DYDX has experienced remarkable growth since its launch, evolving into the primary token of the dYdX blockchain that empowers community members to govern network operations. What began as a simple decision-making token has transformed within just six months into the core mechanism for decentralized governance and staking rewards.
Key Developments in DYDX's Evolution
- October 2023: Launched alongside dYdX Chain, replacing the ethDYDX token previously used on Ethereum's dYdX v3 protocol
- September 2023: Community vote established DYDX as dYdX Chain's main token through ethDYDX conversion
- Current Status: Majority of ethDYDX tokens converted to DYDX and migrated to dYdX Chain
👉 Discover how DYDX staking works
Staking Mechanics and Network Participation
DYDX holders actively participate in network security by staking their tokens:
- Active Stakers: 18,900+ participants
- Total Rewards Distributed: $20 million to date
- Staked Supply: 149 million DYDX (15% of total supply)
- Current APY: 18% rewards paid in USDC from network fees
The community recently approved staking 20 million additional DYDX to enhance network security and decentralization. These staking rewards will be reinvested to acquire more DYDX tokens for compounding staking positions.
Network Growth Metrics
- Trading Volume: $120B+ cumulative on dYdX Chain
- Governance Participation: 55 improvement proposals submitted
Token Distribution:
- Total Supply: 1 billion DYDX
- Circulating Supply: 501 million DYDX
- Five-year distribution plan ongoing
Frequently Asked Questions
What's the difference between DYDX and ethDYDX?
DYDX is the native token of dYdX Chain, while ethDYDX was its Ethereum-based predecessor. Most holders have converted to the new chain's token.
How do I earn staking rewards with DYDX?
By delegating tokens to active validators on dYdX Chain, users earn approximately 18% APY paid in USDC from network transaction fees.
👉 Learn about dYdX Chain's governance model
What percentage of DYDX is currently staked?
About 15% of the total supply (149 million tokens) is currently staked with validators, demonstrating strong network participation.
How does staking improve dYdX Chain's security?
Increased staking makes the network more decentralized and resistant to attacks, with the recent 20 million DYDX staking initiative further strengthening these properties.
What happens to unconverted ethDYDX tokens?
While most have converted to DYDX, remaining ethDYDX tokens can still be converted using the original smart contract interface.