The decision was finalized through a community vote, as dYdX proves once again the strength of its decentralized governance model.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
The dYdX Foundation has some news that could potentially impact the decentralized finance (DeFi) space. This follows after it approved a $4 million allocation to support the Developer Ecosystem Program (DEP) for the next 14 months.
Interestingly, the dYdX Foundation came to this funding decision after receiving overwhelming support to do so from its community. As detailed in the announcement shared moments ago on X, dYdX will be funding the program from the platform’s treasury subDAO.
Meanwhile, it might be worth noting that the DEP is an initiative that dYdX has placed so much trust in to help grow its ecosystem and maintain its relevance, particularly in the DeFi market.
To keep its competitive edge, the platform has been keen on providing resources and support to developers.
The latest decision was finalized through a community vote, as dYdX proves once again the strength of its decentralized governance model.
In the end, 43 out of 60 active validators and 813 accounts that participated all voted. Though the turnout was 57.38%, 75.02% voted in favor of the funding while 0.11% voted “No”.
There were also 24.87% abstain votes. However, the figures, which serve as proof of strong community backing, also show that the community is greatly confident in the DEP. More so, in the way that the program has the capability to drive growth within the dYdX ecosystem.
Expectedly, dYdX would use the $4 million funding to cover the program’s expenses. Those include grants and incentives for developers contributing to the platform’s infrastructure and tools. By securing this allocation, the DEP can now do more to empower many contributors and solidify dYdX’s position as a leading DeFi platform.
The big deal about significant budgets, such as this being approved, is that it shows the importance of developer support in the evolving DeFi space.
Just like dYdX, many other decentralized platforms also compete to offer innovative and user-friendly solutions. However, gaining a significant edge over one another might boil down to simply encouraging developers to build on their ecosystems.
Interestingly, dYdX may not really see the DEP as an expense. Rather, the program is looking more like an investment in its own future. That is because it doesn’t just align with dYdX’s vision to create a sustainable ecosystem. The program also creates an inclusive environment where developers, users, and stakeholders can all be successful together.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
