Cryptocurrency exchange dYdX has introduced its layer-1 blockchain, named the dYdX Chain. This blockchain operates with DYDX tokens and is built using Cosmos technology, employing a proof-of-stake system.
The dYdX Foundation has announced that the DYDX token will have expanded utility after the migration to the dYdX Chain. The DYDX token will be used for staking, security, and governance on the dYdX Chain.
The dYdX Chain is set to reward Validators & Stakers who help secure and maintain the network. These rewards will be distributed in USDC, another cryptocurrency, and will be funded by trading fees and transaction fees incurred on the dYdX Chain.
Previously, DYDX tokens were associated with the Ethereum blockchain. However, they have now migrated to their own blockchain. Holders of DYDX tokens can now engage in activities like safeguarding the network and participating in decision-making processes.
The dYdX Chain is designed to be more inclusive, allowing a wider range of users to influence its governance. To prevent irrelevant proposals, the network has set up rules to deter spam. Validators and stakers will play a crucial role in shaping the future of the dYdX Chain.