Dymension

Dymension is a layer-1 blockchain built on the Cosmos ecosystem, designed to power and interconnect modular blockchains known as RollApps. RollApps are application-specific chains that leverage Dymension's infrastructure to simplify the creation and deployment of decentralised apps without requiring developers to manage the complexities of blockchain infrastructure. The platform provides a modular framework for developers to create their own blockchains quickly, abstracting the technical difficulties of setting up validators or consensus mechanisms.

Dymension’s technology focuses on scaling networks by enabling interoperability between different RollApps through Cosmos' Inter-Blockchain Communication (IBC) protocol. This allows seamless data and asset transfer between different chains, increasing liquidity and connectivity in the broader blockchain ecosystem.

Dymension’s native token, DYM, is primarily used for governance, staking, and securing the network. RollApps deployed on Dymension must bond DYM tokens, which incentivises stakers to secure these app-specific chains. Validators and stakers are rewarded with fees for providing this security, and they also play a role in governance by voting on protocol upgrades.

Additionally, DYM tokens are essential for operating RollApps, as they must be staked to ensure efficient transaction processing. The platform’s decentralised settlement layer facilitates the scaling of application chains, while users and developers alike are incentivised through transaction fees and potential airdrops.