At its core, Dymension is a decentralized platform that redefines the concept of digital asset management. It's not merely about transactions; it's about the seamless fusion of technology and imagination to unlock boundless opportunities.
Today, we will cover the following topics:
- About Dymension (DYM)
- How does Dymension work?
- Main features of Dymension
- Technical Analysis
- Why is DYM The Coin of the Week?
About Dymension (DYM)
What is Dymension?
Dymension, a layer 1 blockchain, pioneers RollApps, modular blockchains revolutionizing Web3.
Powered by the RollApp Development Kit (RDK), akin to Cosmos SDK, where developers create diverse blockchain apps swiftly.
Inspired by blockchain 'rollups,' RollApps enhance scalability by consolidating transactions.
Seamlessly integrating with Cosmos via the IBC bridge, Dymension boasts a modular architecture for easy upgrades.
Recent achievements include a $6.7 million private capital raise from investors like Big Brain Holdings.
DYM Token
The DYM token, native to the Dymension ecosystem, is pivotal for achieving sustainable consensus between supply and demand.
Here's how the DYM token is used within the Dymension ecosystem:
Staking
DYM tokens serve as collateral and rewards within the Delegated Proof-of-Stake (DPoS) system, offering an APR of 23.5%.
Governance
DYM holders actively participate in voting processes that influence the development of the ecosystem, including decisions on network upgrades and resource allocation.
Fee Payment
DYM tokens are utilized for paying fees associated with inter-chain transactions, such as transferring DYM between Dymension and Celestia.
Liquidity Addition
With the integration of an automated market maker in the Dymension Hub, DYM tokens can be added to liquidity pools, potentially earning rewards for liquidity providers and facilitating efficient asset exchange.
Burning Mechanisms
DYM tokens are systematically burned within the ecosystem through connection fee checks and protocol exchange fees, contributing to the overall reduction of token supply and potentially increasing token value over time.
Transaction Fees Distribution
Fees collected from the demand for block space are distributed among DYM validators and their participants, providing an additional incentive for network participation and contribution.
Supply Locking
RollApp bonds reduce the amount of circulating DYM tokens, enhancing network security and stability by decreasing token supply and potentially increasing token value through scarcity.
DYM Tokenomics
DYM’s total supply is 1 billion, with 146 million circulating as of April 2024.
- DAO Incentives - 33%
- Ecosystem and R&D - 20%
- Core Development Team - 20%
- Backers - 14%
- Public Allocations - 8%
- Community Pool (DAO) - 5%
How does Dymension work?
Dymension revolutionizes Rollap applications, spanning gaming, DeFi, NFTs, and more, leveraging its integrated AMM for swift asset routing and liquidity.
It's a pioneer in Web3 interoperability, linking diverse RollApps via the IBC protocol for seamless data and value transfer across blockchains.
RollApps represent modular blockchains created using the RollApp Development Kit (RDK), built upon the foundation of the Cosmos SDK.
They serve as second-layer solutions designed to process transactions off-chain, thus improving network scalability and reducing operational expenses.
With RollApps boasting lightning-fast processing and high TPS, users execute trades swiftly.
Transactions are verified by Sequencers, included in blocks, and sent to Dymension Hub for processing.
This streamlined mechanism ensures efficient transaction handling, enhancing scalability and user experiences within the ecosystem.
Main features of Dymension
Dymension blockchain offers a suite of innovative features and characteristics that set it apart:
Flexible Development Kit
The Dymension RollApp Development Kit (RDK) empowers users to create and launch their own blockchains without consensus, providing maximum flexibility and minimal overhead costs.
Enhanced Security
By avoiding unreliable bridges for smart contracts, Dymension ensures blockchain security, utilizing multi-signature bridges and IBC packet accumulators, which confirm the security of funds deposited in RollApps.
Multi-layered Protocol
Dymension operates as a multi-layered blockchain protocol, equipped with tools for creating and deploying specific applications with reduced resource consumption, offering scalability and efficiency.
Advanced Virtual Machine
With its Rollup-Virtual-Machine (RVM), Dymension simulates the RollApp execution environment, processing transactions deterministically and ensuring accuracy and reliability.
Consensus Mechanism
Built on blockchain technology with a Proof-of-Stake consensus mechanism provided by the SDK, Dymension integrates Tendermint software, facilitating seamless connectivity between network layers and ensuring user-friendly interfaces for both users and developers.
Modular Structure
Dymension adopts a modular structure, allowing users to choose their preferred execution environment and data storage options at a low cost, enhancing flexibility and customization.
Optimistic Rollup Technology
Leveraging Optimistic Rollup technology and Fraud Proof to verify transactions, Dymension ensures efficiency and security in transaction processing.
Asset Transfer with IBC Bridge
Dymension enables seamless asset transfer between RollApps and layer 1 chains via the IBC Bridge, ensuring safety and security by verifying trades through the Dymension Hub.
Technical Analysis
From a technical perspective, DYM has been hovering within a range between $4.8 and $8.75.
Currently, DYM is approaching the lower boundary of this range. As long as the support at $4.8 holds, we will be looking for buy setups on lower timeframes, anticipating a continuation towards the $8 resistance level.
Why is DYM The Coin of the Week?
Although Dymension is a new blockchain, we've chosen it for this week because it offers a comprehensive blockchain solution that prioritizes security, flexibility, and efficiency, catering to the diverse needs of users and developers alike. It has also attracted interest from major validators and funds
Comparing it to other projects like Celestia, which is also a modular blockchain, we can clearly notice that Dymension has a lot of room to grow
Moreover, from a technical perspective, it is currently hovering around the lower bound of its range, providing us with an opportunity to capitalize on the upcoming bullish impulse movement.
Thanks for tuning in to this week's coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
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