Genesis of the dYdX Chain represents a new chapter for the dYdX ecosystem marked by increased decentralization, superior UI & progress in democratizing access to financial opportunity.
Read the blog for full details
Genesis has 3 phases:
Pre-Genesis
Genesis
Post-Genesis
The Pre-Genesis phase pertains to the activities necessary to complete the Genesis File.
Genesis involves validators agreeing on the contents of the Genesis File, publishing the Genesis File, and thereby creating the first block of the blockchain by social consensus before the POS consensus algorithm begins block production.
The Post-Genesis phase encompasses all activities that would occur after Genesis.
The dYdX Operations subDAO proposes characterizing the potential Post-Genesis period into two distinct stages: Alpha and Beta.
Alpha - Network Gains Stability
Beta - Trading Enabled
To navigate this stage effectively, the dYdX Operations subDAO team, amongst others, will be monitoring specific benchmarks to help further analyze the dYdX Chain’s readiness for the Beta stage, such as
Sufficient DYDX tokens staked to a diverse validator set for securing the network, and
No further updates or fixes are expected, amongst other factors.
It’s imperative for stakeholders to not only understand but actively shape each phase, ensuring a robust, flexible & community-driven ecosystem.
dYdX Trading will not be participating or controlling mainnet genesis in any way. The potential genesis validators that have been selected were reached out to by the dYdX Operations subDAO based on several important criteria including performance and speed of action during the Public Testnet - not all Public Testnet validators were selected, for the sake of efficiency.
After genesis, anyone can join the set, so long as they bridge DYDX with the wethDYDX contract, and ensure they have enough stake (in case the number of validators grows higher than the active set number).
Where do the tokens from the selected validators come from? Will the Operations subDAO delegate DYDX? What will be the size of the active set? How many validators are in the genesis set?
dYdX Ops subDAO will not delegate DYDX for genesis, it’s up to the validators to allocate and bridge the tokens for genesis.
The active set cap we are currently considering is similar to testnet - 60.
We have reached out to 30, not all have bridged over on time, so we expect between 20 and 25 to launch the chain (it up to the validators to decide if they will participate)
To any cosmos validators, since I got some questions on this, this means that all validators will be responsible for their delegations.
There won’t be foundation delegations to keep validators in the active set.
There will be ~40 free spots for each validator considering 60 total spots.
dYdX will have to be bridged over from Ethereum to mint the DYDX token and self-delegate.
Barring any unforeseen last-minute adjustments, we’re excited to announce that we’ll soon be a part of the Genesis block.
It has come to our attention that the DYDX Foundation will not be involved in delegating or intervening in the delegation process. As a result, validators who do not currently possess DYDX tokens have purchased them from the market.
We strongly encourage all DYDX token holders who are interested in participating in governance to explore the validators’ websites and, if needed, get in touch with them directly through Telegram, Discord, email, or Twitter.
There are two crucial points to keep in mind:
It’s vital for the network’s voting power to be well-distributed (Nakamoto coefficient). An excessive imbalance could negatively impact network efficiency.
Delegating your tokens is an act of trust in a network participant, so it’s essential to choose your delegate carefully rather than simply selecting the first option that comes your way.
Frankly this will be very hard to ensure, in theory a whale could bridge quickly after genesis and delegate all tokens to themselves making them a validators with > 66% voting power and taking over the chain.
It is very important early bridging participants align themselves with keeping the set decentralized!
Pre-Genesis
Genesis
Post-Genesis
The Pre-Genesis phase pertains to the activities necessary to complete the Genesis File.
Genesis involves validators agreeing on the contents of the Genesis File, publishing the Genesis File, and thereby creating the first block of the blockchain by social consensus before the POS consensus algorithm begins block production.
The Post-Genesis phase encompasses all activities that would occur after Genesis.
Alpha - Network Gains Stability
Beta - Trading Enabled