dYdX Chain completes mainnet migration, rolls out $20 million in DYDX token rewards

cyptouser3 months agoCryptocurrencies News60

The decentralized trading platform dYdX Chain has achieved a significant milestone, transitioning from its ‘Beta Stage’ to ‘Full Trading’ as of Nov. 28.

The initiation on the dYdX Chain was activated following a dYdX governance vote, showcasing the platform’s focus on decentralized decision-making and community-driven development. Major markets such as BTC-USD, ETH-USD, SOL-USD, and LINK-USD are now available for full-production trading.

As the dYdX governance forum post details, this furthers the ongoing migration to dYdX Chain that commenced with the mainnet launch in October.

According to the post, the dYdX Chain Beta Stage that started Nov. 13 served as a testing period to ensure smooth trading functionality, with fees accruing to validators and stakers but no trading rewards enabled. With stability demonstrated, this latest vote transitions the network to Full Trading.

The approved changes will credit 54 million DYDX tokens to the Rewards Treasury Vester to fund trading rewards, setting the initial rewards multiplier to .33 before ramping up to .66 and .90 over subsequent months, aligning with the winding down of rewards on Ethereum per DIP 29. This may incentivize further migration of activities and assets to dYdX Chain.

Finally, over 170 million DYDX was credited to the Community Treasury Vester based on the remaining balances from the Ethereum treasuries.

As the decentralized derivatives leader completes its pivot to its own base layer, the community is aligning incentives around using the dedicated dYdX Chain. However, it remains to be seen whether and how quickly activities, users, and markets will migrate from the security of Ethereum to this new blockchain.

The vote also approves starting a 6-month Launch Incentive Program proposed by Chaos Labs, designed to motivate volume and user growth on the dYdX Chain, pending separate on-chain votes on each incentive distribution.

dYdX Chain trading rewards go live

The rewards program is particularly notable for its immediate distribution of rewards in DYDX tokens following each successful trade, aligning incentives directly with trading activity. The launch incentive program, with an allocation of $20 million in DYDX tokens, is designed to further engage and reward the community for their participation and trading activities on the platform.

Amidst these advancements, the dYdX Chain mentions that it continues to prioritize the stability and security of its platform. These elements are crucial for maintaining trust and ensuring the smooth operation of all trading activities. The emphasis on staking DYDX with validators further strengthens the platform’s security and decentralizes its staker distribution, enhancing the overall resilience of the chain.

According to the release, the dYdX Chain has plans to add more markets and provide regular updates to its community, with a commitment to transparency.

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