Introducing DYM Sponsorships: A New Feature for Dymension Network Users

3 min readJun 12, 2024


Introducing DYM Sponsorships: A New Feature for Dymension Network Users

by avalon ∞ posthuman June 12, 2024

What Are DYM Sponsorships?

DYM Sponsorships use a voting power system of $DYM stakers to distribute incentives across the ecosystem. This enables $DYM stakers and RollApp teams to benefit from a more dynamic and adaptable system.

How Does It Work?

  • Base Incentive Stream:Dymocracy:
    This governance system sets a base incentive stream, for example, 1k DYM per day, distributed between liquidity providers and RollApp Sequencers.
  • Staker Control:
    As a DYM staker, you can change your sponsorship weights at any time, influencing where and how much DYM is allocated based on your preferences and strategic decisions.
  • Opportunities for Ecosystem Participants:
    RollApp teams, DA networks, and other ecosystem participants can present their proposals to DYM stakers to gain support for incentive distribution.

Key Benefits

  • Empowerment:
    You decide how to allocate resources, aligning your staking efforts with your vision for network growth.
  • Flexibility:
    Change weights at any time to respond to changing circumstances and opportunities.
  • Value Creation:
    Designed to provide direct value to DYM stakers and create permissionless onchain opportunities.

Practical Application

Imagine you stake 10,000 $DYM. With DYM Sponsorships, you can allocate weights for various initiatives:

  • 50% to liquidity pools, ensuring their reliability.
  • 30% to a RollApp team developing a cutting-edge application.
  • 20% to a new DA network offering unique value propositions.

You can dynamically adjust these weights as new opportunities or needs arise, making your staking efforts more strategic and effective.

Long-Term Vision and Growth Potential

Introducing DYM Sponsorships can lead to significant growth and development across the Dymension ecosystem.
Here are some potential long-term effects:

  • Increased Ecosystem Participation:
    Empowering stakers to direct incentives can boost activity in the ecosystem. RollApp teams and other participants will actively engage with stakers to gain their support, leading to more innovation and collaboration.
  • Enhanced Network Security and Stability:
    With more stakers actively involved in governance and incentive distribution, the network becomes more secure and stable. Increased staker engagement can lead to more vigilant monitoring and quicker responses to potential threats or issues.
  • $DYM Value Growth:
    As more projects and teams seek $DYM incentives, the demand for $DYM tokens may increase, potentially driving up their value. This creates a positive feedback loop where value growth attracts more participants, further enhancing network growth.
  • Diversified and Sustainable Ecosystem:
    The ability to dynamically regulate incentive streams ensures that resources are allocated to the most promising and impactful projects. This fosters a diversified and sustainable ecosystem capable of adapting to changing market conditions and technological advancements.
  • Incentive-Driven Innovation:
    Allowing RollApp teams and other participants to compete for incentives can stimulate innovation within the network. Teams will be motivated to develop high-quality and impactful projects to attract staker support.

Upcoming 3D Upgrade

DYM Sponsorships will be implemented as part of the upcoming 3D upgrade. This upgrade represents a significant step forward, greatly enhancing network functionality and expanding each staker’s ability to influence its future.