Dymension Gains 58% in First Day, But Questions Loom About Big Brain Staking

A day after Dymension, a Cosmos-based RollApp platform, airdropped 700 million tokens to users, DYM is trading for $5.60—around 58% higher than it was yesterday.

It now also has a staggering $5.6 billion fully diluted valuation, according to CoinGecko data. Keep in mind that fully diluted valuation pretends that a coin’s fully supply is circulating in the market, even if that isn’t the case.

The overwhelming majority of trading has occurred on Binance. Altogether, DYM has seen $511 million worth of trading volume in its first day, according to CoinGecko.

Dymension launched its mainnet on Tuesday and distributed more than $390 million in DYM tokens through an airdrop targeting early users and communities across Solana, Ethereum, and other networks.

The airdrop involved 700 million DYM tokens, representing 7% of the total supply.

Dymension is a layer-1 blockchain enabling developers to deploy app-specific chains, or “RollApps,” using Cosmos technology and the IBC protocol for cross-chain connectivity. The “genesis rolldrop” reached over a million unique wallets but only about half claimed their share.

But there’s already concerns about how staking has concentrated 35 million DYM tokens—and with it, more than 44% of total voting power—with just one validator: Big Brain Staking. The Dymension team hasn’t yet commented on the concentration of staked DYM tokens or said anything to reveal the identity of the validator.

In the early, volatile days of the DYM token dropping, the Dymension metrics dashboard still promises 65.32% APR on staked tokens. But that’s liable to change. It’s already dropped by 98% since yesterday.

DYM’s airdrop ranks as the second-largest by value so far of 2024. It follows decentralized exchange (DEX) aggregator Jupiter on Solana, which airdropped 1 billion JUP last week—which, at the current price, puts the total value of that drop at $527 million.

Dymension’s tokenomics include a total supply of 1 billion DYM, with 7% allocated for airdrops, aiming to distribute the native token to support the ecosystem’s security, growth, and the sustainability of RollApps.