According to the dYdX Foundation, the DYDX token has undergone a fundamental architectural shift, which is critical for traders to understand. Originally an Ethereum-based governance token for the dYdX v3 protocol, the DYDX token migrated to its own sovereign Layer 1 blockchain, the dYdX Chain, following a governance vote in 2023. The source states that this new chain is built with the Cosmos SDK and secured by a decentralized validator set, transforming DYDX from an ERC-20 token into the native asset of a dedicated blockchain. This change directly impacts the token's utility, staking mechanisms, and long-term valuation proposition.