DYDX, the native token of the dYdX Chain, has developed from a governance-only coin to a dynamic, multifaceted asset inside six months of its launch.
Based on a weblog put up by the dYdX Basis, DYDX has grow to be the powerhouse of the layer-1 blockchain, enabling decentralized governance and permitting customers to stake their tokens for rewards.
A Timeline of DYDX’s Launch
DYDX was launched in October 2023 alongside the dYdX Chain. Earlier than that, the dYdX Basis had launched DYDX (now ethDYDX) in August 2021. ethDYDX serves as a governance token for the Ethereum-based layer-2 protocol dYdX v3.
In September 2023, the dYdX group voted to undertake DYDX because the native token of the dYdX Chain. To this impact, a wethDYDX good contract was deployed to function a bridge for token holders to transform their ethDYDX to DYDX.
On the time of writing, greater than 75% of all ethDYDX have been transformed to DYDX and migrated to the dYdX Chain. With 25% left, the circulating provide of ethDYDX now sits at roughly 247 million.
Staking DYDX
dYdX Chain was designed with a staking reward mechanism that distributes 100% of the protocol’s charges, paid predominantly in Circle (USDC), to stakers.
“This mechanism not solely incentivizes the supply of safety but in addition opens up numerous sensible use circumstances for Stakers. Particularly, they will reinvest their USDC staking rewards into crypto or different belongings or use the USDC as collateral for buying and selling on the dYdX Chain with just some clicks,” stated the dYdX Basis.
Greater than 18,900 DYDX stakers are receiving rewards, with $20 million disbursed up to now. Round 149 million DYDX, representing 14.9% of the full provide, are staked to lively set validators on the dYdX Chain with an annual proportion yield of 18%.
The Journey So Far
Earlier this month, the dYdX group authorized a proposal to liquid-stake 20 million DYDX to cut back the prospect of malicious assaults, enhance community safety, and decentralize validator operations. Rewards from the liquid staking would auto-compound USDC, be mechanically transformed into DYDX, after which re-staked to generate extra yield.
The dYdX Chain now has over $120 billion in cumulative buying and selling quantity with rising staked belongings. Neighborhood members have additionally initiated 55 governance proposals, indicating lively participation within the community’s decision-making course of.
In the meantime, DYDX has a complete provide of 1 billion tokens, a circulating provide of 501 million DYDX, and a five-year token distribution schedule.
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