Fee Structure & Tokenomics Research

Overview

dYdX Grants is seeking proposals from experienced research teams to conduct a two-phase analysis to support potential changes to the protocol’s fee structure, incentive programs, and tokenomics. This RFP aims to surface data-driven recommendations that can be translated into actionable governance proposals. Research will play a critical role in guiding long-term sustainability and economic alignment for the dYdX protocol and its community.

Objectives

The goal of this engagement is to generate a comprehensive, evidence-backed report and governance proposals to change key areas within dYdX protocol design, including fee tier structures, rewards distribution, and DYDX token’s utility.

In Phase 1, research will focus on short-term improvements and optimizations to specific protocol parameters. Phase 2 will take a broader view to evaluate incentive alignment, revenue sharing, and tokenomic redesigns.

The objective is to design sustainable, incentive-aligned economic mechanisms that improve protocol attractiveness, increase usage and trading volume, and strengthen the long-term value proposition of participating in the dYdX ecosystem.

Scope of Work

Phase 1 will require analysis of potential areas of change to protocol design, which may include:

• The “C” constant, which governs protocol-level trading rewards;
• Fee tier structure; and
• Discount mechanism for trading fees.

The Phase 1 report should be completed within a 30-day timeframe and presented to the dYdX community for discussion and potential on-chain governance approval.

Phase 2 will focus on broader economic design, and should assess:

• The effectiveness of the current incentive design and Buyback Program;
• The sustainability of the existing revenue-sharing model; and
• Opportunities for long-term improvements to the protocol’s tokenomics.

The Phase 2 report should be completed within an 8–12 week timeframe and also presented to the community for feedback and governance actions.

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