Popular crypto applications have been focusing on transitioning to their own networks for the past two years. Vitalik Buterin recently criticized the Maker team for their goals. The narrative of a multi-chain future is evolving towards applications transitioning to their own chains. The DYDX team is also transitioning to its own mainnet to ensure decentralization and meet the demand from the community.
dYdX has launched the “alpha mainnet” for version 4 today. Validators recently created the genesis block of the dYdX Chain. The launch of this alpha network is actually a beginning rather than an end. We can say that this is the first step towards transitioning to the fourth version of the DeFi platform and a community-managed layer1 network.
dYdX Foundation CEO Charles d’Haussy said the following:
“After years of development work, 5 test networks involving more than 60 validators and top trading firms, dYdX Chain has been officially launched by the community and the DAO. This marks a tremendous leap that represents a new chapter defined by complete decentralization for the dYdX ecosystem.”
DYDX has hosted a cumulative volume of $1 trillion since 2020 and operates on the Ethereum layer2 solution StarkEx. This version started with processes such as the first phase and stress tests.
We mentioned that the mainnet launch could be near when the open-source network code is released. The team made a major move while the BTC price was above $33,000 in order to take advantage of the bullish period. However, more importantly, there will be future updates in the upcoming process. We have seen projects in the crypto space that did not believe in what they have always claimed.
For example, protocols that hold full control of management claimed to be decentralized. Or ventures unrelated to the metaverse claimed to be the future themselves. DYDX, on the other hand, aims to achieve true decentralization as preparation for the expected increase in regulatory pressure in the DeFi space.
They are taking significant steps in this regard. The release of the open-source code allows developers from all over the world to build the network in a decentralized manner. The transformation of the company behind the protocol into a non-profit organization also aims to protect the project from potential DeFi litigation chains, starting with the first steps.
We cannot know how much US or EU regulators will appreciate these efforts, but if DYDX manages to stand out from the arrows when DeFi pressure increases in a few months, it will be an extremely positive development for the token price.