> For the complete documentation index, see [llms.txt](https://docs.dydx.community/dydx/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dydx.community/dydx/start-here/dydx-token.md).

# DYDX Token

DYDX is the dYdX Chain's Layer 1 token, as adopted by the dYdX community, through dYdX governance ([Snapshot](https://snapshot.org/#/dydxgov.eth/proposal/0x17026e18317dc29fe745d3130246a83b1485612da9c97e7261e8f659cf33663c) and [on-chain](https://dydx.community/dashboard/proposal/15)).

DYDX, the dYdX Chain's L1 token, serves three key purposes: Staking, Security, and Governance.

1. 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.
2. 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.
3. 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.


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