On October 26 at 17:00 UTC, 2023, the dYdX Chain open source software was deployed and the first block of the dYdX Chain was created by the dYdX Chain validators.
The dYdX Chain is a proof-of-stake blockchain network built using the Cosmos SDK and leveraging CometBFT for consensus.
The dYdX community, through dYdX governance, voted (Snapshot and on-chain) in favor of adopting DYDX as the Layer 1 token of the dYdX Chain for staking to validators in order to secure the chain and for stakers of the L1 token to govern the network.
The utility of the dYdX Chain’s L1 token, DYDX, is apparent in three areas: Staking, Security and Governance.
Staking: DYDX holders have the option to serve as validators (and self-delegate) or to delegate their stake to existing validators. Such delegation increases the likelihood of the chosen validators entering or staying in the active validator set, thereby becoming a participant in the network’s consensus process.
Security: Staking DYDX directly contributes to dYdX Chain security. As more DYDX holders choose to stake their tokens across a diverse range of validators in the network and the total amount of stake on the network increases, it becomes increasingly difficult for a coordinated attack to influence a consensus decision.
Governance: DYDX empowers DYDX holders to propose and vote on proposals, directly influencing the evolution of the dYdX Chain through a democratic process. The subject matter of proposals can vary from changing a governable parameter on the dYdX Chain, spending dYdX community funds, and updating the software that dYdX Chain nodes are running, among other things.