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Version: Mainnet

Monetary Policy

Sponsorships​

Dymension utilizes an onchain DAO (i.e. incentives manager) to distribute DYM and stimulate growth. Users who stake their DYM with active validators receive Sponsorship voting rights based on the amount of DYM staked. Users then allocate their Sponsorship weights to the RollApps or liquidity pools they want to sponsor. The Dymension protocol then streams DYM according to the total cumulative Sponsorship weights.

Users may choose which RollApps or liquidity pools they want to sponsor based on any interest. For example, RollApps may incentivize users to sponsor them or their token liquidity pools.

RollApps​

Users may sponsor RollApps, by which DYM incentives are streamed to the RollApp owner account. This transferrable address is initially set as the RollApp creator.This can be utilized as a funding mechanism for RollApp teams, amongst other things.

Liquidity pools​

Users may sponsor token liquidity pools on Dymension. These incentives are streamed to the liquidity pool gauges and distributed to liquidity providers that have bonded their liquidity pool shares.