In a big improvement that expands the utility of the DYDX token within the realms of staking, safety, and governance, a brand new dYdX layer 1 chain has launched on mainnet.
This proof-of-stake community, constructed utilizing the Cosmos SDK, positions DYDX as its Layer 1 token, additional cementing its position within the dYdX Chain.
In line with info shared with Crypto, the primary block of the dYdX Chain mainnet was generated on Oct. 26, marking the start of a brand new period for DYDX.
The dYdX change amassed a big $137M in charges final yr, making this proposition notably attractive for potential validators and stakers.
So, what does the dYdX Chain provide stakeholders?
One key facet is the expanded utility of the DYDX token. Initially launched because the governance token of the dYdX Layer 2 protocol on Ethereum (dYdX v3) again in Aug. 2021, the DYDX token’s position has now broadened. The dYdX group voted to undertake DYDX because the Layer 1 token of the dYdX Chain, along with establishing a one-way bridge from Ethereum to the dYdX Chain. Wrapped Ethereum DYDX (wethDYDX) will now share the identical governance utility as ethDYDX in dYdX v3.
DYDX holders can now select to function validators or delegate their stake to present validators, in keeping with normal practices in proof-of-stake networks. By staking their DYDX, holders contribute to securing the community and are rewarded with a proportion of dYdX Chain protocol charges relative to their stake weight.
Additional enhancing the safety of the dYdX Chain, validators, who’ve a big financial stake within the community, are liable for verifying and confirming transactions.
As extra DYDX holders stake their tokens throughout a various vary of validators, it turns into more and more troublesome for a coordinated assault to control consensus choices.
The governance facet of the dYdX Chain additionally guarantees elevated accessibility in comparison with dYdX v3, owing to the usual x/gov module throughout the Cosmos SDK. All staked DYDX tokens will likely be eligible to be used in dYdX Chain governance, with validators inheriting the voting weight of their stakers until the latter select to vote personally.