Dymension Network officially launched its mainnet on February 6, 2024, at 12:00 PM UTC, marking a significant milestone for the project and the blockchain industry. The mainnet launch also introduced DYM, the native token of the Dymension network, to the public, as well as enabled the deployment of RollApps on the network.
To celebrate this occasion, Dymension conducted an airdrop of 70,000,000 DYM (7% of the total supply) to various ecosystem users and partners.
DYM plays a pivotal role in the ecosystem, as it is used for network security, governance, and rewards.
What is Dymension?
Dymension is a revolutionary blockchain enabling users to easily create and deploy app-specific blockchains, called RollApps.
Co-founded by Yishay Harel, Dymension secured $6.73 million in funding from various investors in its initial funding round.
The RollApps are the front-end applications of the Dymension network, offering users a platform for diverse use cases such as gaming, DeFi, NFTs, and more. Each RollApp is fully customizable and optimized for its specific purpose, resulting in faster transactions, lower fees, and better security.
How Dymension Works
The entire Dymension network runs on ‘Dymension Hub’ (DH), a kind of back-end server for the network. The DH coordinates network activities, manages requests from RollApps, and ensures cohesive functionality within the ecosystem.
The Hub also handles the consensus process for all RollApps, delegating the heavy lifting to the validators and delegators who stake DYM.
Dymension also works with the already budding Data Availability (DA) Networks via Celestia and Avail. The two networks (more to join in the future) provide temporary data storage for Dymension, enhancing its efficiency and adaptability.
Example
EpicWarZone is a blockchain testnet on Dymension Hub that specializes only in web3 games. It has its own native coin, EWR, whose utility is to test decentralized applications (DApp) (AKA Web3 games) built on the EpicWarZone blockchain.
Moreover, Since Dymension is built on Cosmos, it supports smooth interoperability within the Cosmos ecosystem through the Inter-Blockchain Communication (IBC) protocol, fostering a connected and collaborative network of blockchains.
Bad Validator Set Causes Hiccups in Mainnet Launch
Dymension pushed its mainnet launch ahead by a few hours due to consensus issues among its validators.
According to the official announcement, one of the largest validators, Chorus One, which holds 34.8% of the network voting power, encountered node issues that prevented it from joining the consensus.
This resulted in a failure to reach the required 66% stake agreement among the validators, which is the standard threshold for most blockchains.
Chorus One stated that it followed the guidelines provided by the Dymension team, but faced a bug in the node software that caused the problem.
The hiccup was resolved as quickly as possible and Dymension mainnet finally launched
DYM Airdrop May Be the Largest After Celestia On Cosmos Ecosystem
The Dymension airdrop, also known as the Genesis Rolldrop, was open to eligible users who had participated in or held tokens from the following projects:
- Celestia: Users who staked TIA in Celestia as of December 19, 2023, qualify for 20,000,000 DYM (2% of the total supply).
- Ethereum L2s: Users who have used rollups such as Arbitrum and Optimism, have funds in multi-sig bridge contracts, or were included in previous airdrop lists, are eligible for 10,000,000 DYM (1% of the total supply).
- Cosmos: Users who had staked ATOM, stATOM, or OSMO by December 19, 2023, are eligible for 17,500,000 DYM (1.75% of the total supply).
- Solana: Users who held at least 1 SOL by December 19, 2023, on various protocols, are eligible for 10,000,000 DYM (1% of the total supply).
- NFTs: Holders of select NFT collections, such as Pudgy Penguins, Mad Lads, Tensorians, and Bad Kids, are eligible for 12,500,000 DYM (1.25% of the total supply).
Eligible users could claim their airdrop by visiting the official website and following the instructions.
NOTE: The claiming ended January 21, 2024, at 12:00 UTC, and the unclaimed balances were reallocated to those who had already claimed the airdrop.
DYM was listed on several exchanges shortly after. Some of the confirmed exchanges that will list DYM are Bybit, Bitfinex, and Kucoin.
Through the Dymension airdrop, users can get involved in the network and benefit from its innovative features and functionalities.
DYM Price Consolidates Around $5, Looks for Break Out to the Upside.
DYM began trading on multiple top centralized exchanges and almost immediately shot up to a high of $6.12 before retracing. Airdrop sellers cashed out and the price found a support between $4.83 and $5.35.
The rising trend of stake-to-drop airdrops has created a breed of airdrop farmers who hold on to and stake their bags in the hope of scoring more airdrops in the future. This trend is reflected in the price of recent airdrops.
Sitting at a $800 million market cap, DYM is expected to break out of this range and reclaim the previous ATH before venturing into price discovery.
Final Thoughts
Dymension is a game-changer in the blockchain space, as it offers a new and exciting way to create and deploy app-specific blockchains (A.K.A RollApps), with ease and speed. While Dymension is a new player in the block, it is already competing with lesser-known established networks in the same field, such as Eluvio, Thundercore, and Sepor.
Dymension is the future of modular blockchains; you don’t want to miss it.