According to Blockworks, decentralized exchange dYdX has entered the beta mainnet for its layer-1, enabling USDC staking rewards for the proof-of-stake blockchain. The move has drawn criticism from Crypto Twitter personalities who argue that dYdX staking is too friendly to insiders. Staking rewards are being paid out two weeks before a large set of tokens will be unlocked for dYdX founders, investors, employees, and consultants. The supply of locked tokens vested for dYdX insiders can still be staked and earn rewards. The project's founder maintains that dYdX is a long-term actor and is not seeking short-term gains.
Previously a layer-2 decentralized exchange (DEX) for perpetual swaps, dYdX is shifting to its own chain built with the Cosmos SDK. The move was motivated by the need for greater throughput to support the platform's order book. The dYdX Operations subDAO announced that the chain was entering its beta stage, and trading fees would accumulate to the validators and stakers securing the platform. dYdX founder Antonio Juliano stated that staking rewards would be paid out in USDC.
Critics argue that the timing of the fee-sharing activation is not a coincidence, as a Dec. 1 token unlock looms. Dennis Liu, a crypto venture investor and YouTuber, noted that dYdX's vesting schedule has been public for some time. However, he also pointed out that dYdX was less forthcoming about investors being able to stake their tranche of locked tokens. In response to the criticism, Juliano emphasized that the team has been around for 6.5 years and is focused on building something larger. DYdX's price is up 35% on the week of its beta mainnet launch, but the Dec. 1 unlock will raise its circulating supply by almost 80%, from 190 million to 340 million, according to TokenUnlock.