# dYdX Chain Number of validators Methodology

## 1. Overview

Number of validators measures the number of active nodes that produce blocks and secure dYdX Chain. This metric serves as a key indicator of the network's decentralization, resilience, and overall security. Only validators that successfully propose blocks within a given time period are included in the count.

## 2. Data sources

- **Blockchain events**: Proposer addresses extracted from block headers on dYdX Chain

## 3. Step-by-step calculation

### Component A: Block proposer extraction

- **Purpose**: To identify the specific validator responsible for each block.
- **Logic**: Proposer addresses are extracted from the metadata of every block recorded on dYdX Chain. Each `proposer_address` is mapped to its corresponding block height and timestamp.

### Component B: Daily unique validator aggregation

- **Purpose**: To calculate the total number of unique active validators per day.
- **Logic**: Proposer addresses are aggregated by UTC day. A distinct count of these addresses is performed for each 24-hour period. This ensures that a validator is counted only once per day, regardless of the number of blocks proposed by that specific node.

### Component C: Metric finalization and normalization

- **Purpose**: To ensure data continuity and consistency across the time series.
- **Logic**: The daily counts are cast to a standardized numeric format. A zero-filling strategy is applied to any dates where block data is missing or unavailable. The final values are then filtered to align with data freshness and chain availability parameters. When viewed at granularities higher than a day, the daily values are averaged to represent the typical number of active nodes for that period.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Number of active validators securing the network.

Number of validators

Blockchains (L1)

Market makers offer trades through order book & make money on bid-ask spreads (supply-side fees).

dYdX is a non-custodial trading and derivatives protocol initially built on Ethereum and later expanded to their own blcokchain built on top of the Cosmos SDK. dYdX was founded by Antonio Juliano and launched in 2017.

DYDX tokenholders own and govern the protocol. dYdX Trading Inc. currently takes all of the total trading fees paid by traders (revenue). dYdX’s investors include a16z, Polychain, The Spartan Group, etc.

dYdX Chain

Number of validators

Number of validators

Chain breakdown