dYdX community approves 20M token stake as network activity soars$DYDX
The dYdX community approved staking 20 million DYDX tokens as a security measure as the protocol experiences a spike in trading activity.
The dYdX community approved staking 20 million DYDX tokens to strengthen security as the decentralized crypto exchange (DEX) experiences a surge in activity.
The proposal passed on April 6 with 91.7% of votes in favor, allowing tokens from the community treasury worth over $61 million at current prices to be staked with liquid staking protocol Stride. According to dYdX, the move is a response to the growing trading activity on the protocol:
“The rate of DYDX being staked to validators has plateaued and deposits to the exchange are growing at a tremendous pace. Over $140M USDC is held in dYdX v4, of which roughly $100M arrived in the past week.”
Staking is the process of locking cryptocurrency to support a blockchain network’s operations, like processing transactions or validating new blocks. Participants, or “stakers,” commit their tokens as stakes in the network. In return for their service and the risks—such as potential token value fluctuation — stakers receive rewards, often in the form of additional tokens.
By staking its native tokens, the DEX is seeking to shield its network from a possible control attack, similar to a 51% attack. This type of attack happens when a malicious entity gains control over a significant amount of a blockchain’s hashing power, enabling the network to be manipulated. Decentralizing voting power prevents such attacks from occurring.
Source: https://cointelegraph.com/news/dydx-approves-20m-token-stake-network-activity-soars?utm_source=Telegram&utm_medium=social
