The Dydx chain, a proof-of-stake blockchain network, has successfully launched its mainnet and introduced dydx as its layer one (L1) token. On October 26, at 1 p.m. EDT, the network’s validators created the first block, signifying the start of a new era for the Dydx chain.
The introduction of dydx as the L1 token brings with it enhanced utility, including the distribution of network fees to validators and stakers, and the allocation of trading fees to stakers in the USDC stablecoin. Dydx Chain’s Mainnet Goes Live, Introducing Dydx as Integral L1 Token Located in Zug, Switzerland, the Dydx Foundation oversees the Dydx chain, ensuring a secure and efficient operation of the network.
Utilizing the Cosmos SDK and leveraging CometBFT for consensus, the Dydx network requires validators to stake its native tokens, contributing to the network’s security and governance. The development team’s announcement sent to Bitcoin.com News details that the L1 protocol token is pivotal in upholding the integrity and functionality of the blockchain.
The distribution of network fees on the Dydx chain is designed to incentivize participation and investment in the network. Validators and stakers are rewarded with a share of the protocol fees, acknowledging a crucial role in maintaining network security and stability.
This mechanism aims to ensure a fair and transparent distribution of rewards, aligning the interests of all parties involved. A unique aspect of the Dydx chain’s fee structure is the allocation of trading fees to stakers in the form of usd coin (USDC). The announcement on Friday details that this approach provides a stable and reliable source of rewards for stakers, mitigating the volatility often associated with crypto rewards.
The Dydx team believes the use of USDC can add an extra layer of security and trust for participants in the network. On the other hand, the L1 dydx token provides utility functions, according to the team. “The utility functionalities of a token reflect the usability of that token within a given protocol,” Dydx explained.
“In the case of the Dydx chain, the utility of the network’s L1 token is apparent in three areas: Staking, Security and Governance,” the Dydx Foundation added.
Source : Bitcoin News by Jamie Redman / October 27, 2023