0x Governance Update #1

Highlights, metrics, and news about 0x governance

Welcome to the first-ever 0x governance update where we will share highlights, metrics, and news about 0x governance and our DAO.

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Since its launch, the project has been progressively decentralizing control of the 0x Protocol from the founding team โ€“ its initial stewards โ€“ to an ecosystem of incentive-aligned contributors and participants โ€“ its community.

In April, with the formal launch of the 0x DAO, the establishment of a community-owned treasury, and the allocation of voting power to a 0x DAO delegate group, the community gained substantial agency in setting the course for the protocolโ€™s future.

๐Ÿฆ 0x DAO Treasury

At the time of writing, the dollar value of the treasury exceeded $16M. In addition to the initial seed funding and subsequent matching funds from 0x Labs, we are extremely grateful to Polygon and Celo for their generous contributions.

Date Contributor(s) Token(s) Note
April 2021 0x Labs 2M ZRX Initial treasury seed
June 2021 Polygon,
0x Labs
4.2M MATIC / 3.3M ZRX Polygon #DeFiForAll Fund allocation + 0x Labs match
October 2021 Celo,
0x Labs
527.5k CELO / 1.2M ZRX Celo DeFi for the People initiative + 0x Labs match

We are excited about the opportunities these funds will unlock as we deploy them towards growing awareness, adoption, and usage of the protocol.

๐Ÿ’ธ Grant Awards

As a first step in deploying treasury funds, a small group of long-time contributors proposed the establishment of an Ecosystem Value Experiment (0xEVE), with the goal of actively driving value creation and capture for the protocol. The community approved, and 0xEVE quickly rolled out a grant program and sought out projects to fund.

Since July 2021, the 0x DAO has awarded ~$1.2M in grant funding:

Recipient Grant Note
Thales $50k Integrate 0x permissionless orderbooks for binary optinons trading, enabling a market for virtually any Chainlink-supported price feed
Sudoswap $20k Support feature and UX development, along with other improvements designed to attrack more users and volume
Market.xyz $50k Bring sophisticated yield generation capabilities to Polygon for new and experienced DeFi users
PayRue $20k Integrate support for Polygon and market this new capability to existing and new users
Trader.xyz $1M Quickly ramp up development and design capabilities with the goal of becoming the flagship, 0x-powered application for discovering and trading NFTs
Bitquery $50k Enable 0x APIs for Ethereum, Binance Smart Chain, and Polygon
Teton Finance $8k Update 0x Starter Project
(Note: some grants are partially subject to meeting target metrics or other conditions)

Of particular note were the grants issued to Sudoswap and Trader.xyz. Both projects are building NFT trading/marketplace platforms on previous versions of the protocol since the canonical 0x Protocol v4 does not currently support the ERC721 and ERC1155 standards. We were encouraged by the community feedback on both grants and especially impressed by the overwhelming approval of the sizable $1M Trader.xyz grant.

Clearly, there is an appetite for more 0x-powered NFT projects, and the positive signal created from the grants contributed to 0x Labs prioritizing v4 NFT support:

If you are interested in applying for a 0x DAO grant, please reach out!

๐Ÿ“ˆ 0x Governance Participation

In 2021, over 600 unique addresses voted on 10 ZEIP and treasury proposals, with over 180M ZRX in voting power being put to work. Notably, a growing percentage of governance actions are community-led. As shown by the graph below, voting power increased substantially over past year, largely due to the voting power exercised by the 0x DAO delegate group.

ZRX token holders can become more involved in 0x governance by joining the conversations in the 0x forum or visiting the ZRX portal to participate in community governance. There are currently three types of votes that token holders may participate in on the portal:

Type Purpose Requires Gas Requires Staking/Delegation
Snapshot Non-binding poll to measure sentiment on a particular topic or proposal no no
ZEIP Binding vote related to upgrading the core 0x Protocol no yes
Treasury Binding vote related to the usage of the community treasury yes yes

๐ŸŽฌ Wrapping Up

Since the launch of the 0x DAO earlier this year, the community has begun to independently assert agency over protocol and treasury matters - participating in votes, conducting experiments, and allocating millions in grants to promising projects. As participation continues to grow, weโ€™re excited to see what we can achieve together in the year ahead!

To get involved, please join us at:


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