What is Dymension (DYM)?

The DYM token garnered significant attention within the crypto community thanks to a generous airdrop distributed to users across Solana, Ethereum, Celestia, and other blockchains, totaling an impressive 70 million DYM tokens! Yet, it wasn’t solely the airdrop that captured interest; Dymension’s innovative technology also played a pivotal role. Dymension introduces RollApps, a modular blockchain concept simplifying the development of decentralized applications (dApps) catering to diverse needs like GameFi, NFTs, DeFi, and beyond. What exactly is Dymension, and how does its platform unleash fresh opportunities for both users and developers? Dive deeper into these questions as we explore further in this article.

Article Summary

• 🔁 Dymension is a modular blockchain network that enables the creation of RollApps with Dymension Hub at its core. RollApps are modular blockchains that are easily deployed on the Dymension network.
• 💸 Every RollApp functions independently, equipped with its own native token. This setup enables seamless transactions without the customary extra fees often tied to major platforms such as Ethereum.
• 🤑 The DYM token is an ecosystem asset that plays a role in network security, governance, and liquidity within the Dymension ecosystem.
• 🪂 In late January 2024, Dymension airdropped its token, distributing 70 million DYM, 7% of its overall supply, valued at more than 390 million US dollars.

What is Dymension (DYM)?

Dymension is a modular blockchain network built using Cosmos SDK to facilitate the creation of RollApps with Dymension Hub at its core. RollApps are modular appchains connected to the Dymension network. You can build dApps easily and quickly with just a few ‘clicks’.

This platform introduces the concept of Internet RollApps, with RollApps (layer 2) and Dymension Hub (layer 1). RollApps are seamlessly integrated with Dymension Hub, offering inherent security, liquidity, and connectivity. This is similar to Cosmos Hub and IBC.

Quoted from its whitepaper, this platform operates like a web application where users interact with RollApps (front end). While Dymension serves as the coordinator for the entire ecosystem (back end).

You can explore RollApps in Froopyland (testnet) to see the list of RollApps available on the Dymension platform. Currently, there are 1,152 RollApps with 1.4 million active wallets and a Total Value Locked (TVL) of almost 13 million DYM bridged to RollApps.

RollApps are similar to Cosmos App-Chains but use outsourcing to achieve consensus with Dymension Hub. RollApps use Dymension Hub (layer 1) to secure user funds and the Data Availability (DA) network to publish their transaction data.

At the end of January 2024, Dymension executed an airdrop of DYM tokens to users on Solana, Ethereum, Celestia, and other blockchains, adhering to specific criteria. This airdrop involved 70 million DYM tokens, including 7% of its overall supply, valued at over 390 million US dollars. Following the launch, the DYM token surged in value by 58% to reach 5.6 US dollars.

Who is the Founder of Dymension?

Yishay Harel, the current CEO of Dymension, founded Dymension. With a background in the crypto sphere dating back to 2016, Harel observed the rollup technology employed on Ethereum’s L2 in 2021. In an effort to streamline rollup implementation for developers, he subsequently developed the Dymension RDK (RollApp Development Kit) on Cosmos.

Rollup technology offers a simple and successful business model: low cost with high returns. However, L2 upgrades with custom implementations led to fragmented and less secure user experiences, reducing the advantages of rollups and modular blockchains.

Dymension introduced standardization of rollups with IBC (Inter-Blockchain Communication Protocol), similar to ERC token standardization. This paved the way for the emergence of a true Internet of RollApps.

In early February 2023, Dymension raised USD 6.7 million in funding. This amount came from a private round led by Big Brain Holdings and Stratos with participation from DraftKings’ Shalom Meckenzie, DAO Matchbox, and others.

How Dymension (DYM) Works

In this platform, each RollApp operates autonomously by using its own native tokens for network fees. This means that users make transactions directly with the RollApp, without having to go through major platforms like Ethereum.

This direct approach not only simplifies transactions but also presents opportunities to enhance the intrinsic value of these native tokens and broaden their range of applications.

Dymension operates through a network of interconnected components, including Sequencers, Dymension Hub, RollApps, and data availability (DA) networks.

• Dymension Hub: Dymension Hub serves as the coordination center of the Dymension ecosystem. Sequencers publish the updated RollApp status root to Dymension Hub. Dymension Hub is also responsible for verifying proof of fraud submitted by Sequencers and ensuring data integrity.
• RollApps: RollApps are easy-to-deploy modular blockchains that integrate with Dymension Hub. RollApps can maintain an average processing time of 0.2 seconds with a maximum TPS of approximately 20,000 transactions.
• Data Availability (DA) Network: This is a decentralized network where RollApps transaction data is published. Full Nodes of the RollApp network can request data from the data availability network to verify the root status of the RollApp. Dymension is connected with Celestia and Avail DA.

