The purpose of the discussion was to enhance decentralization within the dYdX ecosystem in preparation for its v4 upgrade.
DYdX, the decentralized platform famous for its perpetual contracts, is currently exploring the idea of establishing additional subDAOs to further decentralize the management of its ecosystem.
A recent post by Fox Labs Digital, an Australian marketing agency, proposed the idea of assigning oversight duties to multiple smaller decentralized autonomous organizations (DAOs).
As the dYdX community gets ready to upgrade to its fourth version (v4) on the Cosmos blockchain, discussions are underway to expand beyond the existing two subDAOs. Currently, there is one for dYdX’s grants program and another for its operational activities. The objective is to transform dYdX into a fully decentralized version of the protocol, as stated in a blog post.
In another governance update shared by the dYdX Foundation, an independent non-profit organization focused on promoting decentralized governance, it was revealed that the operations subDAO is scheduled to conclude on June 19. With the upcoming release of v4 and the expiration of the operations subDAO, the dYdX ecosystem is approaching a crucial turning point, as highlighted by the foundation.
Fox Labs emphasized in the governance post that the objective is not only to shape the future of dYdX but also to establish a model for the effective and inclusive operation of a decentralized trading platform.
SubDAOs are teams of contributors within the dYdX DAO. Each SubDAO focuses on specific functional areas of the dYdX protocol and holds responsibility for their respective tasks. Ultimately, these SubDAOs are accountable to the dYdX community, as stated by the dYdX Foundation.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
