1/ Case Study: @dYdX Staking Programme
In 9 months, dYdX deployed 79M DYDX through a structured treasury programme.
➖ Secured the chain
➖ Coordinated 42 validators
➖ Generated 7-figure yield
➖ Demonstrated the Fat App Thesis
This is how it was built 👇
2/ Context
dYdX launched its own chain in 2023, committing to full-stack control.
In 2024, it needed a way to utilize the DAO treasury to secure the network, create sustainable on-chain yield while growing its ecosystem, and align long-term validator incentives.
That’s where the Treasury SubDAO, managed by kpk, came in.
3/ Establishment
➖ Cayman Foundation created
➖ Validator criteria defined to align incentives
➖ Staking Programme launched
➖ 45M DYDX delegated to 34 validators
➖ ~$365K in revenue generated in the first month
4/ Expansion
➖ Recalled 20M DYDX from Stride to consolidate staking under Treasury SubDAO
➖ Validator set expanded to 42
➖ Redelegations optimized based on performance & feedback
➖ Enabled USDC yield deployment via MegaVault
5/ Value Accrual
➖ Launched a Buyback & Stake program
➖ 25% of net protocol revenue used to buy DYDX
➖ Staked repurchased tokens in the Staking Program
➖ Tightens token supply while boosting chain security
6/ The impact was clear: 2.5M DYDX was bought back on the open market (~$1.2M in value), helping drive staking participation from 29% to 36% of total supply between April and June.
By the end of May, ~270M DYDX was staked, alongside a noticeable improvement in validator activity and performance.
7/ On-the-ground impact
The feedback from validators like @CosmostationVD has been extremely positive.
The programme didn’t just deploy capital — it set standards, aligned incentives, and raised the bar for securing the dYdX Chain.
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