In a resounding display of community support, a governance vote has given the green light to a pivotal proposal for dYdX.
The proposal, which paves the way for dYdX version 4, designates DYDX as the primary Layer 1 token for the forthcoming dYdX blockchain.
The momentous vote, conducted on the Snapshot platform, concluded on September 4th, with an astonishing near-unanimous consensus from the community. Championed by Wintermute, the proposal garnered a staggering 36 million votes in favor of 392 unique addresses, while resistance was minimal, with only 43 opposing votes originating from four addresses.
In accordance with this groundbreaking decision, the project is gearing up to shift the DYDX token from the Ethereum network to a Layer 1 appchain within the Cosmos ecosystem, currently in its testnet phase.
The proposal also encompasses a strategic initiative involving the development of an Ethereum smart contract under the oversight of the dYdX Foundation. This contract is envisaged to facilitate the seamless, permissionless transfer of DYDX tokens from the Ethereum network to the emerging dYdX Chain.
“DYDX is now officially slated to become the foundational token of the dYdX Chain,” declared Antonio Juliano, the founder of dYdX.
What is dYdX?
Established in 2018, dYdX has been a trailblazer in the decentralized derivatives sector, especially in its provision of perpetual trading options. Over the past 24 hours alone, the platform has recorded a staggering $240 million in trading volume and has amassed a cumulative trading volume exceeding $1 trillion since its launch in 2020.
Perpetual contracts, commonly referred to as “perpetual,” represent a type of futures contract distinguished by their absence of expiration dates, making them a highly favored derivative instrument within the cryptocurrency industry.
Under dYdX version 4, each validator within the network will operate an off-chain orderbook. Trading orders will be transmitted to the network and distributed among validators, who will subsequently create blocks containing matched orders via a proof-of-stake consensus mechanism.