The popular on-chain trading platform, DYDX, is finally unlocking its governance token, which was released a month ago. In August, DYDX announced the launch of its governance token and awarded the users who interacted with the protocol before July 26th, 2021, were rewarded with airdrops of the token.
So, while the tokens were claimable a month ago, they could not be transferred until today. This strategy used by dydx helped the exchange to increase the demand for the token, which in turn increased its price.
Also, the company offered several rewards for early token holders, such as trading fee discounts and yield in exchange for securing the protocol that added to the lure of the token. Earlier, only users who met the criteria were eligible to purchase and hold the token, which created a feeling of FOMO throughout the community, which will finally be satiated today.
What is a DYDX token?
DYDX token is a governance token that allows the native community to govern the Layer 2 protocol. dydx distributed the control of the protocol to the traders, liquidity providers, and partners using DYDX token to enhance its protocol and enable a robust ecosystem around governance, rewards, and staking.
“Our team has actively been researching how best to decentralize the protocol over time. Decentralization will be a gradual process that could ultimately result in a DAO [decentralized autonomous organization] to govern the community,” told the founder Antonio Juliano.
The governance token will be elemental in deciding the protocol’s future as the token holders will be able to vote on proposals of adding new features.
DYDX is a revolutionary exchange that allows the trading of perpetual contracts with low fees, deep liquidity, and up to 25 times buying power. The Layer 2 solution of dydx helps the platform offer low fees, zero gas costs, quick transactions, fast withdrawals, a mobile-friendly interface, secure and private API, and cross-margining abilities.
— Zhu Su ? (@zhusu) September 5, 2021
Following the unlocking of the DYDX token, current token holders can trade their tokens at a higher price, with the traders looking to get DYDX tokens and make a quick profit. The 36 days waiting period has helped the exchange boost the cost of the token significantly, but now the wait is finally over. Learn more about the DYDX token and the exchange at https://dydx.exchange/.