the price skyrockets and your airdrop is now worth over USD 100,000

Airdrops have been the preferred method of crypto enthusiasts for years as they offer projects a way to reward early adopters and increase token distribution.

The latest project to surprise its community of followers with retroactive rewards for its newly minted token is dYdX, a decentralized non-custodial derivatives exchange that operates on a layer 2 version of the Ethereum network (ETH).

Data of CoinGecko show that on their first day of trading in the markets, DYDX is trading at a price of $ 10.28 as of press time after hitting an intraday high of $ 14.24.

DYDX 5-minute chart. Source: CoinGecko

The amount of tokens received by each user was determined based on their previous trading activity on the platform, with the lowest level user receiving 310 tokens for trading at least a dollar on the exchange, and the highest level user earning 9,529 tokens for volumes over a million dollars.

Token distribution scheme. Source: dYdX Foundation

At the daily maximum of $ 14.24, the airdrop had a value of between $ 4,414 and $ 135,692, if we take as an example an average user who traded between $ 1,000 and $ 10,000 on the platform, he received 1,163 DYDX valued at $ 16,561.

The current trend to switch to layer 2 solutions

The retroactive “release” of the DYDX governance token is a major step for the protocol on its way to becoming a fully decentralized, community-owned platform. It is another sign of a broader shift by a growing number of projects moving to layer 2 solutions in order to operate in a cheaper commission environment.

Many blockchain projects are migrating to various cross-chain and layer two solutions like Polygon, and dYdX was indeed one of the first decentralized exchanges to announce that it would launch on StarkWare, a layer two solution that it developed together with StarkEx.

According data of dYdX, at the close of the first mining era, there were 32,700 DYDX holders and the platform had moved USD 13.8 billion in monthly trade volume and USD 141 million in market maker capital has been locked in.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risks, you must do your own research when making a decision.

Keep reading:

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on pocket
Pocket
Share on whatsapp
WhatsApp

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.