dYdX recently made a bold move—launching a $20 million incentive program to attract users to dYdX Chain. How is this money distributed? Traders and market makers are the main players.

Traders get the biggest share, with 70%-85% allocated based on trading fees. The more trading we do, the more incentives we can earn. Market makers have a more accessible entry threshold, needing only to handle 0.25% of trading volume to participate. This helps narrow spreads and build a thicker order book, making the market much stronger compared to the early "flash crash" thin liquidity.

Honestly, this isn’t just about throwing money around to grab attention. Looking at reality: during the initial launch, dYdX Chain’s trading volume was nearly zero, but through this incentive, users from v3 were pulled over, and on-chain trading volume skyrocketed to around $120 billion. Stakers received over $20 million USDC in rewards, and liquidity truly came alive, strengthening price support as well.

What’s even more interesting is the adjustment in the economic model. After migrating to the Cosmos application chain, all trading fees (in USDC) are 100% distributed to stakers—no middlemen taking a cut. Even the team and early investors must stake DYDX to earn rewards, effectively enforcing long-term holding. The estimated annualized yield is around 14.6%, and most importantly, this yield comes from real trading fees, not empty promises.