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 Danny krypt👾 🔶️ [@DanielAgaba20](/creator/twitter/DanielAgaba20) on x 2100 followers
Created: 2025-07-16 16:37:32 UTC
Hey dYdX community,
With the launch and continued growth of the dYdX Chain, one of the most common questions we see is: How does staking actually work now?
The shift to our own sovereign Cosmos based blockchain (v4) fundamentally changed staking from a simple safety module to the core engine of the entire network Staking your $ethDYDX is no longer just about earning yield it's about actively securing the protocol and shaping its future.
Let's break it down.
What is Staking on the dYdX Chain?
At its heart, staking on the dYdX Chain is the process of locking up your $ethDYDX tokens to support the security and operations of the network.
The dYdX Chain uses a Proof of Stake (PoS) consensus mechanism This means that instead of miners solving complex puzzles (like in Proof of Work), a set of validators are chosen to validate transactions and create new blocks.
How are these validators chosen? Based on the total amount of $ethDYDX staked to them. By staking, you are essentially casting a vote of confidence in a validator, giving them more weight in the network.
The Two Pillars of Staking:
Rewards & Governance
When you stake your $ethDYDX, you get two primary benefits:
X. Earn Real Yield in $USDCThis is one of the most compelling features of the dYdX Chain Stakers earn rewards derived directly from the protocol's success.
Source of Rewards:
XXX% of all trading fees generated on the dYdX exchange are distributed to stakers.
Reward Currency:
Rewards are paid out in $USDC This isn't inflationary token issuance it's real yield from protocol revenue.
Distribution:
The rewards you receive are proportional to your share of the total staked $ethDYDX The more you stake, the larger your piece of the fee pie.
X. Govern the ProtocolStaking is synonymous with governance power Your staked $ethDYDX represents your voting weight on governance proposals that determine the future of @dYdX.
As a staker, you can vote on critical decisions, including,
Listing New Markets:
Deciding which new perpetual markets are added to the exchange.
Protocol Parameter Changes:
Adjusting key parameters like trading fees, margin requirements, and liquidation penalties.
Software Upgrades:
Approving new versions of the protocol software.
Treasury Spending:
Allocating funds from the community treasury.
By staking, you transition from being just a user to being a co owner of the protocol.
Validators & Delegation, How It Works in Practice
Most users won't run their own validator node, as it requires technical expertise and significant uptime.
Instead, the vast majority of stakers delegate their $ethDYDX to a public validator.
Delegation:
You choose a validator you trust and delegate your stake to them.
Your tokens never leave your wallet's custody, but they are locked and contribute to the validator's total stake
Validator Commission:
In exchange for their service of running a secure and reliable node, validators charge a commission a small percentage of the staking rewards you earn For example, if a validator has a X% commission, they will keep X% of your earned $USDC rewards, and you will receive the remaining 95%.
What Are the Risks? Be Aware.
Staking is powerful, but it's not risk free Here's what you need to know:
Slashing: This is the most significant risk If a validator misbehaves (e.g., by double signing a block or having extended downtime), a portion of their total stake including the tokens delegated to them can be slashed or destroyed by the protocol This makes choosing a reputable and reliable validator absolutely critical.
Unbonding Period:
When you decide to unstake your tokens, they enter a XX day unbonding period During this time, you do not earn rewards, and your tokens are not transferable.
This is a security measure for the network, but it means your capital is illiquid for that month.
Price Volatility:
Like any crypto asset, the value of $ethDYDX can fluctuate The value of your staked principal is subject to market movements.
Ready to Get Started?
Staking is the most direct way to contribute to the decentralization and success of dYdX while earning rewards for your participation.
To begin your staking journey, you'll typically need to:
Acquire $ethDYDX (the ERC XX token on Ethereum).
Use a supported wallet (like Keplr or Leap) and the official dYdX bridge to transfer your $ethDYDX to the dYdX Chain.
Explore the list of active validators on a block explorer or staking interface.
Choose a validator based on their uptime, commission rate, and community contributions.
Delegate your desired amount and start earning!
For more detailed information, always refer to the official dYdX Documentation.
Happy staking.
