The dYdX Community Votes on Governance Proposal to Upgrade Protocol and Introduce DYDX as Layer 1 Token
The dYdX community is currently voting on a governance proposal from Wintermute that suggests upgrading the protocol to version 4 and introducing DYDX as the Layer 1 token for the new dYdX Chain. The voting process began today on the Snapshot platform and is slated to conclude on September 1.
Key Points:
- Wintermute’s proposal calls for the creation of an Ethereum smart contract, commissioned by the dYdX Foundation, to enable a one-way permissionless migration of DYDX tokens from the current Ethereum network to the dYdX Chain.
- The vote on the Snapshot platform currently shows unanimous support, with 10 million votes from Wintermute. If the proposal gains 20 million votes in favor, it will proceed to a “long timelock” proposal on-chain.
- The dYdX Foundation recently discussed the possibility of migrating DYDX tokens to a Layer 1 protocol on the Cosmos network via a community vote.
- The dYdX Chain will be a proof-of-stake blockchain network, requiring a Layer 1 protocol token for staking and governance.
Hot Take
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The dYdX community is actively participating in the governance process by voting on Wintermute’s proposal. If successful, this upgrade and introduction of DYDX as the Layer 1 token could bring significant changes to the dYdX protocol. It will be interesting to see the final outcome of the vote and the potential impact on the dYdX Chain.
