Why is there so much hype around DYM?

• DYM is the native token of Dymension, a blockchain platform that standardizes rollups with IBC.
• The launch of Dymension faced initial hiccups, with users reporting transaction processing issues for at least five hours.
• Despite these challenges, the price of DYM has seen a significant increase.
• The validator known as “Big Brain Staking” controls over 35% of staked DYM tokens, leading to scrutiny from DYM holders.

What is a DYM token (dimension)?

DYM is the native token of Dymension, a blockchain platform that aims to standardize rollups with the Inter-Blockchain Communication Protocol (IBC), similar to how tokens were standardized with ERC. Dymension provides all the tools and infrastructure needed to easily launch “rollApps,” a fusion of “rollup,” representing a layer-2 blockchain, and “dApp,” denoting a decentralized application.

Dymension is a modular blockchain platform built on the Cosmos SDK, aiming to address scalability limitations through roll-up technology. This promises efficient transactions and increased throughput, compared to traditional blockchains. As a layer-1 blockchain, Dymension seeks to be interoperable with other chains, facilitating seamless asset transfers and fostering a broader blockchain ecosystem.

What is the Inter-Blockchain Communication Protocol?

The Inter-Blockchain Communication Protocol (IBC) is an open-source protocol that allows independent blockchains to communicate directly and exchange assets. It was created to connect independent blockchains to one another, making them interoperable.

Overcoming Initial Hiccups

The launch of the Dymension blockchain encountered difficulties. Users reported that the blockchain was unable to process transactions for a minimum of five hours. Some users also faced challenges adding the blockchain to their crypto wallets, as RPCs, which direct blockchain data to user wallets, took several minutes to update.

Why is DYM’s price going up so much?

Despite the initial challenges, the DYM token has seen a significant increase in value. This surge in price comes amid the Dymension mainnet launch and the airdrop of DYM tokens worth $390 million. The Dymension (DYM) price gained another 30% after facing a minor pullback.

Several factors contributed to this:

• Early Hype: The project garnered significant attention before launch, fueled by its innovative approach and partnerships with established players. This anticipation likely translated into initial buying pressure.
• Decentralized Finance (DeFi) Integration: Dymension plans to integrate with various DeFi protocols, opening up possibilities for lending, borrowing, and other financial activities. This potential utility could be driving investor interest.
• Tokenomics: Dymension employs an inflationary token model, initially rewarding participants through token distribution. This might incentivize participation and contribute to price appreciation.

DYM: A Controversial Airdrop

As of Wednesday morning, the validator known as “Big Brain Staking” controls more than 35% of staked DYM tokens. This has drawn scrutiny from DYM holders due to its significant influence over the network. Validators are entities that maintain any blockchain network and process transactions.

This situation raised questions about potential centralization and network control. This concentration could influence governance decisions and undermine the intended decentralization of the network.

The Dymension team has acknowledged the concerns and is exploring measures to address validator concentration. These might include incentivizing participation from additional validators and implementing mechanisms to distribute staking power more evenly.