XX engagements
**Related Topics**
[how does](/topic/how-does)
[decentralized](/topic/decentralized)
[$cow](/topic/$cow)
[listing](/topic/listing)
[blockchain](/topic/blockchain)
[cosmos](/topic/cosmos)
[staking](/topic/staking)
[krypt](/topic/krypt)
[Post Link](https://x.com/DanielAgaba20/status/1945523205458075878)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Danny krypt👾 🔶️ @DanielAgaba20 on x 2100 followers
Created: 2025-07-16 16:37:32 UTC
Hey dYdX community,
With the launch and continued growth of the dYdX Chain, one of the most common questions we see is: How does staking actually work now?
The shift to our own sovereign Cosmos based blockchain (v4) fundamentally changed staking from a simple safety module to the core engine of the entire network Staking your $ethDYDX is no longer just about earning yield it's about actively securing the protocol and shaping its future.
Let's break it down.
What is Staking on the dYdX Chain? At its heart, staking on the dYdX Chain is the process of locking up your $ethDYDX tokens to support the security and operations of the network.
The dYdX Chain uses a Proof of Stake (PoS) consensus mechanism This means that instead of miners solving complex puzzles (like in Proof of Work), a set of validators are chosen to validate transactions and create new blocks.
How are these validators chosen? Based on the total amount of $ethDYDX staked to them. By staking, you are essentially casting a vote of confidence in a validator, giving them more weight in the network.
The Two Pillars of Staking: Rewards & Governance When you stake your $ethDYDX, you get two primary benefits:
X. Earn Real Yield in $USDCThis is one of the most compelling features of the dYdX Chain Stakers earn rewards derived directly from the protocol's success.
Source of Rewards: XXX% of all trading fees generated on the dYdX exchange are distributed to stakers.
Reward Currency: Rewards are paid out in $USDC This isn't inflationary token issuance it's real yield from protocol revenue.
Distribution: The rewards you receive are proportional to your share of the total staked $ethDYDX The more you stake, the larger your piece of the fee pie.
X. Govern the ProtocolStaking is synonymous with governance power Your staked $ethDYDX represents your voting weight on governance proposals that determine the future of @dYdX.
As a staker, you can vote on critical decisions, including, Listing New Markets: Deciding which new perpetual markets are added to the exchange.
Protocol Parameter Changes: Adjusting key parameters like trading fees, margin requirements, and liquidation penalties.
Software Upgrades: Approving new versions of the protocol software.
Treasury Spending: Allocating funds from the community treasury.
By staking, you transition from being just a user to being a co owner of the protocol.
Validators & Delegation, How It Works in Practice
Most users won't run their own validator node, as it requires technical expertise and significant uptime.
Instead, the vast majority of stakers delegate their $ethDYDX to a public validator.
Delegation: You choose a validator you trust and delegate your stake to them. Your tokens never leave your wallet's custody, but they are locked and contribute to the validator's total stake Validator Commission: In exchange for their service of running a secure and reliable node, validators charge a commission a small percentage of the staking rewards you earn For example, if a validator has a X% commission, they will keep X% of your earned $USDC rewards, and you will receive the remaining 95%.
What Are the Risks? Be Aware.
Staking is powerful, but it's not risk free Here's what you need to know:
Slashing: This is the most significant risk If a validator misbehaves (e.g., by double signing a block or having extended downtime), a portion of their total stake including the tokens delegated to them can be slashed or destroyed by the protocol This makes choosing a reputable and reliable validator absolutely critical.
Unbonding Period: When you decide to unstake your tokens, they enter a XX day unbonding period During this time, you do not earn rewards, and your tokens are not transferable.
This is a security measure for the network, but it means your capital is illiquid for that month.
Price Volatility: Like any crypto asset, the value of $ethDYDX can fluctuate The value of your staked principal is subject to market movements.
Ready to Get Started?
Staking is the most direct way to contribute to the decentralization and success of dYdX while earning rewards for your participation.
To begin your staking journey, you'll typically need to: Acquire $ethDYDX (the ERC XX token on Ethereum).
Use a supported wallet (like Keplr or Leap) and the official dYdX bridge to transfer your $ethDYDX to the dYdX Chain.
Explore the list of active validators on a block explorer or staking interface.
Choose a validator based on their uptime, commission rate, and community contributions.
Delegate your desired amount and start earning!
For more detailed information, always refer to the official dYdX Documentation.
Happy staking.
XX engagements
Related Topics how does decentralized $cow listing blockchain cosmos staking krypt