dYdX to Unlock 150 Million Exchange Tokens on December 1

The anticipated event for the dYdX exchange involves the release of 150 million DYDX tokens, a move representing 30% of the allocation reserved for investors and project members. Scheduled for December 1 at 3:00 AM MSK, this unlocking event stands as a significant milestone in accordance with the tokenomics of the project.

Originally slated for February 3 of the current year, the unlocking was postponed for nearly a year, causing a notable 30% surge in the asset's value by the end of January. Launched on August 3, 2021, a total of 1 billion DYDX tokens have been issued, with assets gradually being released from lockup over five years.

The token allocation designates 50% of the total supply or 500 million coins for participants within the first five years post-launch. A fraction of the initial distribution caters to early investors (27.7%), exchange staff – both current (15.3%) and future (7%), and the project treasury (24.2%). Additionally, 30.4% will be rewarded to users for trading activity and liquidity provision, with 1.1% earmarked for liquidity and security in staking pools.

As of November 27, the organization backing dYdX had already dispatched coins awaiting unlocking to investor addresses, including venture firms such as a16z, Defiance Capital, and Polychain Capital. However, on November 18, the exchange had to allocate $9 million from its insurance fund to cover user position liquidations due to manipulation of the YFI token's price. The dYdX team disclosed that an unidentified user, previously attempting similar manipulations on the SUSHI token, executed the attack.

At the time of writing, DYDX is trading at $3.25, experiencing a 7.8% decline within 24 hours.