What Is Dymension DYM? Dymension Token Price Prediction

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6 Feb 2024

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1. WHAT IS DYMENSION DYM?

What is Dymension DYM? Dymension is a layer 1 blockchain designed on the modular blockchain model, built on the Cosmos SDK, and capable of interacting with the Cosmos ecosystem through the IBC bridge.
The Dymension network includes various deployed applications called RollApps. These RollApps are applications that allow users to interact directly, such as games, DeFi platforms, or NFT platforms.

What is Dymension DYM? (Source: dymension.xyz)

2. WHAT IS THE STRUCTURE OF DYMENSION?

The structure of Dymension comprises three components: RollApp, Dymension Hub, and the DA network.

2.1. RollApp

RollApp is developed specifically for application-specific rollups and is built on the RollApp Development Kit (Dymension RDK). The RollApp development tool of Dymension RDK is created by adding new modules and modifying existing modules of the Cosmos SDK.
Dymension RDK comprises two main components:

Server: This is the designated application for deploying custom business logic along with pre-packaged modules for RollApps.
Client: This is an alternative solution to Tendermint responsible for block production, inter-chain communication, and connecting inter-layer networks.

2.2. Dymension Hub

This is a blockchain utilizing the Delegated Proof-of-Stake consensus algorithm, decentralized, with its native token DYM serving as the liquidity center for RollApp applications within the network.
Dymension Hub provides for RollApp and the Dymension ecosystem:

Security: RollApp transactions are processed by the network of validators of Dymension Hub along with the fraud-resistant design of the Dymension protocol.
Interactivity: Enables RollApps to communicate and transact with each other and allows RollApp users to connect with applications or blockchains within the IBC ecosystem.
Liquidity: Asset pricing, routing, token swapping, and liquidity sharing among RollApps within the Dymension ecosystem.

What is Dymension structure? | Source: dymension.xyz

2.3. Data Availability (DA) Network

It serves as a database to provide data for RollApps when needed. Data in the Dymension DA network is stored temporarily and distributed to ensure cost-effectiveness and decentralization.

3. FEATURES OF DYMENSION

Currently, Dymension crypto is still in the testnet phase with prominent features such as RollApp, Hub, IBC Bridge, and Liquidity.

RollApp: It aggregates data related to developed RollApp applications within the Dymension ecosystem, along with statistics such as total TVL on RollApps, deployed apps, total IBC transfers, and total active addresses.
Hub: The hub feature will provide visual statistics and charts of the Dymension blockchain, including block time statistics, the number of RollApps, total DYM token supply, assets transferred via IBC, staking data, etc.
IBC Bridge: The IBC Bridge allows users to directly convert tokens between different blockchains or RollApps on the Dymension platform.
Liquidity: Dymension's liquidity features include AMM swap functionality allowing users to trade tokens, aggregating liquidity pools, compiling information about tokens, especially price fluctuations, and liquidity metrics.

4. HOW DOES DYMENSION WORK?

The Dymension platform operates with an average processing time of 0.2 seconds with a maximum of 20,000 transactions. When users request transaction orders on RollApp, these transactions will be authenticated by the sequencer and placed into a block.
At this point, the sequencer will send the block containing call data transactions to the Dymension Hub and return transaction evidence to the data availability layer. The DA layer will return a link leading to stored evidence, the sequencer will confirm the current state of the RollApp, and send this state information along with the link to the Dymension Hub.

How does Dymension work? | Source: dymension.xyz

5. WHAT IS A DYMENSION TOKEN?

DYM is the token of Dymension and plays an extremely important role in ensuring the security, growth, and sustainability of RollApps.

5.1 Dymension Token Price

According to the latest price, the Dymension token is $4.00 and remains unchanged from the previous day. However, this price is not fixed and will change hourly, daily. Therefore, you need to keep track of information to update the price of the DYM token regularly.

