Approximately 41.7 million DYDX tokens, valued at around $26.2 million, are currently inaccessible on the Ethereum network. This situation arose after the cross-chain bridge for the ERC-20 version of the token was deactivated, leading to the withdrawal of liquidity from associated pools. The issue has left many retail investors unable to access or trade their holdings.
Key Takeaways
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Over $26 million worth of DYDX tokens are stuck on the Ethereum network.
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The tokens became inaccessible following the shutdown of the cross-chain bridge.
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Many retail investors were unaware of the migration deadline.
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Community members are proposing solutions to facilitate token migration.
The Genesis of the Problem
The predicament began in November 2024 when developers proposed phasing out support for the Ethereum-based wethDYDX smart contract, which served as the bridge for the DYDX asset. This proposal was approved in December, with the protocol's shutdown scheduled for six months later. A final vote in June 2025 saw a majority of validators endorse the decision, though participation was limited, with only 434 accounts voting and the proposal forum post receiving minimal attention.
Investor Frustration Mounts
Concerns were amplified in September when community members began raising alarms. On-chain data and analyses suggest that the trapped funds represent about 4.2% of the total DYDX supply. Approximately 45,000 holders of ethDYDX have positive balances, with a significant portion holding over $100 or $1000 worth of tokens. Selling these tokens on platforms like Uniswap has become nearly impossible due to a lack of liquidity and drastically lower prices compared to the market rate.
Some influential figures in the crypto space have labeled the situation a "deliberate scam," suggesting the team intentionally froze retail funds to improve tokenomics. They point to a clause in the original proposal that mentioned reducing the circulating supply of ethDYDX to mitigate inflationary pressure. Critics also argue that dYdX governance votes are often dominated by large validators, effectively marginalizing the voices of smaller investors.
Community Efforts for Resolution
Affected users have taken to public forums to address the issue, highlighting the lack of a fair and straightforward method to migrate their tokens to the dYdX Chain. Several potential solutions have been proposed by the community, including:
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Temporarily reopening the bridge to allow ethDYDX holders to convert their tokens to native DYDX at a 1:1 ratio.
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Establishing official liquidity on decentralized exchanges to enable seamless swaps.
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Implementing an alternative migration contract.
Discussions are ongoing, with a recent forum post garnering three times the views of the original proposal. Many investors have confirmed the problem and are urging the dYdX team to provide a solution. A dedicated Telegram channel has been created for affected DYDX holders, and the trading platform's team is reportedly scheduled to hold a call on September 17th to discuss the trapped tokens.
Sources
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$26 million worth of DYDX tokens are stuck on the Ethereum network., ForkLog.
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Retail Investors Trap: dYdX’s Bridge Closure Locks $25M in Liquidity, AInvest
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