- dYdX Chain will allocate all accumulated fees to the network’s validators and owners, expanding the capabilities of the DYDX token for the Version 4 platform.
- In a recent update, the dYdX Foundation has approved the expanded use of the DYDX token in Version 4, emphasizing its significant role in strengthening the network’s security and governance.
- The fee distribution mechanism will be managed through the Cosmos x/distribution module, which provides an effective system to allocate fees on the network more fairly.
The highly anticipated dYdX Chain alpha mainnet went live recently. According to information from dYdX, the revenues generated from network fees will now be distributed.
dYdX Chain Decides to Share Network Revenues
Based on the latest information, dYdX Chain will allocate all accumulated fees to the network’s validators and owners, expanding the capabilities of the DYDX token for the Version 4 platform. The dYdX Chain alpha mainnet went live recently, with validators creating the genesis block, marking a significant transition phase for the decentralized derivatives platform.
In the recent update, the dYdX Foundation has approved the expanded use of the DYDX token in Version 4 and emphasized its important role in enhancing network security and governance. Tokens will be allocated to network validators on a rolling basis, and all protocol fees, including USDC transaction fees and DYDX gas fees, will be directed to these validators and owners.
A spokesperson for the dYdX Foundation explained that the security incentives on the chain will not rely on token inflation, instead, they will be funded by fees collected in USDC and distributed to validators and owners.
The fee distribution mechanism will be managed through the Cosmos x/distribution module, providing an effective system for fairer fee allocation on the network. Tokens will need to be staked to be used in the network’s governance system. Token holders will receive voting power for staked tokens unless they decide to vote on the proposal, at which point the power will transfer with the staked tokens.
dYdX Alpha Mainnet and Version 4
The activation of the dYdX alpha mainnet marks the first phase of the transition to dYdX Version 4, a new community-governed Layer 1 blockchain. The dYdX Chain, built on the Cosmos SDK, employs the CometBFT consensus algorithm.
In the current alpha phase, the mainnet aims to stress test the network and onboard validators. A beta launch is planned to follow, contingent on community governance voting approval, allowing for actual transactions on the network eventually.
