dYdX Chain Charges Transaction Fees in USDC, Distributes to Validators and Stakers
dYdX Chain will distribute all network fees to transaction validators and stakers.
dYdX Chain Charges Transaction Fees in USDC, Distributes to Validators and Stakers.
Image: Pintu
dYdX Chain, the blockchain based on its namesake DEX's Cosmos SDK, will utilize all accrued fees to reward validators and stakers on the network, while reinforcing the value of the DYDX token with the v4 upgrade.
In the early hours of October 27, the alpha mainnet of dYdX Chain officially launched with its initial genesis blocks, as previously reported by Coin68. This marks a significant milestone, heralding a new chapter for the largest decentralized derivatives exchange in the crypto industry.
Introducing DYDX the L1 token of the dYdX Chain 🎆
— dYdX Foundation 🦔 (@dydxfoundation) October 27, 2023
DYDX once migrated has expanded utility;
⏰ Staking
🔒 Security
🤝 Governance
All fees generated by the dYdX Chain protocol are distributed to Validators & Stakers every time a new block is committed 🙌https://t.co/JV8KBdpXwJ
In its latest update, the dYdX Foundation announced enhancements to the DYDX token on v4, emphasizing its role in enhancing network security and governance. Specifically, DYDX will now be eligible for staking purposes, enabling token holders to participate as transaction validators through staking their tokens.
Notably, the derivatives platform will now charge transaction fees in USDC. To mitigate token inflation and serve as an additional incentive, the dYdX Foundation will allocate all network fees to validators and stakers. The distribution mechanism is managed through the Cosmos x/distribution module, ensuring equitable distribution between validators and stakers.
According to data from Token Terminal, dYdX has collected over $5.67 million USD in fees in October alone. Last year, this figure reached $137 million USD, making it an enticing opportunity for validators and stakers within the ecosystem.
Transaction fee statistics accumulated by dYdX over the past 5 months. Source: Token Terminal
These are the initial building blocks as dYdX lays the foundation for the transition to v4 and welcomes an entirely new layer-1 blockchain, community-managed.
The current alpha mainnet phase primarily focuses on stress-testing the network and building the validator team. The release schedule for the beta version will be determined by community voting.
