On October 26, the dYdX Foundation officially pivoted from running an Ethereum layer-2 blockchain to supporting the layer-1 dYdX Chain (DYDX). This move can create more demand for its native token DYDX, which validators are staking to secure the network, and users are spending for the gas fees.
In an announcement sent to Finbold on October 27, the dYdX Foundation highlighted the confirmation of the first block (‘Genesis’) by the dYdX Chain mainnet validators. While stating that its protocol is an open-source software run by a permissionless network.
“The dYdX Chain software is solely open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain software be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software are permissionless and disintermediated, subject to the terms of the applicable licenses and code.”
— The dYdX Foundation
DYDX 1-day price chart. Source: Finbold
Notably, the increased utility of this digital asset on the dYdX Chain can bring a renewed demand for DYDX. Its circulating supply is currently set at 1 billion units. However, this amount could change in the future, subject to governance decisions, as stated in the dYdX Foundation blog.
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