYdX Chain Community Treasury to qualifying users as part of season 10 of the Launch Incentives Program.

The dYdX Foundation announced an on-chain vote in which community members were to engage. The incentive program plans to distribute $1.5 million in DYDX coins from the dydx treasury to eligible users.

The integration aims to reward users for their participation in the dydx ecosystem. With the vote, which was passed on Sunday, the incentive program will therefore allocate DYDX tokens to incentivise participation and use of the dydx platform.

While offering tokens to reward is a common strategy to attract users and liquidity at DeFi projects, some market analysts criticize it as an inefficient approach. They claim that this tactic attracts users who come to collect free coins and then move on to other projects once the incentives end.

This buyback program allocates 25% of the protocol’s net fees to repurchase DYDX tokens from the open market every month. As per 2024 revenue metrics, this strategy could to lead a remarkable $11 million worth of DYDY tokens repurchased annually.

This plan is part of a wider commitment to strengthen the token’s role in the protocol’s security and economic model amid an extended downturn for

, which has seen its price fall by 78% in the past year.