The dYdX Foundation has asked for $30 million in funding from its governing decentralized autonomous organization (DAO). This budget, aimed at being utilized over three years, shows the strategic importance of approving the foundation’s support and development initiatives for the dYdX trading platform.
The dYdX Foundation, crucial for legal, R&D, marketing, and technical support, significantly contributes to developing the dYdX project. This project offers an ongoing futures trading platform and operates on both the Cosmos and Ethereum networks.
The foundation aims to develop dYdX into a unique online exchange platform, increasing its worldwide accessibility and effectiveness. If approved by the DAO’s stakeholders, the proposed budget would account for 4% of the DAO’s current treasury.
This funding approach departs from the typical annual budget submissions, offering the foundation an extended operational runway and financial stability.
The proposal will now go to a vote running through February 2. It has already seen a favorable reception among various stakeholders, including validators and delegates, demonstrating confidence in the foundation’s strategic direction. However, it hasn’t reached its Quorum yet, which is 33.4% of the community.
The distribution of the funds is carefully organized, with almost half designated for staff salaries. Significant amounts are also set aside for marketing, legal costs, and payments to contractors.
The Foundation emphasizes responsible financial management, notably through its diversification strategies. This includes putting money into government bonds and maintaining a diverse combination of regular and stable digital currencies.
Moreover, the Foundation plans to approve its staking operations, a key component of its revenue generation model. The plan expects that the funding will allow the foundation to operate for much longer than the usual 18 months, with plans to propose the next budget around the middle or end of 2026.
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