To protect dYdX’s DEX, the community decided to vote to stake $20 million worth of their native token, $DYDX.

The staking approach is famous for preserving a platform against security threats. Let’s discover why the Dydx community took this decision.


The DYdX community handles the decision to use Stride’s staking services on Cosmos Blockchain. During the vote, with 81% of participants, 91% supported a stake of $20 million worth of dYdX. This approach of casting votes proves how decentralized the dYdX governance model is. dYdX is helpful to the community in many ways. For example, users trade perpetual futures contracts with it.

On the other hand, dYdX DAO oversees the governance activities of dydx. You can propose ideas, vote for upgrades, and make protocol decisions via the DAO. The DAO governance aligns with dYdX’s goal of running a community-driven trading experience. Now, via the dYdX DAO, its community proposed to stake $20 million to improve its security.

This means that when a platform is safe, it makes its community, users, and potential investors can have trust in the platform. 

Impact of Staking $20 Million on Security

There will be a boost in security, encouraging the community to diversify by staking. The staking approach is a good use of funds, like a regular staking system. According to dYdX founder Antonio MJuliano, ‘ the yield from fees generated will be continuously used via Stride to buy DYDX.’ The fees generated will accumulate and be returned to the treasury.

Staking the dYdX token is one way of protecting the DEX against malicious activities. The act of staking prevents the possibility of disrupting network operations. In Dydx network, a staker with one-third of the total voting power can halt on-chain activities. If contenders were to get two-thirds of the voting power, they could get away with user and community funds.

The whole process of voting to stake $20 million is to ensure security. The platform prioritizes the security of your assets over anything.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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