The dYDX community has resoundingly supported the proposal introduced by Wintermute that involves developments that would impact the DYDX token and the ecosystem. This decision, approved through a Snapshot vote, brings significant changes that pave the way for dYdX’s departure from Ethereum and its transition to a standalone Layer-1 Proof-of-Stake blockchain network.
The dYdX made its debut on the Ethereum network in 2017 and quickly rose to prominence as a leading decentralized finance exchange (DEX) that supported leveraged trading. Responding to rising Ethereum gas fees, dYdX migrated to Layer-2 on StarkWare in 2021. This scalability improvement paved the way for the introduction of new features and an expansion of supported trading pairs.
By June 2022, dYdX had announced plans to develop its own chain on Cosmos and entered the public testnet phase in July of the same year.
DYDX Token Migration and dYdX V4
🗳️ v4 Adoption & DYDX Token Migration
The dYdX community has voted in support of v4 Adoption and a potential DYDX Token Migration❗
— dYdX Foundation 🦔 (@dydxfoundation) September 3, 2023
The most recent Snapshot proposal achieved the required 20 million votes for approval, with Wintermute contributing a significant portion of the votes. The proposal received a total of 36 million DYDX tokens in support, while just 43 tokens were against it. The next stage involves on-chain voting that will end on September 8th.
One of the most immediate changes involves the adoption of dYdX V4. This much-anticipated upgrade promises to bring enhanced functionality and a number of new features with greater autonomy to the platform.
Moreover, this proposal features another pivotal aspect of the ecosystem, which is the migration of the DYDX token into the native token of the dYdX Chain. This move is set to become a cornerstone of the network’s independent ecosystem by offering seamless integration and scalability.
As noted by the Foundation, a bridge will be developed to facilitate the migration of DYDX tokens from the Ethereum blockchain to the dYdX chain. This bridge will act as a conduit that ensures that DYDX tokens can smoothly migrate from the Ethereum blockchain to the native blockchain network.
To fulfill administrative and utility functions for both v3 and v4, the deployment of wethDYDX, an Ethereum-based token, is on the horizon. This integration is designed to provide continuity and support during the transition process.
However, Wintermute is further encouraging DYDX token holders to consider delegating their proposal power to facilitate the Long Timelock vote, as additional support is required to achieve this milestone.