Dymension

Introduction to Dymension (DYM)

The world of blockchain has much to offer in the way of potential use cases, whether it be for the medical, finance, mining, real estate, or various other sectors.

However, for it to fully achieve that potential, scalability is a necessity, and right now, the more of that there is within the landscape the better.

For that many solutions have been popping up claiming to increase throughput substantially, but there is one method that’s clearly standing out more.

Over the last few years, modular development has become quite a big trend now within the blockchain sector.

Within modular designs, blockchain layers, like settlement, data availability, and application, are typically separated into different, independently operating modules to solve those limitations associated with traditional monolithic designs.

Identifying the inherent inflexibility regarding that all-in-one conventional Layer 1 framework, i.e., the one that Ethereum and Bitcoin have, the influx of developers looking towards the modular approach is increasing.

Why? because the potential to significantly improve scalability and functionality alongside the speeding up of network deployment and development is really there.

Now, a newly released platform known as Dymension (DYM) seeks to integrate those principles of modularity within blockchain rollups, or rather, “RollApps,” if you plan on using the terminology of this project.

Seeking to become an Internet of sorts for RollApp networks, Dymension offers consensus mechanisms and the fundamental security needed to support the functionality of such application-specific chains.

Constructed using the Cosmos SDK, Dymension employs the IBC, aka the Inter-Blockchain Communication protocol to allow for cross-chain communication and interoperability within the various Layer 1 and 2 networks out there.

With its inventive approach, the project seeks to become a leading force within this modular rollup niche.

For application operators and developers, the platform provides flexibility, scalability, and lower latency and executional costs, which is not a blend that you get to see that often.

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The Genesis of Dymension

Dymension was founded by Barry Kuts and Yishay Harel, and it was during April of 2022 that it was first announced, with the aim of being the “home for easily deployable and lightning fast app-chains, called RollApps.” Then, in September 2022, an updated roadmap was released regarding the launches of its testnet and mainnet.

A year later, in February 2023, the Dymension Hub 35-C, i.e., its permissioned non-incentivized testnet had gone live. During that same year, in August, Froopyland went live, which was permissionless and incentivized.

On February 6, 2024, the Dymension mainnet was released. At the same time, DYM, Dymension’s native token, went live too with the Genesis Rolldrop distributing 70.00 million tokens, or 7% of that initial total token supply.

So far, the mainnet is functional and live, although there aren’t any RollApps deployed yet, and a lot of the features are currently on hold because of that. So, these features will only go live once those RollApps launch.

Understanding Dymension’s Technology

To sum up what it is one more time, Dymension is a modular Layer 1 blockchain platform supporting the deployment and development of RollApps, which are these L2 networks that can utilize the underlying consensus mechanism of Dymension while operating with their own custom execution logic.

So, the platform serves as this hub where developers may launch their own RollApps, or optimistic rollups, all with those principles of modularity, of course.

Moreover, these RollApps will also use Dymension’s validator network if they are to secure their operations while achieving consensus.

The RollApps are also granted the option of externally sourcing the data availability layer through providers such as Near Protocol (NEAR) and Celestia (TIA).

Basically, RollApps are L2 platforms built with one application in mind, and these are exactly what makes them application-specific chains, unique or distinct from those standard rollups that are only designed to host several decentralized applications (dApps).

RollApps can offer immense scalability and cost benefits when compared to direct transacting on Layer 1s.

Besides using that Cosmos SDK, which just so happens to be the sector’s leading blockchain developmental framework, Dymension has also introduced the RDK, aka the RollApp Development Kit, i.e., its own development framework.

This is so that the functionality already brought about by the Cosmos SDK can be extended, all to support seamless, modular RollApp development.

Not to mention the incorporation of IBC as well, which will enable RollApps to interact with each other across the whole network, while also establishing connections with any other IBC-centric Cosmos chains.

Besides RollApps, there’s the Dymension Hub too, which is the actual settlement layer. Additionally, it’s a shared settlement layer used by every RollApp running on the platform.

Composed of validator nodes, the hub is tasked with verifying and processing transactional blocks submitted by RollApp Sequencers, which are specialized nodes that compile transactional blocks and interact with this hub.

All in all, the hub is the main mechanism that ensures network integrity and on-chain consensus.

DYM Tokenomics

Let’s now look at some tokenomics, and see how DYM fares in that regard. Starting with the price, it’s currently trading at around $3.70.

