How to Claim the Dymension Airdrop

One of the main issues with modular blockchains is interoperability because most modular chains use proprietary systems that make it hard to communicate with other chains. While these modular chains are extremely useful for developers, Dymension saw a way to create a chain that is both interoperable and modular. This is done through new technologies called RollApps and the Inter-Blockchain Communication (IBC) protocol.

What is Dymension (DYM)?

The idea of a modular blockchain is to break a complex system into smaller parts so that you can isolate issues, test new features and build an overall more efficient network. While this has been successful with a handful of other projects (Celestia), these chains often cannot communicate with other networks and therefore have limited use cases.

Dymension hopes to solve this issue through two main features: RollApps and the Inter-Blockchain Communication (IBC) protocol. 

RollApps are a combination of two terms in crypto, which are rollups and decentralized applications (dApps). Rollups are a system in which a layer 2 solution takes many transactions from the layer 1 blockchain and processes and verifies them off-chain. The layer 2 converts the transactions into one piece of data, which is then sent back to the main blockchain and added to the ledger.

dApps is a broader term that refers to software that uses blockchain technology to run. Some examples are Polygon, Uniswap, Axie Infinity and EigenLayer. 

These two combine to create RollApps, which allow users to create new projects that operate on the Dymensions network. These projects can range from DeFi to games. 

Additionally, the IBC allows users to communicate and interact with other chains through the Cosmos network. Cosmos is a crypto project designed for interoperability, hoping to create an internet of blockchains. Add all these things together, and a DYM airdrop could be on the horizon.

Brief History of Dymension (DYM)

Dymension was founded in 2022 by Yishay Harel, an Israeli entrepreneur. The team has grown since then to support around ten employees. Additionally, it recently closed a private token funding round, which allowed it to raise $6.7 million. The funding was led by Big Brain Holdings and Stratos, among others. The funding came in the form of a simple agreement for future tokens (SAFT). 

Dymension will launch its testnet on February 15 with the mainnet scheduled for release in Q3 2024. Does this mean that another DYM airdrop could be coming?

Dymension (DYM) Token Airdrop Eligibility

The DYM token was released on Feb. 6, 2024, to a variety of wallets. In total, the genesis rolldrop was available for claims by over 1 million wallets. To receive the airdrop, users have to have participated in a handful of projects, such as Solana, Ethereum, Celestia, Arbitrum, Base, Optimism and a few others, including holders of various NFT projects. Dymension looked at data from before Dec. 19, 2023, to determine eligibility. 

How to Claim the Dymension (DYM) Token Airdrop

Out of the 1 million+ wallets that were eligible, only 528,523 wallets made a claim for the airdrop. The claims were made in early January 2024 and closed on January 21. Unfortunately, if you did not claim the DYM airdrop in January, you are unable to get your tokens. 

How to Buy Dymension (DYM)

If you did not receive the airdrop but are still interested in a potential DYM airdrop in the future, here’s a step-by-step guide to buying it.

Step 1: Open an Online Account

Since DYM is such a new token, it is not available on all trading platforms. However, it is available on Kraken, which is well-known for its security, low fees and extensive crypto offerings. 

To get started on Kraken, create an online account and verify it according to know your customer (KYC) regulations. You can then fund it by linking a bank account. 

Step 2: Buy a Wallet (Optional) 

While you can store DYM on a crypto trading platform, a wallet is potentially safer and allows for more discretion over your tokens. 

Best Hardware Wallet: Ledger

Hardware wallets are physical devices that store the private keys needed to send crypto. This process is often regarded as the safest way to store cryptocurrencies after a purchase or something like a DYM airdrop.

Ledger is a brand of hardware wallet that is compatible with the Dymension through MetaMask. Ledger offers a Nano S Plus and Nano X model. The Nano S Plus is beginner-friendly, while the Nano X is more advanced, offering more storage and Bluetooth connectivity.

Best Software Wallet: MetaMask

MetaMask is a software wallet that also supports the Dymension Network. A software wallet is an application that holds crypto separate from a centralized exchange. It also uses private keys to mitigate the risk of hacking. 

Creating a MetaMask account is simple, only requiring an email. Once you set up your account, you will be assigned a wallet address where you can send and receive crypto.

Step 3: Make Your Purchase

To purchase DYM, navigate to the DYM page, which you can find through the search feature or by using a search engine. Once you're there, hit Trade and select the amount of DYM to purchase. You can then execute the trade. Your DYM should appear in your portfolio, and you should get a trade confirmation email. 

Bonus section: Keep an eye out for new projects on the Dymension platform. These can bring in new users and increase the price of the token.

Trade, Sell or Convert your DYM

To sell after a DYM airdrop or purchase, navigate back to your holding from your portfolio. From there, you can hit the Sell button. Select the amount of DYM you would like to trade and execute the transaction. Your DYM will be converted into fiat (USD). You can then send this currency back to your bank account.

To convert your DYM, the process is similar. Find your position and select Convert. You can select the currency you want to convert your DYM to. The full list of currencies you can convert to can be found on CoinMarketCap. You can also sell your DYM and use those funds to buy a different currency, though this will likely involve more fees.

Current Crypto Prices

After a sell-off following the approval of the spot Bitcoin ETFs, the crypto market has begun to slowly climb back. While prices are still well below the highs of early January 2024, there does seem to be some upward momentum. 

It will be important to watch for key upcoming events, such as the Bitcoin halving and potential spot Ethereum ETFs. 

Is Dymension (DYM) a Good Investment?

Although Dymension is not the only project in the modular blockchain sector, its focus on interoperability could serve as a strong point of differentiation. Additionally, the DYM token has performed fairly well following the airdrop. However, many projects have performed well in the beginning and then slowly fallen off. Dymension will have to continue innovating and evolving to avoid this scenario.