The Dymension network, known for its goal of standardizing rollups using the Inter-Blockchain Communication Protocol (IBC), has successfully airdropped 70 million DYM tokens. But the event, eagerly awaited by the crypto community and reminiscent of Celestia’s successful airdrop in the Cosmos ecosystem, has been overshadowed by technical difficulties following the mainnet launch.
Read More: What Is a Crypto Airdrop? A Beginner’s Guide
At a current price of $5.8, the airdrop is worth $406 million. Dymension’s market capitalization is around $860 million, with a fully diluted valuation (FDV) of $5.8 billion.
Interestingly, this FDV is in line with Jupiter, which just recently did a massive airdrop as well, and almost a week after its launch, has a $5.2 billion FDV.
Mainnet Launch Challenges
However, the launch of Dymension’s mainnet encountered significant hurdles. A key issue arose with Chorus One, a major validator in the Dymension ecosystem, which experienced technical difficulties. This problem hampered the network’s ability to reach consensus, a critical component for the blockchain’s operation and security.
Chorus One, holding a significant 34.8% of the network’s voting power, faced node issues that prevented effective participation in the consensus process. This led to the network’s inability to reach the required consensus for operation, regardless of the status of other validators.
Validators in blockchain networks play a vital role in verifying and storing data to ensure its integrity. For a network like Dymension, which emphasizes modular blockchain architecture for enhanced performance and customization, a stable and efficient group of validators is crucial.
Despite these challenges, the airdrop proceeded as scheduled. For those who participated in the manual claim period, the DYM tokens have been distributed. Dymension is also planning an incentive program to enhance network liquidity post-mainnet, subject to governance approval.
Who Was Eligible for the Airdrop?
- Celestia: Delegators of TIA as of December 19, 2023, with a minimum of 1 token and a cap of 5,000 tokens staked.
- Ethereum L2s: Active addresses on Arbitrum, Optimism, Base, and Blast, based on metrics like amounts bridged and activity on the rollup.
- Cosmos: Involves ATOM and stATOM holders, as well as Osmosis delegators, with specific minimum and maximum token requirements.
- Solana: Active addresses compiled from various protocols as of December 19, 2023.
- NFTs: Holders of specific NFT collections as of December 19, 2023.
Disclosure: Juan Aranovich, the author of the article, received 77 DYM tokens for being an EigenLayer restaker.
Disclosure: For informational purposes only. Participants should be aware of the risks associated with airdrops, including market volatility, regulatory changes, and the inherent risks of the crypto market. Nothing contained herein is intended as financial or investing advice, and due diligence and research into Dymension’s fundamentals are advised before participating, because investments in financial assets including cryptocurrency are speculative, illiquid, and involve a high risk of loss.
