dYdX proposal to bridge the Ethereum community and reward funds to the dYdX chain has passed

The dYdX proposal to bridge the Ethereum community and reward funds to the dYdX chain has been approved. This strategic move will grant governance rights to the dYdX chain, which will be used to fund launch incentive programs, launch the dYdX chain insurance fund, distribute trading rewards, and support various initiatives of the dYdX DAO. The proposal details a four-step migration process. After a successful snapshot vote, steps one, two and four will require on-chain voting under the Short TimeLock executor. 1. Reducing v3 rewards: The rewards will be reduced by 1/3 for each epoch from Epoch 30-32, in which most of ethDYDX will be retained in Ethereum to be used to meet the three epochs of v3 rewards. 2. Upgrade the fund contract: Community and reward funds will be upgraded to the TreasuryBridge smart contract, and their receiving address will be set to the destruction address, effectively destroying all unlocked ethDYDX. 3. Reward distribution: dYdX chain validators will distribute DYDX to the community and reward funds based on the amount of ethDYDX destroyed from the Ethereum reward funds and community funds in step 2. 4. Migrate the unlocked ethDYDX: This step involves calling the bridgeTreasury function with upgraded funds to migrate the unlocked ethDYDX to the dYdX chain. This includes migrating the entire community treasury to the dYdX chain and transferring a portion of the reward funds into the community treasury. The exact amount of DYDX requested from the reward funds will be subject to governance approval. The proposal does not involve governance actions on the dYdX chain itself. Actions such as funding v4 to unlock accounts will be considered separately through the governance process after the chain’s mainnet launches.