The market capitalization is more than $543 million, with its fully diluted valuation being more than $3.75 billion and the daily trading volume being over $16.8 million.

When it comes to the supply end of things, both its total and maximum supply are exactly the same and over 1 billion, and its circulating supply is around 146 million tokens.

The entire DYM supply, on the other hand, is scheduled to release over a span of five years, or by early 2029.

As for the token allocation, 20% of that supply will be distributed to the core contributing team, 14% to backers, 5% to the community pool, 8% to the public allocation, 33% to the incentives manager, and finally, 20% to the ecosystem and R&D.

The Utility of DYM Tokens

The utility underlying this token is pretty standard, in that DYM may only be used as a staking mechanism to operate validator nodes, delegate to validators, and vote on various governance proposals.

Right now, its potential in this regard is being hampered by the fact that there aren’t any RollApps, but that should change in the coming years, hopefully.

How to Acquire and Use DYM Tokens

So, are you interested in the future prospects of this network and are looking to get some DYM tokens now? Luckily for you, you can get the token from several exchanges, including the popular ones like Binance, Kraken, KuCoin, and more.

But regardless of where you buy it, know that the process will likely vary depending on the exchange you’ve chosen.

On some exchanges, it might be even more of a hassle. For instance, you might have to complete KYC, the length of which will also vary based on what’s required, so just keep that in mind.

Still, once you’ve acquired them, you should consider keeping them somewhere safe, as you never know when there could be an exploit out there or when you might get hacked, which will cost you all your funds, and this is especially true given the nature of cryptocurrencies.

So, the best way to solve that would probably be to get yourself a cold wallet that will store your funds offline. If the FTX saga has taught us anything, it’s that cold wallets are our best bet when it comes to security.

Dymension’s Impact on DeFi and dApps

If DeFi is to achieve the goals that many associate with it, then scalability is more of a need than ever, which is precisely why networks like Dymension are needed, so that such a thing can be met and DeFi can advance further.

Simply put, higher transactional costs and lower fees will go a long way in improving the DeFi experience, and networks like Dymension can be one of the ways to facilitate that.

Market Analysis: DYM Token’s Performance

Earlier, we stated that the price for the DYM token is currently around $3.70. But when you look at its all-time high, which it hit in February of this year and was $8.66, it appears to have fallen quite a bit since that high.

Overall, by looking at the chart the token appears to be on a downward trend, so if you’re thinking of buying the token as an investment, you might want to wait a bit and see if it falls any further.

You don’t want to buy the token at a higher price when you can do so at a lower later on, which could be soon.

Future Roadmap and Prospects for Dymension

There aren’t any timelines announced here, so there isn’t a roadmap that you’d see on other network, but it does plan to launch a couple of stages, namely The Singular Point, 2D Permissioned RollApps, 3D Permissioned RollApps, and finally the 4D Internet of RollApps.

Conclusion: The Strategic Importance of Dymension

With the fairly recent release of the DYM mainnet and token, Dymension is taking those first steps within the modular blockchain space.

But even during such an early stage, the fact that it managed to gather the interest that it did, shows that the potential for growth is there, despite the price taking a bit of a hit recently.

We Coin-Labs.com provides only objective information about Dymension.
Therefore, we are not responsible for the investment decision in Dymension and the resulting loss.

Dymension Basics

Here are some factors that investors should consider before investing in Dymension.

Cryptocurrency Features	Dymension ()
Publisher or Developers
Headquarters (Registration Number)
Symbol
Platform
Published Date (CMC Registration)	2024-10-02
Max Supply	958,691,258,152,859

Reliability Score of Dymension in 2024

These are indexes mesuring the investment reliability of Dymension conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 0 Exchanges
Number of Available Pairs Worldwide	1 Pairs
Market Cap of the Cryptocurrency	6,683,329 USD (Rank #1295)

The table above shows the result of investment suitability evaluation for Dymension.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Dymension Price

Here are the price and recent trading volume of Dymension. (Data of 2024-10-03 00:15:00)

Price Items	Price and Trading Volume of Dymension
Dymension Price	0.000 USD
Price Change 24h	-5.48%
Price Change 7d	-4.99%
Trading Volume 24h	11 USD
Trading Volume Change 24h	-82.47%

Cryptocurrency Metadata

You can check the development status and social media information of Dymension through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Dymension

Here are the top ten world crypto exchanges where traders can buy Dymension in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Not listed
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Not listed

Frequently Asked Questions