Dymension - the next layer of the Modular stack
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As a follow on from the Celestia (3,3) thesis we posted last week, this article will look at Dymension (DYM) which will be the first airdrop available for TIA stakers to claim… Given the highly technical nature of the modular sector, my aim here is to explain what Dymension are trying to do in simple terms to provide a basis of understanding.
What is Dymension?
Dymension consists of the Dymension Hub (a Layer 1) and an “internet of RollApps” which would be a network of standardised app-specific Layer 2s.
The Dymension Hub acts as a liquidity, security and interoperability layer which serves the RollApps built on top, the RollApps themselves are super easy-to-deploy modular blockchains which utilise the Dymension Hub for securing their funds and Data Availability networks to publish tx data (Celestia being the first supported network hence the airdrop to TIA stakers). By acting as an embedded liquidity layer, the Dymension Hub also enables efficient swapping and token routing among RollApps (similar to how Ethereum offers a similar role for ETH/Stablecoins amongst L2s).
By using IBC (Inter-Blockchain Communication Protocol) their approach seeks to standardise building or launching a rollup similar to how the ERC standard did for tokens on the Ethereum network. They claim that this framework is more secure than the multisig bridging model commonly used in the Ethereum ecosystem as the RollApps are IBC-connected and therefore inherit the security of the Dymension Hub itself. Equally, the Dymension framework should significantly reduce friction for developers to come to market as developers can deploy RollApps in a few clicks using the Dymension RollApp Development Kit (RDK). The RDK allows anyone to build RollApps from an existing model with modules for on-chain governance, token issuance, and much more.
The following visual shows the different roles assumed by each player in the Dymension modular stack (h/t 0xNairolf) :
With over 13,000 RollApps deployed on testnet, there seems to be signifcant demand to experiment with the Dymension stack which bodes well for their mainnet launch.
Token / Valuation Expectations
The “Genesis Rolldrop” (or DYM airdrop) represents 7% of supply and will be airdropped to:
TIA, ATOM and OSMO stakers
Select ETH L2 and Solana users
Holders of certain NFT collections
Pudgy Penguins
Mad Lads
Tensorians
Bad Kids
With 70m tokens dropped of a 1b total supply the airdrop represents a meaningful portion of supply. DYM is already trading at around $3 on the pre-launch market on Aevo. At launch there will be 14% of supply circulating which at a $1bn market cap would equate to roughly $7/DYM. A $1bn market cap would put DYM as a #72 ranked project which feels reasonable:
Surprisingly, not all eligible wallets claimed for the DYM airdrop. This means that claimants will be receiving extra DYM tokens. For reference, midcurves like Taiki did not claim the Celestia airdrop and as a result, TIA claimers received 3x the amount when claims went live. Redistribution of non-claimed DYM:
Conclusion
From our perspective, Dymension are building something truly differentiated which looks to be the next prominent piece of the budding modular stack. It is impossible to know whether the 13,000 RollApps deployed on testnet are genuine or just sybils so post-mainnet deployments will be an interesting indicators in this regard. As comfy TIA stakers we are certainly thankful for this one and looking forward to more such drops!
There is also speculation that $DYM stakers may receive airdrops from the RollApps that launch using Dymension as the Settlement Layer. Though this is pure speculation, all it takes is one sizable airdrop to DYM stakers to start the “stake TIA and DYM for airdrops” narrative to kick into high gear.
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