From DYDX to MAGIC, a review of self-built public chain projects that convert tokens into Gas Tokens.
Exploring DYDX to MAGIC A Comprehensive Review of Self-Built Public Chain Projects Utilizing Token Conversion to Gas TokensIn the development of the current blockchain world, the trend of project teams developing their own public chains is becoming more and more obvious. This not only greatly enriches the use cases of their own tokens but also becomes a key driving force for tokens to upgrade to Gas Tokens. This strategic transformation fundamentally expands the scope and influence of tokens, transforming them from a simple value carrier to the core driving force behind the entire ecosystem.
This transformation is significant, as it signifies the diversification and deepening of token functionality. Tokens are now not just a medium of exchange but also a key element in driving project development, innovation, and realizing the project’s vision. These tokens, when used as Gas Tokens in new chains, not only ensure the efficiency of the network but also bring more autonomy and flexibility to the project.
Today, we are witnessing a key moment: tokens are no longer just a medium of exchange, they are becoming crucial in driving project development, innovation, and self-realization. Next, we will explore the projects that are leading the way in this field and see how they are using token upgrades to Gas Tokens to enhance their own ecosystems and market influence.
Representative of Upgrading Tokens to Gas Tokens: DYDX, the Self-built Public Chain
When discussing classic cases of upgrading tokens to Gas Tokens, we cannot overlook the strategic transformation of dYdX. Faced with the high transaction costs of Ethereum, dYdX adopted a bold and visionary strategy: partnering with StarkWare, they established their own chain independent of the Ethereum ecosystem. The key to this strategy lies in StarkWare’s technology, which allows dYdX to process more diverse transactions while maintaining scalability and low costs. This transformation not only allowed dYdX to regain its leading position in the industry but also achieved true decentralization in the blockchain field.
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While building its own chain, dYdX took an important step: transforming its token into a Gas Token. This transformation is not just an adjustment to its business model but a comprehensive reshaping of the token’s role and value. $DYDX, as a Gas Token, plays a role far beyond paying transaction fees – it becomes crucial to the network governance and incentive mechanism. This transformation has had a significant impact on the operational efficiency and cost control of the dYdX network, greatly enhancing its ecosystem’s closed-loop operation capability and long-term sustainability.
dYdX’s upgrade of its token to Gas Token and the construction of its own chain demonstrate its practical actions based on a deep understanding of decentralization and market demand. dYdX’s actions have caused significant reactions in the market. The price of its DYDX token reached its peak on November 15th, with an increase of up to 15.66%.
DYDX token price trend
This not only enhances dYdX’s position in the competitive blockchain field, but also sets a new benchmark for the entire industry in terms of token functionality expansion and ecosystem building. dYdX’s strategy is not just an effective response to the current market environment, but also reflects insights and leadership in the future development trends of blockchain technology. This strategic shift in the application of blockchain technology and token economic models signifies a mature and thoughtful direction of progress.
From Magic to FXS, there are more and more cases of project tokens upgrading to Gas Tokens
Recently, the upgrade of dYdX’s token to Gas Token is just one example among many similar initiatives. In fact, this trend is spreading in the blockchain field, with more and more projects adopting similar strategies. These projects, by transforming their tokens into Gas Tokens, not only improve their own operational efficiency, but also enhance their position in the increasingly competitive blockchain market. Below, we will explore the specific situations of these projects and understand how they apply this strategy.
Magic: A decentralized NFT ecosystem based on Arbitrum
The developments of TreasureDAO are worth noting. As a decentralized NFT ecosystem based on Arbitrum, its new move is to introduce Magic token as the Gas Token for its new gaming public chain. This decision directly propelled the rapid rise of Magic token, with an increase of over 30% in one week.
MAGIC asset price trend
With this news, according to OKX market data, MAGIC surged to 0.8562 USDT in the short term, now trading at 0.8439 USDT, with a 24-hour increase of 23.11%.
Hooked Protocol: The new HOOK2.0 proposal attracting attention across the network
The HOOK2.0 proposal from Hooked Protocol reveals its keen insights into market trends.
HOOK asset price trend
In the proposal, HOOK is nominated as the Gas Token in the appchain ecosystem, which not only enhances its functionality, but also signifies a strategic upgrade within its on-chain ecosystem.
APE: The L2 network built by co-founder of Optimism
APE, driven by Optimism co-founder Ben Jones, is considering developing its own L2 network, ApeChain, on Optimism Superchain, and using APE or a new AC token as the Gas Token. This strategy adjustment not only demonstrates APE’s response to market trends, but also reveals its ambitions in platform governance and revenue flow innovation.
IOTA: The whitepaper for version 2.0 of its product was recently released
The IOTA 2.0 incentive and token economics whitepaper has recently been released. According to the whitepaper, the Mana proposal for IOTA 2.0 serves as a Gas Token, which is a significant innovation in the traditional blockchain economic model. This strategy aims to decentralize the validation process while maintaining the stability of token supply, showcasing a deep understanding of blockchain economics.
FXS: Shaping up to be a universal chain platform where various applications can be deployed
On November 2nd, Sam Kazemian, the founder of Frax Finance, announced on the official Telegram channel that Fraxchain will serve as a universal Rollup platform, rather than being limited to Frax Finance’s proprietary chain. This means that various applications can be deployed on Fraxchain. The key point is that FXS will act as the Gas token for Fraxchain, participating in the revenue distribution of the network aggregator and being used to regulate the decentralized mechanism of the aggregator in future updates.
Frax Finance’s move to position FXS as the Gas token for Fraxchain reflects its strategic layout in the blockchain network economy. This not only strengthens the position of FXS within the network but also provides new avenues for its user community to participate in network revenue.
The trend of project native tokens transforming into Gas Tokens is irreversible, and the Web3 world expects more positive changes
Overall, these cases demonstrate how blockchain projects optimize their economic models, improve efficiency, and gain a competitive edge in the market by upgrading their tokens to Gas Tokens.
As this trend evolves, it is expected that more projects will join this trend, collectively driving the economic application and innovation of blockchain technology.
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