dYdX initiated the distribution of its governance token with minor hiccups but no significant impact to its users
dYdX Governance Token
Some recipients walked away with a considerable windfall as the long awaited dYdX airdrop awarded loyal users with retroactive and user trading rewards launching the price of the token to a high of $15.72, according to Coingecko. cdn.embedly.com/widgets/media.html?type=text%2Fhtml&key=96f1f04c5f4143bcb0f2e68c87d65feb&schema=twitter&url=https%3A//twitter.com/dydxfoundation/status/1435641354860834816&image=https%3A//abs.twimg.com/errors/logo46x38.png
However, the rollout was marred by an incident where an error was discovered in the Safety Staking Pool’s smart contract. The team immediately removed access to the Safety Staking Pool as a precaution. The team also assured its users’ that the user funds are not compromised.
The design of the Safety Staking Pool included deposits being locked for a minimum of 1 epoch (28 days). Assuming an upgrade proposal can be passed within the next week, no user impact will have occurred, & the few early stakers will still be able to withdraw their funds on time – dYdX Foundation explains in its Twitter announcement.
dYdX’s Governance Token
The governance token allows dYdX’s community to govern its layer-2 protocol. The stakeholders are the traders, liquidity providers and partners. Similar to other decentralized exchanges, a portion of the total allocation will be distributed to users that had interacted with the protocol subject to certain qualifying conditions. Here, 7.5% of the supply will be retroactively vested to those that qualified. Token allocation will take place over 5 years.
dYdX enables a robust ecosystem around governance, rewards, and staking — each designed to drive future growth and decentralization of dYdX, resulting in a better experience for users, says the dYdX team through a post on its dYdX token and governance.
Governance token allows for its holders to shape and steer the direction of the protocol. Decisions on ongoing projects or a change to the governance itself can be vetted and voted by its community members. This on-chain governance empowers the users and promises transparency by decentralizing control to the protocol.
Future of dYdX
The distribution of its governance token is one of the milestones of a fully decentralized protocol. Uniswap airdropped 400 $UNI of its governance token in September last year. Today the airdrop is worth approximately $9,000. The crypto community is growing and the need to have exchanges to meet the market’s demand will grow in tandem.
lCentralized exchanges like Coinbase and Binance are facing regulatory hurdles and this would drive more traffic to decentralized exchanges like dYdX. The vesting of the dYdX’s governance token provides a fairly equitable spread for 5 years. Unless regulators decide to impose strict restrictions on unhosted wallets, there will be good growth for decentralized exchanges.
Where to find dYdX:
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.