The decentralized derivatives exchange dYdX launched its governance token, DYDX, in August 2021, marking a major milestone in its transition toward community-driven governance. With a total supply of 1 billion tokens, DYDX plays a vital role in protocol decision-making and offers users benefits such as fee discounts and staking rewards.
This guide breaks down the five key ways to earn DYDX tokens—whether you're a past user, active trader, liquidity provider, or long-term supporter of the ecosystem.
Understanding the DYDX Token Distribution
Before diving into how to earn DYDX, it's essential to understand how the tokens are allocated:
- 50% to the community (500 million tokens)
- 27.73% to past investors
- 15.27% to founding team members
- 7% to future team members
The community allocation is further divided among various participation mechanisms, making it possible for different types of users to benefit.
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1. Retroactive Mining (For Early Users)
One of the most unique aspects of the DYDX launch was the retroactive mining program, designed to reward early adopters who interacted with any version of dYdX—whether on Layer 1 (spot, margin, perpetuals) or Layer 2 (perpetual contracts).
Who Qualifies?
- Users who traded or deposited USDC into dYdX’s lending pool before July 26, 2021.
- A total of 36,203 addresses were eligible based on a historical snapshot.
Key Rules
- To claim rewards, users had to meet minimum trading volume requirements on dYdX Layer 2 during the first 28-day period ("Epoch 0").
- Any unclaimed tokens at the end of this period were reallocated to the community treasury.
- The first unlock occurred on September 8, 2021, releasing approximately 8.11% of total supply into circulation.
This program was exclusively available to non-U.S. users due to regulatory restrictions.
2. Trading Mining (For Active Traders)
Active traders can earn DYDX by simply using the dYdX platform. This program distributes 25% of the total supply (250 million tokens) over five years through a 28-day epoch system.
How It Works
- Each epoch distributes 3,835,616 DYDX tokens.
- Rewards are calculated based on your share of total trading fees and open interest during the period.
- You can track your progress in real time at
trade.dydx.exchange/portfolio/rewards.
Claiming Your Rewards
- Users can claim their DYDX rewards 7 days after each epoch ends.
- Past reward history is available at
dydx.community/history/rewards.
This incentivizes consistent trading activity and helps grow platform volume organically.
3. Market Maker Mining (For Professional Liquidity Providers)
To ensure deep liquidity and tight spreads, dYdX offers a dedicated mining program for professional market makers.
Eligibility Criteria
- Must provide more than 5% of total order book liquidity in a given epoch.
- Open to any Ethereum address meeting the threshold.
Reward Structure
- 7.5% of total supply (75 million tokens) distributed over five years.
- Each epoch releases 1,150,685 DYDX tokens.
Rewards depend on:
- Depth of book contribution
- Bid-ask spread tightness
- Uptime and number of supported trading pairs
Market makers claim rewards via dYdX’s API after each epoch.
Approved initial market makers included Wintermute, Amber Group, Kronos, Sixtant, and DAT Trading—firms known for their strong presence on Layer 2 protocols.
4. Liquidity Staking Pool (Stake USDC)
Users can stake USDC in the liquidity pool to earn DYDX rewards while supporting protocol stability.
How to Participate
- Approve dYdX to use your USDC.
- Deposit into the pool at
dydx.community/dashboard/pools/liquidity. - Earn rewards proportional to your share of the total pool.
Flexibility & Withdrawals
- You can join or exit anytime.
- To withdraw at the end of an epoch, you must initiate unstaking at least 14 days before epoch end.
- If no action is taken, your stake automatically rolls over.
This mechanism supports decentralized lending and ensures sufficient capital for margin trading.
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5. Insurance Staking Pool (Stake DYDX)
Launched on September 8, 2021, this pool allows users to stake their DYDX tokens to help secure the protocol and earn additional rewards.
Purpose
Acts as a decentralized insurance fund that can cover losses in extreme market conditions.
Participation Steps
- Approve dYdX to use your DYDX.
- Stake via
dydx.community/dashboard/pools/safety. - Rewards are distributed in real time based on your relative stake.
Withdrawal Rules
Same as the USDC pool: request unstaking 14 days before epoch end to avoid rollover.
This creates alignment between token holders and protocol safety—encouraging long-term commitment.
Frequently Asked Questions (FAQ)
Q: Can U.S. residents claim DYDX tokens?
No. Due to regulatory compliance, retroactive mining and certain staking programs are not available to users in the U.S. or other restricted jurisdictions.
Q: When do I receive my DYDX rewards from trading mining?
You can claim your rewards 7 days after each 28-day epoch ends. They do not auto-transfer—you must manually claim them through the rewards dashboard.
Q: Is there a minimum stake amount for liquidity pools?
There is no official minimum, but smaller stakes yield proportionally smaller rewards. Gas fees should be considered when staking small amounts.
Q: What happens if I don’t unstake before the deadline?
If you fail to request unstaking at least 14 days before epoch end, your funds will automatically roll over into the next epoch.
Q: Are DYDX tokens vested or locked?
Yes. Most earned or airdropped tokens are subject to vesting schedules tied to epochs. Full liquidity increases gradually over time.
Q: Where can I vote on governance proposals?
Visit dydx.community/dashboard to view active proposals and cast votes using your staked DYDX balance.
Core Keywords
- dYdX governance token
- DYDX mining
- How to get DYDX
- dYdX staking
- Trading mining
- Liquidity staking pool
- Retroactive mining
- Decentralized derivatives
Final Thoughts
Earning DYDX is more than just claiming free tokens—it's about becoming an active participant in one of the leading decentralized derivatives platforms. Whether you're trading, providing liquidity, or helping secure the network, there’s a way for you to contribute and be rewarded.
As dYdX continues evolving under community governance, early engagement could offer both financial and strategic advantages.
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