dYdX Transitions to Public Benefit Corporation

blockchain.news:

In a bid to realign its organizational structure with the broader interests of the web3 community, dYdX Trading Inc. has amended its charter to transition into a Public Benefit Corporation (PBC). This change was publicly announced on 17 October 2023 by Antonio, the founder of dYdX, through a series of tweets. The key objective behind this transition is to foster economic and technological advancements globally, especially by democratizing access to financial opportunities through decentralized and open-source crypto asset exchanges among other technologies.

Antonio divulged that dYdX's new status as a PBC will not alter its for-profit nature. However, it does enable the board and himself to focus not just on maximizing shareholder value but acting in the public interest. This strategic shift reflects a growing commitment to aligning with the builders, traders, and stakeholders within the web3 community, beyond just the shareholders. dYdX views this transition as an innovative step not only in product and technology but also in legal and organizational structure, marking a historic moment in the decentralized finance (DeFi) sector. This is noted to be the first instance where a major DeFi corporation has morphed into a Public Benefit Corporation.

The amendment to the charter articulates the specific public benefit that dYdX aims to promote. In Antonio’s words, “The specific public benefit to be promoted by this corporation is building and supporting protocols that, and industry members who, promote and facilitate economic or technological advancement of the global community, including but not limited to the democratization of access to financial opportunity through open source and decentralized crypto asset exchanges