Make dydx token great again

dYdX Chain
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I apologize for the somewhat clickbait headline, but I believe it’s time to discuss what’s happening with the dYdX token. I remind you that we hit ATL today.

My belief is that if you’re building something in the crypto world, for most potential clients and observers, the token price and its dynamics are indicators of the project’s success and attention. This is absolutely native marketing for the project.

It doesn’t matter what technologies you have, what you write in your press releases, which metrics you reference, or which bloggers you give interviews to and advertise with; if the token is in “down only” mode, that becomes irrelevant.

I understand that there were issues with regulations, the team being in the U.S., and so on, but after the U.S. president launched his meme coin, it seems like it’s time to act more transparently.

Since the launch of MegaVault, the staking yield is basically non-existent for such a risky asset.

I think we need to come up with additional utility for the token; otherwise, no marketing budget or collaboration with KOLs will save it.

6 Likes
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thanks Real, I think we’re in a hole that’s hard or almost impossible to get out of at this point. I’ll just give my personal view of the situation.

we had the lead with v3 because we offered a good product that users liked, a nice and responsive UI and an overall positive trading experience with almost no limitations. Although v4 is a great initiative, and we should be striving for full decentralization long term, I think the technology just isn’t there yet to provide a good trading experience for perpetuals. Combine that with other factors like:

  • migration complexity (seems to be okay now)
  • unlocks (has improved, about 80% has already been unlocked)
  • liquidity fragmentation (both exchange and DYDX liquidity, although DYDX will improve in June with the shut down of the ETH bridge)
  • regulatory uncertainty (improving as you’ve mentioned)
  • competition (that’s a tough one, because it has already sucked all liqudity/users)

the irony is that DYDX is still the most technologically advanced perp trading platform, but that doesn’t matter if the trading experience isn’t good. And it hasn’t been good since the launch of v4 due to technical issues, limitations and complexity

as I see it, we can obviously work to improve the platform (better UI, more features, etc.), but it’s just not possible to compete with more centralized platforms at this point. The best we can do is keep at it, have an overhaul and reduce unnecessary costs and overhead to stay lean, and wait for technological breakthroughs (which will likely come in the next 2-5 years)

4 Likes
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I agree with what you wrote. However, 2-5 years is a long time in the modern world; it essentially represents a full cycle in crypto. I’d also like to add that there’s a complete uncertainty in the team’s plans for the token. I don’t see the team participating in discussions on the forum.

We consider people who hold the token as stakeholders in the project, but with the launch of MegaVault, the staking yield has become non-existent. Essentially, the stakeholders are now the ones providing liquidity, and the utilization of the vaults is really low.

I think it would be a great idea to have some quotas for providing liquidity in MegaVault. Perhaps a veStake system, where you stake a certain amount of tokens for a specific period to receive a larger quota, or some other system.

I struggle to understand the necessity of the token at all. The overall percentage of staked tokens is one of the lowest across all Cosmos networks, which poses a serious security threat. The TVL is already significantly higher than the value of the staked tokens. Since the majority of tokens are provided by the Treasury subDAO, Foundation or dydx trading team (Yes, it wasn’t difficult for me to identify those wallets) , I have certain suspicions about the decentralization and independence of the validators’ decisions. If the main competitive advantage that was emphasized is decentralization, then personally, I don’t see it. It essentially resembles some sort of oligopoly.

Regarding the rewards program, there was quite a deep discussion on this topic, but then Chaos Labs came up with a program that is even less retail-oriented than the previous one.

Grants program: Same expensive people, often same expensive grantees (hello, Max Lattice research), an absolutely non-existent community aspect of the grants. No accountability for the results.

It’s starting to feel like the project is turning from something ambitious into a money grab for a few insiders.

I see nothing but hate on crypto Twitter, and I just don’t understand where the project is headed.

I really hope someone from the team can clarify the direction of movement.

3 Likes
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Agreed! I think you said out what most $DYDX holders’ heart.

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(post deleted by author)

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Well done RealVovochka .
Token price and its dynamics are indicators of the project’s success and attention.