dYdX is ready to accept layer-1 blockchain, validators and all payments.

Decentralized cryptocurrency exchange dYdX has launched a layer-1 blockchain by creating its seed block, which operates using DIDX tokens.

The DIDX chain is designed to distribute all payments in USD Coin (USDC) to validators and stakeholders. This includes USDC-distributed transaction fees as well as gas fees for transactions handled by DYDX or USDC-distributed transactions.

The proof-of-stake (PoS) blockchain network is built using the Cosmos software development kit and uses CometBFT as the consensus protocol. Validators hold DYDX to maintain the security of the blockchain and perform administrative tasks of the network.

The launch of DIDX Chain Network itself involved several companies:

@dydx_ops_subdao coordinating genesis and general launch + hosting index and frontend @dydxfoundation coordinator community management@noble_xyz, @circleapp, @coinbase to launch…

– Anthony | dYdX (@AntonioMJuliano) October 26;

DIDX founder Antonio Giuliano highlighted that the launch of the DIDX chain hinged on the likes of Circle and Coinbase launching on Cosmos during the Genesis block. Giuliano previously described dYdX as “a completely new blockchain built on the Cosmos SDK” and “the first decentralized on-chain order ledger.” Blockchain is also completely open source.

Before dYdX's native Layer-1 chain was launched, the original DYDX was an ERC-20 token running on DIDX's original Ethereum Layer-2 protocol. To facilitate the transition to its own Layer-1 chain, the DDX community will adopt DYDX as the L1 token of the dYdX chain, take a one-way bridge from Ethereum to the dYdX chain, and encapsulate Ethereum DYDX (wethDYDX) with the same management facility as ethDYDX in dYdX v3.

As a result of community votes and governance results, the DYDX token is used to leverage, secure the network, and assist governance on the dYdX chain.

Similar to Ethereum's transition to PoS, stakeholders and validators will protect and defend the network and receive the dYdX protocol in proportion to their holdings. Fees collected by the dYdX Chain protocol are distributed to the right and stakeholders through the Cosmos distribution module.

DIDX's announcement highlighted its expectation that management on the DIDX chain will be more accessible than the previous Ethereum-based Layer-2 protocol:

“The dYdX chain does not have the dYdX v3 concept of ‘Power Proposing.'

Provisions to combat spam proposals include minimum deposit limits and voting mechanisms with veto powers. Users can only use masked DYDX tokens to participate in chain management.

Chain validators inherit the voting weight of stakeholders, unless certain stakeholders choose to vote on proposals individually.

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