dYdX Set for Major Token Unlock and Unveils New Features

By: Eliza Bennet

Decentralized exchange dYdX is gearing up to unlock over 33 million tokens worth approximately $90 million. This significant unlocking, scheduled for February 1, follows another sizable unlock that occurred on January 23. While some fear that a huge influx of dYdX tokens in the market could depress prices, others envision the gradual unlock strategy as a viable way to cushion any potential negative effects.

In the upcoming token unlock event, $49 million of tokens will be earmarked for investors while the dYdX team and future employees will receive approximately $27 million and $12.5 million respectively. Given the size and frequency of the unlock, concerns arise regarding the potential impact to the dYdX prices. However, the general sentiment remains positive as dYdX token continues to be on an uptrend, despite being down 35% from its December 2023 peak.

In other news, dYdX recently successfully deployed the v3 at a block height of 7147832. This update brings forward promising enhancements that impact trading efficiency, user experience, and functionality. dYdX V3 introduces the Interchain Accounts Host Module, aimed at improving interoperability and reducing the time required for users to switch between blockchains and manage assets. The update also introduces 'liquidation daemons', simplifying the management of margin positions and execution liquidations, making it more appealing to a larger user base.