DYDX, the native token of the newly-released dYdX chain, has risen by more than 20% in the past 24 hours, just 16 days before more than $500 million worth of tokens will be unlocked to early investors and core team members. The surge in the DYDX price comes as the project, previously just a decentralized exchange (DEX), launched its layer-1 blockchain based on Cosmos – a move that enables validators to receive a portion of trading revenue as a reward for staking.
Over the past 30 days, DYDX has more than doubled in price as speculators anticipated the token's migration from Ethereum to the dYdX chain. However, a large token unlock in just over two weeks has the potential to damp spirits. There are 179 million DYDX tokens in circulation, and the upcoming unlock will increase that to 395 million, according to token.unlocks.
DYdX CEO Antonio Juliano has attempted to remedy that by incentivizing staking, a method that involves locking tokens on a blockchain to receive rewards. Juliano revealed on Tuesday that stakers will receive "cold hard USDC," for staking and that validators will receive 100% of trading fees. USDC is a dollar-pegged stablecoin.