dYdX Launches Layer 1 Blockchain with Native DYDX Tokens

Decentralized cryptocurrency exchange dYdX has introduced its layer 1 blockchain, powered by native DYDX tokens

dYdX has launched its layer 1 blockchain with the creation of its genesis block, operating using native DYDX tokens. The dYdX Chain will distribute all fees to validators and stakers in USD Coin (USDC), including trading fees denominated in USDC and gas fees for DYDX or USDC transactions.

dYdX Chain Built on Cosmos SDK and Utilizes CometBFT

The proof-of-stake (PoS) blockchain network was built using Cosmos' software development kit and makes use of CometBFT as its consensus protocol. Validators stake DYDX tokens to secure the blockchain and carry out governance operations on the network.

dYdX Founder Antonio Juliano Highlights Importance of Circle and Coinbase Launching on Cosmos

dYdX founder Antonio Juliano emphasized that the launch of the dYdX Chain relied on Circle and Coinbase launching on Cosmos in time for the creation of its genesis block. Juliano described dYdX as the "first-ever decentralized, offchain orderbook" built on Cosmos SDK. The blockchain is also fully open-source.

Transition from Ethereum to dYdX Chain

Before the launch of the dYdX Chain, the original DYDX token operated on dYdX's Ethereum-based layer 2 protocol. To facilitate the transition, the dYdX community voted to adopt DYDX as the L1 token of the dYdX Chain and implement a one-way bridge from Ethereum. The utility of the DYDX token has expanded to include staking, securing the network, and governance on the dYdX Chain.

Governance on dYdX Chain to be More Accessible

dYdX expects that governance on the dYdX Chain will be more accessible compared to its previous Ethereum-based layer 2 protocol. The governance module enables any holder to create a proposal with a deposit. Measures are in place to combat spam proposals, including minimum deposit thresholds and voting mechanisms with veto powers. Only staked DYDX tokens can be used for chain governance.

Chain validators will also inherit the voting weight of stakers, unless specific stakers choose to vote on proposals individually.