In decentralised systems, infrastructure is power. And on the dYdX Chain, that infrastructure is secured, governed, and operated by validators - entities whose role extends far beyond block production.
Staking DYDX is not a passive act. It is a governance decision - one that directly shapes protocol security, decentralisation, and the economic dynamics of the network. This article explores why validator selection matters, how to evaluate your options, and how staking contributes to the long-term health of the dYdX protocol.
The Role of Validators on the dYdX Chain
Validators perform critical operational functions:
- They produce blocks and validate transactions.
- They maintain the in-memory orderbook that powers trading on the dYdX Chain.
The validator set is therefore not just a technical layer; it is the infrastructure backbone of the protocol. How stake is distributed across this set impacts decentralisation, uptime, and trading reliability.
Staking as a Governance Signal
When you stake DYDX, you're doing more than earning yield. You are:
- Increasing a validator's stake weight and voting power
- Sharing in the protocol rewards generated through trading activity
- Signalling alignment with the validator’s values, performance, and governance behaviour
In this way, staking becomes both an operational and political action. Your choice of validator determines who has influence over protocol upgrades, fee allocation, and security.
How to Choose a Validator
Evaluating validators involves a blend of technical scrutiny and governance awareness. Key criteria include:
- Uptime: Are they reliably online? Missed blocks reduce staking rewards and degrade network performance.
- Commission: What percentage of staking rewards do they retain?
- Governance Participation: Do they vote on proposals and engage constructively on the governance forum?
- Reputation: Are they transparent, active, and responsive?
This is not a decision to take lightly. Your delegation helps shape the validator set - and therefore the operational and political outcomes of the dYdX Chain.
Resources for Validator Research
To make an informed delegation decision, explore these resources:
- Mintscan.io: Live validator stats, uptime history, governance verdicts and commission rates
- dYdX Governance Forum: Validator voting behaviour and proposal commentary
Delegation Is Flexible and Non-Custodial
Staking DYDX on the dYdX Chain does not involve giving up custody. You retain full control over your tokens throughout the process. Delegation can be changed at any time, allowing you to respond to new validator information or performance metrics.
Note: You can only re-delegate once per 21-day period. For more on how to re-delegate, visit the Foundation’s step-by-step guide.
Why It Matters
Validator selection is often overlooked, but it is foundational to the long-term integrity of the protocol.
Staking choices determine:
- Who secures the chain
- How governance power is distributed
- How protocol rewards are allocated
As the dYdX Chain continues to evolve, participating in validator selection is not just recommended. It is an essential part of aligning with the protocol’s future. To get started, review validators, assess your options, and stake responsibly. Learn more about how to stake here
About the dYdX Foundation
Legitimacy and Disclaimer
Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.
dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain's infrastructure.
The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.
The dYdX Chain software (including dYdX Unlimited) is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components (including dYdX Unlimited) be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software (including dYdX Unlimited) or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software, i ncluding dYdX Unlimited (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof, including dYdX Unlimited) “AS IS, WHERE IS”.
Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.
Depositing into the MegaVault carries risks. Do your own research and make sure to understand the risks before depositing funds. MegaVault returns are not guaranteed and may fluctuate over time depending on multiple factors. MegaVault returns may be negative and you may lose your entire investment.The dYdX Foundation does not operate or has control over the MegaVault and has not been involved in the development, deployment and operation of any component of the dYdX Unlimited software (including the MegaVault).
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