The US-based dYdX Trading unveiled the open source code, marking its progressive March to launching the dYdX Chain’s mainnet. The release signals the US firm behind the decentralized derivatives exchange dYdX is edging closer to realizing an independent blockchain.
The launch initiates the dYdX Chain profiled as the upgraded version – dYdX V4, for the derivatives exchange.
dYdX Trading Targets Transparency and Security
dYdX Trading chief executive Antonio Juliano revealed in a recent statement that the dYdX Chain brings increased transparency. The founder added that the dYdX chain is poised to deliver improved security to the derivatives trading security. In particular, the executive indicated that the trading would run solely via the source code while allowing users to exercise control.
Essentially, the upgrade features the dYdX ditching the Ethereum-based layer2 blockchain to transition to the Cosmos-based proof-of-stake (POS) protocol. The upgrade orients the platform to a more secure protocol governed by the holders of the native token DYDX.
The dYdX Trading unveiled the code as a governance initiative. The proposal requires the DYDX token holders to approve. Besides, the proposal will count on the support of the third-party validators, community contributors, and nodes to facilitate the transition to the dYdX mainnet.
Juliano restated that the existing dYdX exchange will operate uninterruptedly during the dYdX mainnet launch. The executive echoes a previous press release that both exchanges would run concurrently for an undisclosed period.
The source code release comes seven months following the dYdX Chain testament unveiling in March this year. Since March, the chain has undergone several upgrades.
dYdX marketing executive Nathan Cha reiterated that the testnet has functioned well without displaying kinks. The release cites a report by blockchain-based auditor Informal System ruling out the existence of any critical errors within the open-source code.
Cha confirmed that dYdX Trading will not undertake any role in running and operating the infrastructure linked to the dYdX chain. Instead, the dYdX will run through third parties’ governance input.
dYdX Transitions to Public Benefit Corporation (PBC)
dYdX has, in an October 17 announcement, confirmed transitioning the company charter to the public benefit corporation (PBC). The PBC is set to help fulfill the dual purpose of accruing profits while guaranteeing social and environmental benefits.
dYdX targets leveraging the PBC to build and support protocols alongside members promoting and facilitating economic and tech advancement of the community. The corporation input will also feature democratizing access to financial opportunity via the open source. The fulfillment of this objective will involve tapping into the decentralized crypto asset exchanges.
Juliano indicated that the amendment is inevitable since it is now integrated into the company’s charter. It would allow the company to strike a balance in the interests of multiple stakeholders besides the shareholders.
The PBC expands dYdX Trading scope to factor benefits to the Web3 community and consumers of its products and services. As the developers of the open-source software, dYdX Trading will cease exercising ownership rights and control over the fees, development, fees, and infrastructure.
dYdX Laying Ground to Permissionless Platform
Cha observed that dYdX Chain will embrace the permissionless operation model to enable users to access the platform regardless of location. The executive indicated that the current interface blocks US users alongside those hailing from countries bearing economic sanctions, such as Cuba, Iran, Myanmar, and North Korea. Juliano tweeted that the latest version will still lock out US users.
Juliano emphasized that dYdX Trading will not exercise control over the validators. Instead, staking will dictate the control, considering it deploys an open-source code.
While Juliano admitted that the management cannot enforce the utilization of open source, the license provides for its revocation if the utilization is proven as unlawful activity. However, the firm intervention will involve offering technology support to non-US clients.
Cha reassured the dYdX Trading commitment to comply with the existing laws and policies. The executive urged the third parties running the new dYdX Chain to prioritize compliance, given their oversight role in running the infrastructure.
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