TechFlow news, the dYdX Foundation has published a post discussing the future of DYDX. The dYdX ecosystem is approaching a potential mainnet release of dYdX v4 open-source software. The dYdX Chain will be a PoS blockchain network that, if deployed on mainnet, will require an L1 protocol token to be staked by validators for securing the chain and enabling L1 token stakers to govern the network.
The dYdX community may choose to use DYDX—the governance token of dYdX v3—as the L1 token for dYdX Chain (if deployed following the mainnet launch). If this path is chosen, given that DYDX is currently an Ethereum-based ERC-20 token, the DYDX tokens would need to migrate from Ethereum to the dYdX Chain.
Ultimately, these decisions will be discussed and determined solely by the dYdX community through dYdX governance:
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1. Whether DYDX should become the L1 protocol token for dYdX Chain;
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2. Whether wethDYDX should have the same governance and utility functions as DYDX on dYdX v3;
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3. If the dYdX community decides that DYDX should be the L1 protocol token for dYdX Chain, how to organize and execute any required token migration and other necessary operations.
