dYdX Token Gets the Green Light to Serve as the Native Asset for the Upcoming dYdX Chain

Crypto News– The dYdX derivatives protocol’s governance system has approved a proposal to transition to version 4 and embrace DYDX as the Layer 1 token for its dedicated blockchain.

dYdX Token Gets the Green Light to Serve as the Native Asset for the Upcoming dYdX Chain

The vote, conducted on the Snapshot platform and concluded on September 4th, garnered nearly unanimous community support. The proposal, initiated by Wintermute, received a favorable vote of 36 million from 392 addresses, while opposition was minimal, with only 43 votes against four addresses.

Following the governance decision, the project is gearing up to move the DYDX token from Ethereum to a Layer 1 appchain within the Cosmos ecosystem (currently in the testnet phase). The proposal also outlined the development of an Ethereum smart contract, to be managed by the dYdX Foundation, which will facilitate the permissionless transfer of DYDX tokens from the Ethereum network to the new dYdX Chain.

Antonio Juliano, the founder of dYdX, stated, ‘DYDX is now officially designated as the base token of the dYdX Chain.‘

About dYdX

Founded in 2018, dYdX leads the decentralized derivatives market, particularly in offering perpetual trading. The platform has reported nearly $240 million in trading volume over the last 24 hours and has amassed a total trading volume exceeding $1 trillion since its 2020 launch.