DYM token price | Source: coinmarketcap.com

5.2 Dymension Tokenomics

Some general information about the DYM token is as follows:

Token name: Dymension.
Ticker: DYM.
Blockchain: Updating…
Contract: Updating...
Token type: Updating...
Total Dymension Token Supply: 1,000,000,000 DYM.
Circulating Supply: Updating...

However, it's important to note that Dymension has not yet launched its official mainnet, and the DYM token has not been released.

5.3 Dymension Token Allocation

The allocation of DYM tokens is as follows:

Incentive Manager: 33%, equivalent to 330,000,000 DYM tokens.
Core Contributing Team: 20%, equivalent to 200,000,000 DYM tokens.
Ecosystem & R&D: 20%, equivalent to 200,000,000 DYM tokens.
Backers: 14%, equivalent to 140,000,000 DYM tokens.
Public allocation: 8%, equivalent to 80,000,000 DYM tokens.
Community Pool: 5%, equivalent to 50,000,000 DYM tokens.

Dymension token allocation | Source: dymension.xyz

5.4 Dymension Token Release Schedule

According to the plan, the Dymension token launch is expected to occur in February 2024. For specific timing, you can refer to the following information:

DYM Deposits: (As soon as feasible following TGE) opens on February 6, 2024.
DYM Listing: (If liquidity criteria are completed) after February 6, 2024, 3 PM UTC
DYM Withdrawals: To open at 10 AM UTC on February 7, 2024.

6. HOW TO RECEIVE AIRDROP DYM TOKEN?

Information about Dymension's token airdrop to users has been widely announced on the platform. However, only users meeting the following conditions will be eligible for the airdrop:

Stake TIA tokens on the Celestia platform.
Utilize layer 2 networks including Arbitrum, Optimism, Base, and Blast.
Use DEXs on Cosmos Hub, Stride, and Osmosis.
Utilize the Wormhole bridge, Tensor marketplace, and NFT distribution platform Drip.Haus on the Solana blockchain.
Hold NFTs including Pudgy Penguins, Mad Lads, Tensorians, and Bad Kids.
Use the bridge to transfer assets to the Dymension network from USDC, TIA, USDT, ATOM, ETH, SOL tokens.

To claim tokens, you need to access the Dymension token address at https://genesis.dymension.xyz. The total number of projects to be airdropped to users is 70,000,000 DYM tokens (7% of the total supply).
If you want to claim, you should visit the Dymension homepage and check your wallet for the airdrop. In case you receive the Dymension airdrop token, you simply need to select "Claim" and follow the instructions.

7. DYMENSION FAQS

If you are just starting to learn about Dymension, you may refer to some frequently asked questions below:

7.1 Is Dymension A Good Investment?

Providing an answer to whether Dymension is a good investment or not is quite challenging and will depend on the strategy as well as the level of risk you are willing to accept. Dymension's modular blockchain architecture offers potential advantages in terms of scalability, flexibility, and security compared to traditional blockchains.
However, the cryptocurrency market is inherently volatile, and DYM is still a relatively new and unproven token. Its price could fluctuate significantly. If you are someone who is willing to take risks and has a high tolerance for risk, Dymension can be a suitable investment.

7.2 Dymension Token Price Prediction

Dymension is a new project set to release its token shortly and has also garnered a lot of attention from cryptocurrency investors. Despite not being officially released yet, the current price of Dymension is $4.00. Therefore, the price of DYM has the potential to grow in the future.

7.3 Should I Buy a DYM Token?

Although considered worth investing in, before deciding to purchase DYM tokens, you should thoroughly research information about the Dymension token because the cryptocurrency market is always fluctuating. If you can accept the risks and believe that this blockchain platform can grow, feel free to invest boldly.
If you are interested in Dymension, the first thing to do is to understand what is Dymension DYM. It is a promising blockchain project with innovative features. However, investing in any cryptocurrency project comes with risks. Therefore, you should carefully consider before deciding to invest in Dymension.