dYdX launches blockchain layer 1, validators and shareholders receive all fees. For more information about this news, follow the digital currency website.
dYdX completes its Layer 1 proof-of-stake blockchain launch by creating a genesis block by on-chain validations. Decentralized cryptocurrency exchange dYdX has launched its Layer 1 blockchain by creating its genesis block. This blockchain will work using native DYDX tokens.
The dYdX chain is supposed to distribute all fees to the lenders and shareholders in USD Coin. This includes transaction fees to USDC as well as gas fees for DYDX transactions or USDC transactions.
The Proof of Stake (PoS) blockchain network was created using the Cosmos software development kit. The network uses CometBFT as its consensus protocol. Validators share DYDX to secure the blockchain and implement network governance operations.
Antonio Giuliano, the founder of dYdX, emphasized that the launch of the dYdX chain depends on companies such as Circle and Coinbase launching in time to create its genesis block on Cosmos. Giuliano previously described dYdX as a “brand new blockchain built on top of the Cosmos SDK” and “the first decentralized, off-chain order book.” Blockchain is also completely open source.
Prior to the launch of dYdX’s native Layer 1 chain, the original DYDX was an ERC-20 token running on the original dYdX Ethereum Layer 2 protocol. To facilitate the transition to its Layer 1 chain, the dYdX community voted to adopt DYDX as the L1 token of the dYdX chain. Adopt a one-way bridge from Ethereum to the dYdX chain and wrapped into Ethereum DYDX (wethDYDX) governance tool similar to ethDYDX in dYdX v3.
As a result of community votes and governance results, the utility of the DYDX token was expanded to be used for deployment, securing the network, and assisting governance on the dYdX chain.
Similar to Ethereum’s transition to PoS, stickers and validators secure and protect the network and receive the dYdX protocol in proportion to their stake holdings. Fees collected by the dYdX chain protocol are distributed to validators and stakeholders through the Cosmos distribution module.
An announcement from dYdX suggests that governance on the dYdX chain will be more accessible than the previous Ethereum-based Layer 2 protocol: the dYdX chain does not have the power proposed by dYdX v3. Instead, the governance module effectively enables any holder to create a governance offering with deposit.
Users can only use staked DYDX tokens to participate in chain governance. Chain Creditors will also inherit the weight of stockholders’ votes, unless certain stockholders decide to vote individually on the proposals.