Dymension Introduces DYM Sponsorships Staking Voting System For DYM Stakers
In Brief
Dymension unveiled the introduction of DYM Sponsorships, a new core function to be integrated as part of the upcoming 3D upgrade.
Modular blockchain for rollups, Dymension unveiled the introduction of DYM Sponsorships, a new core function to be integrated as part of the upcoming 3D upgrade.
DYM Sponsorship introduces a weight-based staking voting system for DYM stakers. This system is tasked with the responsibility of determining the allocation of on-chain incentive flows between RollApps and liquidity pools, dynamically assessing the optimal method for distributing tokens.
Dymension stakers oversee the incentive manager, an on-chain module designed to distribute DYM tokens and drive platform growth. With DYM Sponsorships, DYM stakers are empowered to determine the allocation of incentives. This is facilitated through an on-chain weight-based voting system based on staked DYM, resulting in support for RollApps and liquidity boosts for selected pools within the Dymension liquidity layer.
On-chain governance, referred to as Dymocracy, establishes a foundational incentive stream for liquidity and RollApp Sequencers. These incentives are distributed based on the weights determined by Sponsorships. Users who stake their DYM tokens with active validators earn Sponsorship voting rights corresponding to the amount they have staked. Subsequently, they have the flexibility to allocate these sponsorship rights to any combination of RollApps and/or liquidity pools they prefer to support.
Dymension Introduces eIBC Open Market To Streamline RollApp Liquidity Bridging
Dymension operates as a Layer 1 network functioning as a modular settlement and consensus layer, while its application-specific Layer 2 networks serve as modular execution layers known as “RollApps.” These RollApps are “enshrined,” meaning Dymension is aware of them and is optimized for preserving the state of each one. This stands in contrast to Ethereum Layer 2 networks, which rely on smart contracts on Ethereum for settlement and data availability.
Recently, Dymension unveiled its latest initiative, the eIBC open market, aimed at simplifying the process of bridging liquidity from RollApps on the mainnet. The eIBC protocol represents an innovative system constructed on top of Inter-blockchain communication (IBC), aimed at expediting withdrawals from rollups.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
