Simple Summary
The next software upgrade includes a Sliding Affiliate Fee Feature that will enable “the dYdX Community to replace the current VIP tier with a more rewarding program. This gives higher-volume referrers proportional rewards for their contributions.”
After the next protocol upgrade, we propose setting the parameters to enable a sliding affiliate fee structure that rewards affiliates proportionally based on their referred trading volume over a 30-day rolling period. This change replaces the static VIP tier system with a dynamic, volume-based model that adjusts affiliate commission rates between 30% to 50%, depending on performance.
Abstract
The dYdX Chain software v9.4 enables the community to implement a sliding affiliate fee feature, transitioning from the current fixed VIP affiliate system to a volume-based structure.
We propose the following structure:
- Affiliates begin at a 30% revenue share.
- Once their 30-day trailing referred trading volume exceeds $1M, their commission increases to 40% for the following 30 days.
- If they exceed $10M in trailing 30-day volume, they earn 50% for the next 30 days.
- If the affiliate’s trailing 30-day volume falls below a given threshold, the commission rate adjusts downward accordingly.
This mechanism encourages consistent affiliate engagement and long-term volume growth while maintaining fairness and flexibility.
Motivation & Rationale
The current VIP affiliate model relies on static tiers that do not adequately reflect ongoing contribution levels. By introducing a sliding, automated mechanism, this proposal aims to:
- Reward high-performing affiliates proportionally to their sustained impact on ecosystem volume.
- Encourage continuous referrals, as affiliates must maintain thresholds to preserve higher commission rates.
- Simplify governance overhead by automating affiliate tier adjustments without the need for VIP affiliate whitelisting proposals.
- Enhance fairness by allowing all affiliates to access higher commission levels upon achieving corresponding volume milestones, thereby eliminating the need for separate VIP classifications.
This aligns incentives across the community and improves retention of productive partners.
Specification
We propose implementing a sliding affiliate fee structure that rewards affiliates proportionally based on their referred trading volume over a trailing 30-day period.
An affiliate’s commission rate for the next 30 days is determined by the total referred trading volume generated in the preceding 30 days, according to the following tiers:
| 30-Day Referred Volume | Commission Rate |
|---|---|
| Up to $1,000,000 | 30% |
| Between $1,000,001 and $10,000,000 | 40% |
| Above $10,000,000 | 50% |
Next Steps
We’d invite dYdX Community to provide feedback on this proposal. The proposal will be submitted once the dYdX Chain Software Upgrade v9.4 is implemented.