DYM Token Launch: Hurdles, High Expectations

DYM token faced notable challenges including transactional errors, delays and delegation issues despite a massive initial valuation.

Despite a huge $5.2 billion fully diluted valuation on the first day of coming live, Dymension’s much-anticipated token DYM token had a rocky launch due to transactional mistakes, delays and delegation issues.

According to Coingecko, a coin’s fully diluted valuation is its theoretical market capitalization if all of its supply is in circulation and priced at its current market price.

Crypto enthusiasts eagerly awaited the distribution of the rollup platform’s currency DYM token to users of the Celestia, Solana and Ethereum blockchains according to predetermined criteria. Tokens valued at $390 million were distributed to these people through an airdrop.
If you’re looking for a modular settlement layer that will help you launch “roll apps” with ease, go no further than Dymension.

Regarding cryptocurrencies, modular blockchains aim to focus on a few particular users such gaming or trading, whereas roll-ups handle transactions on a second, quicker blockchain (called a layer 2) and then transfer the data back to the original blockchain.

However, Tuesday got off to a less-than-ideal start. For at least five hours, users said the blockchain couldn’t handle transactions due to the lengthy updating process of RPCs, which direct blockchain data to user wallets, some users were unable to add the blockchain to their crypto wallets.

Chorus One, a major validator encountered node problems in the early hours of the network, preventing validators from reaching consensus. In an X post, the team discussed these problems and said that the “failed launch” was probably due to its huge token holdings.

A few other validators and I encountered a (unidentified) problem with the software of the network node, Chorus One stated. We bet a lot of money on the genesis block. We were among the first to back Dymension. We were able to secure 34% ownership in the unsuccessful launch since other early-stage investors chose not to stake to Genesis.

Problems with Validators
Some DYM holders have voiced their disapproval of validator “Big Brain Staking” for its disproportionate impact on the network as of Wednesday morning, it held more than 35% of staked DYM tokens. Any blockchain network relies on entities called validators to keep it running and handle transactions.