DyDx Exchange Unveils Governance Token with Airdrop Worth $100K

Over years, airdrops have been a crowd favourite in the cryptocurrency market because they allow companies to incentivize early users while also increasing token ownership. dYdX, a custody-free decentralized derivatives exchange that runs on a layer-2 variant of the Ethereum (ETH) system, is the latest venture to delight its backers with backdated incentives for its freshly created currency.

According to CoinGecko data, DYDX was trading at a price of $13.54 while writing this article, after reaching an intra-day peak of $14.27 on its foremost day of getting listed in the markets. The amount of tokens awarded per each user was decided by their past trading volume on the platform, with the bottom rung user getting 310 tokens for transacting a minimum of $1 on the exchange and the top tier client receiving 9,529 tokens for transaction volumes surpassing $1 million.

The airdrop was valued between $4,414 and $135,692 at the day high of $14.27, with the typical user who exchanged from $1,000 to $10,000 in monetary worth on the platform getting 1,163 DYDX worth $16,561. The backdated ‘release’ of the DYDX governance token is a significant step forward for the protocol as it strives to become a completely decentralized, community-managed platform.

It is also another indicator of a broader change, with an increasing variety of projects moving to layer-two solutions in an attempt to function in a low cost ecosystem. Several blockchain initiatives are moving to different cross-chain and layer-two systems, such as Polygon and dYdX. In fact, dYdX was among the foremost decentralized exchanges to declare that it will debut on StarkWare, a layer-two solution created in collaboration with StarkEx.

At the end of the first mining period, there are already 32,700 DYDX holders and the network had processed $13.8 billion in monthly transaction volume, and $141 million in market-maker capital had been committed, as per dYdX statistics.