dYdX community approves 20M token stake as network activity soars
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:
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.
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