With the debut of its much-awaited blockchain, dYdX has unveiled a novel tokenomics strategy. The biggest modification is that trading costs will now be expressed in USD Coin (USDC), a stablecoin tied to the US dollar, on the decentralised derivatives marketplace. USDC, a cryptocurrency maintained and created by Circle, says that each token is backed by an equivalent amount of dollars in a variety of assets, such as Treasuries and corporate bonds. The cryptocurrency tracks the price of the US dollar.
The new function that DYDX, the project’s native governance token, would play was also disclosed by the dYdX Foundation. The exchange’s governance token can now be staked since it is a proof-of-stake blockchain built on Cosmos and optimised for quick trades and cheap costs. By staking tokens and protecting the network, token holders can become DYDX chain validators. Alternatively, they can assign other validators to handle their holdings. Furthermore, validators and stakers will get a portion of all fees earned from trading on the site. Token Terminal data indicates that dYdX has already made over $5.6 million in fee revenue.