dYdX discovered an error in the airdrop process but price still increased more than 300% after listing Binance
Not long ago, as AZCoin News reported, the dYdX exchange announced the launch of a governance token, accompanied by the good news of DYDX airdrops a large number of tokens to users who meet certain conditions. And recently, dYdX initiated the distribution of its long-awaited governance token on Wednesday. However, dYdX encountered an error on the day of the distribution of governance tokens to the community. However, after listing on the Binance exchange, the price of dYdX has increased by more than 300% on the day.
DYDX/USDT 4-hour chart | Source: Binance
DeFi trading platform dYdX opens access to its governance token
DYDX is the governance token of the dYdX layer 2 protocol. DYDX grants holders the right to propose and vote on changes to the protocol, earn staking rewards and enjoy trading fee discounts. The DeFi platform first announced it planned to launch a token last month with an accompanying governance plan. It included plans for a safety staking pool, with users who stake DYDX receiving a yield in the same token.
However, shortly after the launch of the token distribution program on September 8, the development team discovered an error in the deployment of the safety staking pool contract shortly after it went live.
After the Safety Staking Pool launch, we discovered an error in the deployment process for the Safety Staking Pool smart contract. In response, access to the Safety Pool was temporarily removed from https://t.co/ADuVmVnAWg
? No user funds are at risk. All funds are recoverable.
— dYdX Foundation ? (@dydxfoundation) September 8, 2021
It was because of this that access to the pool was blocked when the team tried to create an open-source fix for the contract. Due to the new governance model, the upgrade with the fix will have to go through a governance vote during this initial phase. In a post explaining the incident, the dYdX Foundation said that no user funds were at risk and that all will be recoverable in the coming days.
“The design of the Safety Staking Pool included deposits being locked for a minimum of 1 epoch (28 days). Assuming an upgrade proposal can be passed within the next week, no user impact will have occurred, & the few early stakers will still be able to withdraw their funds on time,” they said.
This vote could include multiple measures to further compensate early staking participants for the rewards they would have received had the bug not occurred. The issue is still being debated in a thread on the dYdX community forum.
The governance model allocated 7.5% of the tokens to retroactive rewards and 25% to user trading rewards. Those who completed a single transaction on the platform in the past three years were eligible for the airdrop. The price of the token reached $12 upon release. For this reason, some claimed to have walked away with tens of thousands of dollars worth of tokens as a result of the airdrop.
However, yesterday Binance announced the listing of DYDX in the Innovation Zone and will open trading for some trading pairs at 2021-09-09 02:00 (UTC). And now you can see the bullish here.
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