Paradex has outlined new details around its upcoming $DIME Token Generation Event (TGE), confirming a late-February or early-March target window and expanding its airdrop allocation for traders who participated in XP Season 2. The exchange, which operates as a privacy-first, zero-fee on-chain perpetuals platform, announced this week that XP Season 2 has officially concluded, marking a key step toward the launch of its native token and the next phase of its ecosystem development.
According to Paradex, 25% of $DIME’s fully diluted supply will be distributed to all XP holders at TGE, with tokens fully unlocked at launch—meaning recipients will have immediate access to their allocations without vesting periods or lock-up restrictions. The platform also increased the allocation dedicated specifically to Season 2 participants, raising their share to 20% of total supply, up from the originally planned 15%. This adjustment reflects the platform’s recognition of the substantial trading activity and engagement generated during the season.
An additional 5% remains reserved for Pre-Season and Season 1 XP holders, bringing the total XP-linked distribution to a quarter of the token’s supply. This substantial allocation to active participants signals Paradex’s commitment to rewarding early adopters and consistent platform users rather than prioritizing venture capital or team allocations at launch.
Season 2 Drives Significant Growth
Paradex framed XP Season 2 as one of its most significant growth periods to date, citing sharp increases across major platform metrics that demonstrate accelerating adoption. Average daily trading volume reportedly climbed from $68 million to $2.1 billion—a roughly 30x increase—while Open Interest rose from $28 million to $679 million, indicating substantially deeper market participation and larger position sizes. Total Value Locked increased from roughly $25 million to $218 million, and the platform’s user base expanded from just over 4,000 to more than 70,000 traders.
These metrics suggest that Paradex has successfully attracted both retail and professional traders seeking zero-fee perpetual futures trading with enhanced privacy features. The platform’s growth trajectory puts it in competition with established centralized exchanges and other on-chain derivatives platforms that charge trading fees.
In the final week of the season alone (January 23–29), Paradex distributed 6 million XP to active users, with additional rewards issued through referral and affiliate programs. Traders surpassing 25,000 XP during the week also received exclusive “BadgerBox” drops, creating additional incentives for high-volume participants. A final waitlist snapshot is scheduled for January 31 at 00:00 UTC, the platform said, establishing the definitive list of eligible participants for the airdrop.
Token Launch Expected After Chinese New Year
Paradex confirmed that the $DIME TGE will take place after the Chinese New Year holiday, targeting either the last week of February or the first week of March. The timing accounts for reduced market activity during the Lunar New Year period, when many Asian market participants are typically less active. The official launch date is expected to be announced by the Paradex Foundation in the coming weeks.
At launch, $DIME will initially be listed on Paradex spot markets, serving as the first venue for trading and allowing the platform to establish initial price discovery in a controlled environment before potential listings on external exchanges.
XP Season 3 Begins February 1
Looking ahead, Paradex also announced that XP Season 3 will begin on February 1, shifting focus toward new product verticals including spot trading, Real-World Asset perpetuals, and options. This expansion beyond traditional crypto perpetuals signals Paradex’s ambition to become a comprehensive trading platform rather than remaining solely focused on derivatives.
While XP accumulation will begin immediately on February 1, the first weekly distribution will occur only after the TGE, allowing the team to prioritize execution of the token launch without splitting resources between token distribution and ongoing XP reward calculations.
With a substantial portion of supply dedicated to active traders and the expansion into new product categories, Paradex appears to be positioning $DIME as a long-term incentive and alignment mechanism rather than a short-term promotional event. The focus on rewarding actual platform usage over speculative participation may differentiate $DIME from other exchange tokens that have struggled to maintain utility beyond initial hype cycles.