Dymension’s work process starts with Sequencers validating and processing transactions from users. Once the transaction is processed, the Sequencers publish the block containing the transaction to the Dymension Hub and the availability network. Full Nodes of the RollApp network can access data from the data availability network to verify the root state of the RollApp.

Advantages of Dymension

• EVM and IBC compatibility: Dymension provides two options for RollApp developers. Developers can either utilize the RollApp Development Kit (RDK) or create a RollApp EVM.
• Dymension Hub security: Each RollApp has security integrated with Dymension Hub, such as L2 Ethereum which utilizes Ethereum security.
• Crypto UX: With Dymension, developers can create RollApps easily through the RDK. Users can deposit from Ethereum and other blockchains with a single transaction through Dymension Hub. RollApp also does not fragment liquidity, unlike Ethereum.
• Flexibility: RollApps can choose which virtual machine (VM) to use, what their business model is, and which token supports their chain (native, USDC, ETH, DYM, or other options).

DYM Token as an Investment

DYM serves as the native token within the Dymension ecosystem. It plays multiple roles, including ensuring network security through DPoS, enabling governance with voting rights, facilitating cross-chain interoperability, providing liquidity for Automated Market Makers (AMMs), and supporting staking.

DYM has a maximum supply of 1 billion DYM tokens and 14.6% of the tokens have been circulated in the market. The team allocates the most tokens for incentives at 33% which are managed by the protocol DAO for the purpose of Rolldrop Seasons and AMM Incentives. The rest goes to ecosystem development 20%, core team 20%, supporting partners 14%, public allocation 8% and community 5%.

As of February 16, 2023, DYM price USD 7.8, marking a significant increase from its initial listing price of 0.2 US dollars. Remarkably, Dymension now holds the 64th position by market capitalization, standing at 1.1 billion US dollars. This achievement is particularly noteworthy considering that the token was launched earlier in the same year.

Since the mainnet launch on February 6, 2024, the this platform core team has continued to develop the Dymension roadmap. The main focus will remain on developing and enhancing the Dymension Hub as the coordinating center of the ecosystem. This includes expanding IBC connectivity and bridging to various blockchain networks, as well as optimizing network governance and security.

In addition, this platform is also continuing to drive the expansion of the RollApps network by introducing more modular applications. These developments will include 2D Permissioned RollApps, 3D Permissionless RollApps, and 4D Internet of RollApps phases.

Conclusion

Dymension is a modular blockchain network designed to facilitate the development of RollApps, with Dymension Hub serving as its central component. Each RollApp functions independently, utilizing its own native token, thereby streamlining transactions without any extra fees.

Following the launch of the DYM token in early February 2024, it demonstrated remarkable performance by securing a position in the top 100 crypto asset list based on its market capitalization. This achievement underscores the promising potential of this platform as a newcomer in the cryptocurrency space.

How to Buy DYM Tokens on Pintu

After knowing what Dymention is, you can start investing in DYM by buying it on the Pintu app. Ypu can buy another cryptocurrencies such as BTC, ETH, ATOM, and others safely and easily on Pintu. Pintu diligently evaluates all its crypto assets, highlighting the significance of being cautious.

Pintu is also compatible with popular wallets such as Metamask to facilitate your transactions. Download the Pintu app on the Play Store and App Store! Your security is guaranteed because Pintu is regulated and supervised by Bappebti and Kominfo.

Aside from buying and trading crypto assets, you can expand your knowledge about cryptocurrencies through various Pintu Academy articles. Updated weekly, all Pintu Academy articles are made for knowledge and educational purposes, not as financial advice.

References

1. Dymension, Presenting Dymension, Medium, accessed 13 February 2024.
2. Dymension, Dymension Mainnet is Live, Medium, accessed 13 February 2024.
3. Kim Bazak, Dymension Raises $6.7m and Releases Testnet for a Network of Modular Layer-2 RollApps, Crypto Slate, diakses 13 Februari 2024.
4. Ekin Albayrak, Modular Blockchains; Dymension, Binance Square, accessed 13 February 2024.
5. ilaNihas, 🌍Avail: Deploying Your First Dymension RollApp (Pt. 1), Medium, accessed 13 February 2024.