The people shaping dYdX’s v4 chain after October 2026
The dYdX v4 network relies on a top 60 validator set and community governance to manage 194 markets. Following Proposal #313, the protocol uses 75% of net fees for DYDX buybacks to ensure long-term sustainability.
Validator roles and orderbook mechanics
The top 60 validators by total stake control the dYdX v4 network using a shared in-memory orderbook. These participants propose blocks, validate transactions, and manage network uptime. Because the orderbook lives off-chain within this validator set, the top 60 participants monitor all orders for matches before they include the matched trades in new block proposals to ensure the system stays performant. If a validator double-signs blocks or suffers extended downtime, the protocol slashes a portion of their bonded stake. This slashing includes the funds of delegators, which increases the pressure to select reliable validators. Validators also earn a share of protocol rewards, primarily in USDC, and charge commission rates on their delegators’ earnings between 5% and 100%. The network relies on CometBFT for fast block finality and secure proof-of-stake consensus. These validators act as the backbone of the system to ensure the 194 active markets across crypto, real-world assets, commodities, and FX remain operational.
| Feature | Specification |
|---|---|
| Active Validator Set | Top 60 by total stake |
| Consensus Mechanism | CometBFT (Tendermint) |
| Staking Rewards | 15% of net protocol fees (USDC) |
| Buyback Allocation | 75% of net protocol fees |
| Treasury/MegaVault | 5% each |
Community governance and token distribution
Community members drive protocol changes using the Cosmos SDK governance module. One token equals one vote. Users submit proposals with a token deposit and participate in voting periods, which currently last four days. The network uses these votes to adjust fee schedules or add new markets. Since November 2025, governance changed the fee split to prioritize the DYDX buyback program. This program uses 75% of net protocol fees to buy DYDX on the open market and stake those tokens. This change follows Proposal #313, which passed with 59% approval. The total supply of 1 billion DYDX saw its final scheduled cliff unlocks complete in June 2026, and supply growth from scheduled tranches stopped after that date. You should watch how validator concentration shifts after the March 2026 proposal to reduce the active set to 31. The protocol allocates 15% of net protocol fees to USDC staking rewards, while 5% goes to MegaVault and another 5% goes to the Treasury SubDAO to support ecosystem growth. The community treasury holds approximately 261 million DYDX, with 6% earmarked for growth and adoption. Currently, the network supports over 98,000 DYDX holders and more than 33,000 active stakers. The revenue split, which governance approved and took effect in November 2025, remains a core component of the protocol’s sustainability.
The Foundation and leadership transition
The dYdX Foundation in Zug, Switzerland, manages ecosystem growth and research. Its Council includes Arthur Cheong, Rebecca Rettig, and Markus Spillman. The Foundation does not run the v4 software or control the infrastructure. Antonio Juliano holds the roles of chairman and president after returning to leadership in late 2024. He works with CEO Ivo Crnkovic-Rubsamen to manage day-to-day operations. The company underwent a 35% workforce reduction in October 2024 to sharpen strategic focus. The Treasury SubDAO manages its own funds via community decisions. The Foundation uses its treasury to support research, development, and marketing. It also handles the deployment of governance smart contracts and the issuance of governance tokens. The Foundation aims to hire and retain an A-player team to support the ecosystem. It also facilitates technical and strategic integrations for the dYdX Chain infrastructure. The Foundation also engages with businesses, partners, regulators, and other third parties to benefit the ecosystem. In February 2024, the community approved a proposal to allocate $30 million in DYDX from the treasury to the Foundation. This funding provides three years of runway to support the strategic roadmap. The Foundation’s purpose involves fostering participation from others who seek to support or grow any aspect of the ecosystem. This effort helps push the dYdX Layer 2 Protocol towards community-led growth, development, and self-sustainability by enabling all users to participate in the protocol’s future. Will the Treasury SubDAO maintain its current operational independence as the protocol matures?
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