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Antoni Pawlak
Antoni Pawlak

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dYdX Governance Mechanism

Who controls dYdX bridge ?

Ownership

Logic

voting power is held by dydx token owners

the proposal goes through stages Pending => Active => Succeeded => Queued => Executed

Proposal creation 

DydxGovernor.create(...)
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Requirements for creation 

PriorityExecutor.validateCreatorOfProposal()
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What is being checked 
GovernanceStrategy.getPropositionPowerAt() >= getMinimumPropositionPowerNeeded()
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getMinimumPropositionPowerNeeded() 
GovernanceStrategy.getTotalPropositionSupplyAt(blockNumber)
        .mul(PROPOSITION_THRESHOLD)
        .div(ONE_HUNDRED_WITH_PRECISION)
//PROPOSITION_THRESHOLD = 50
//ONE_HUNDRED_WITH_PRECISION = 10000
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current proposal threshold is 0.5%

so anyone with at least 0.5% of total supply of dydx token can create a proposal

Voting result

voting succeeds when

PriorityExecutor.isProposalPassed() && executionTime = 0`
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it means the proposal was voted for by a majority and was not yet executed, now it can be enqueued for execution

What is being checked 

isQuorumValid(governance, proposalId) && isVoteDifferentialValid(governance, proposalId)
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isQuorumValid 
proposal.forVotes >= getMinimumVotingPowerNeeded(votingSupply)
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getMinimumVotingPowerNeeded() 
votingSupply.mul(MINIMUM_QUORUM).div(ONE_HUNDRED_WITH_PRECISION)
//MINIMUM_QUORUM=200
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current minimum quorum is 2%

isVoteDifferentialValid 
proposal.forVotes.mul(ONE_HUNDRED_WITH_PRECISION).div(votingSupply) > proposal.againstVotes.mul(ONE_HUNDRED_WITH_PRECISION).div(votingSupply).add(VOTE_DIFFERENTIAL)
//VOTE_DIFFERENTIAL=50
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current VOTE_DIFFERENTIAL is 0.5%

Execution

when the vote succeeds it can be executed by executor

dydx token

The token contract is at 0x92d5

Current total supply is 1,000,000,000
Minimum amount to create proposal is 5,000,000
Minimum quorum is 20,000,000

dydx token info

there are:

  • 21 addresses who can create a proposal
  • 8 addresses that can singlehandedly push proposal (if no other address votes)

dydx whales

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