Crypto News– The dYdX Foundation, which supports the decentralized crypto exchange dYdX, has submitted a funding request of $30 million to the project’s governing decentralized autonomous organization (DAO), intending to utilize the funds over the next three years.
dYdX Foundation Asks for 30M Dollars Budget, Promises Annual Financial Report
Based in Switzerland, the dYdX Foundation offers legal, research and development (R&D), marketing, and technical assistance to the crypto trading initiative. This encompasses a perpetual futures contract exchange and specialized blockchain within the Cosmos and Ethereum ecosystems. The Foundation’s ambition is to propel dYdX into becoming “the exchange layer of the internet,” as outlined in its proposal. This budget request holds significant weight; if approved by dYdX tokenholders, who act as voters within the DAO, it would allocate 4% of the DAO’s current treasury. Moreover, with a three-year duration, it would exempt the dYdX Foundation from the customary annual budget submission and review process observed by other DAOs and their associated foundations.
dYdX Foundation Seeks 30M Dollars Funding, Vows to Issue Annual Report on Expenditures
Upon initial sharing of the request last Friday, it garnered widespread support from various dYdX stakeholders, including validators and delegates. The proposal is now slated for voting, scheduled to run through February 2.
Of the total requested budget, nearly half is earmarked for payroll expenses, with 18% designated for marketing and growth initiatives, 14% for legal expenditures, and 5.5% for contractor fees, among other allocations.
In a forum communication, the Foundation underscored its commitment to prudent financial management through “capital preservation” measures aimed at risk mitigation. Following the stablecoin de-pegging triggered by the banking crisis in March, it diversified its holdings away from USDC and into treasury bonds. While this move may seem to veer away from the crypto sphere, it nonetheless reduced risk and tripled yields.
Additionally, the Foundation intends to diversify a portion of the acquired funds into fiat currency and stablecoins, alongside investing in the expansion of its staking operations. Currently, it earns staking yield on 2.5 million dYdX tokens, with the $30 million funding request aiming to encompass 10.5 million DYDX tokens, thus extending the Foundation’s operational runway beyond 18 months.