A Closer Look at the December DFIP & CFP Voting Round

Dec 4, 2024

Six DeFiChain Improvement Proposal (DFIPs) and five Community Fund Proposals (CFPs) are up for vote in the latest governance voting round.

DFIPs:

CFP:

DFIPs

DFIP 1: Step 1 Towards a Marketing SIG

This foundational proposal aims to establish a Marketing Special Interest Group (SIG), marking the first organized initiative to drive DeFiChain’s visibility and growth. The SIG will consist of three community members—Defichain_Puschi, Axel, and Hulix—who bring extensive expertise in marketing and strategic communications.

Mission:

Expand DeFiChain’s reach in the blockchain ecosystem.
Foster a strong, recognizable brand presence.
Increase user engagement and adoption through tailored campaigns.

Responsibilities:

Campaign Execution: Launch marketing campaigns focused on key DeFiChain products like RWAs, the DEX, and the EVM layer.
Community Outreach: Collaborate with influencers and create educational resources.
Performance Tracking: Deliver quarterly performance reports with detailed KPIs and campaign outcomes.

Governance:

Transparent decision-making with community input on major expenditures.
Additional funding requests to be proposed as Community Fund Proposals (CFPs) if needed.

Impact: By creating a dedicated marketing team, DeFiChain enhances its competitive edge, fosters a vibrant community, and supports ecosystem-wide growth.

DFIP 2: Funds Reallocation to Marketing SIG

To ensure the Marketing SIG has the resources required for effective campaigns, this proposal reallocates unused funds from the Accelerator team to the SIG. Interim custodians will manage the funds until the SIG is formally established.

Details:

Fund Recovery: Accelerator team has confirmed repayment of previously allocated funds.
Usage: Resources will support marketing initiatives while maintaining transparency through community discussions.

Additional Measures:

The SIG may explore staking strategies to grow the fund while preserving the community fund’s integrity.

Outcome: This strategic fund reallocation minimizes waste and ensures that community funds are directed toward impactful initiatives.

DFIP 3: Removal of Community Managers and Moderators Affiliated with For-Profit Organizations

This proposal seeks to decentralize the management of official DeFiChain communication channels by removing moderators affiliated with for-profit entities like Cake Group Pte Ltd and mydefichain UG. It emphasizes independence in governance and unbiased community engagement.

Proposed Actions:

Transfer ownership of groups to independent community members.
Change official DeFiChain links to newly managed groups if the transition isn’t achieved.

Benefits:

Ensures unbiased moderation, free from commercial interests.
Fosters open and inclusive communication spaces that reflect the community’s diverse perspectives.

Impact: This proposal reinforces DeFiChain’s decentralization ethos, building trust and transparency across its ecosystem.

DFIP 4: Adjustment of Minimum Transaction Fees Based on DFI Price

To address the disproportionate impact of DFI price fluctuations on transaction fees, this proposal introduces a dynamic fee model. A minimum fee of $0.002 will be adjusted regularly to align with DFI’s USD price, ensuring fair and sustainable operations.

Key Features:

Base Fee Implementation: Applies across native DeFiChain and DMC transactions.
Burn Mechanism on DMC: Fees collected on DMC will be burned, contributing to the network’s deflationary goals.

Benefits:

Protects masternode operator incentives by maintaining a stable fee structure.
Prevents low-value spam transactions, sustaining network efficiency.

Next Steps: Regular community reviews will ensure the fee structure evolves with the ecosystem’s needs.

DFIP 5: Deprecate the DFI-XCHF and DFI-MATIC Liquidity Pools

This proposal seeks to deprecate the underutilized DFI-XCHF and DFI-MATIC liquidity pools, freeing up resources for more productive initiatives.

Rationale:

XCHF Deprecation: The token is no longer supported, leaving liquidity providers with stranded assets.
MATIC Pool: Low activity and minimal utility have made this pool unviable.

Proposed Actions:

Notify liquidity providers (LPs) of deprecation.
Facilitate withdrawals and redistribute liquidity.
Disable pool functionality after a 60-day transition period.

Impact: This move reduces risks associated with dead assets, enhances resource allocation, and sets a precedent for future ecosystem optimizations.

DFIP 6: Force the Peg Finally

This proposal addresses the persistent issue of DUSD de-pegging by introducing a mechanism to enforce the peg through dynamic DEX fees and interest rates. By employing these measures, the proposal aims to stabilize the price of DUSD above $0.95 and ensure long-term stability.

CFPs

CFP 1: Redirecting Rewards from All dCrypto Pools to the BuyBurningBot (BBB) for dUSD Peg Stabilization

To restore stability to the dUSD peg, this proposal redirects rewards from dCrypto pools to the BuyBurningBot (BBB), which will use the funds to purchase and burn dUSD. After stabilization, the rewards will be reallocated to the dUSD-DFI liquidity pool.

Proposed Actions:

Redirect rewards immediately for peg stabilization.
Reallocate to support liquidity once the peg stabilizes near $1.

Benefits:

Supports a robust, reliable dUSD as a reserve asset.
Encourages ecosystem stability and user confidence.

CFP 2: MyDeFiChain Team Effort 2025

A symbolic request for 21,600 DUSD and 1 DFI ensures MyDeFiChain’s continued operation. Despite minimal funding, this team has consistently provided critical infrastructure support.

Key Contributions:

Reliable infrastructure management for masternode operators and developers.
Commitment to DUSD peg restoration and ecosystem growth.

Why It Matters: Ensures operational stability at minimal cost, reinforcing community trust and reliability.

CFP 3: MyDeFiChain Infrastructure 2025

A request for 2,625,000 DFI (~$42,000 USD) ensures the maintenance of essential services like Ocean Infra, RPC endpoints, and snapshot services.

Key Highlights:

Supports growing network demand, with RPC usage surging tenfold since mid-2024.
Cuts unnecessary expenses, saving $750 per month through infrastructure optimizations.

Impact: Sustains critical infrastructure while improving cost efficiency.

CFP 4: Operational and Infrastructure Costs for Cloud Services

Seeking 6,000,000 DFI (~$90,000 USD), this proposal supports the operation of Blockscout, Defiscan, and other core services for 2025.

Key Features:

Covers operational and legal expenses, ensuring uninterrupted service.
Advances decentralization by removing reliance on single entities.

Why It’s Crucial: Maintains network integrity and ensures seamless experiences for users and developers.

CFP 5: Ensuring DFI Market Making Continuity: Funding for Operations on KuCoin

This proposal requests 3,500,000 DFI to sustain market-making activities on KuCoin, a key trading platform for DFI.

Benefits:

Maintains liquidity and reduces price volatility.
Strengthens DeFiChain’s market presence and trading efficiency.

Outcome: Supports a stable and accessible trading environment, boosting user confidence and ecosystem adoption.

Final Words

This governance cycle showcases a balanced mix of proposals aimed at growth, decentralization, and sustainability.

As the ecosystem matures, these initiatives highlight the community’s collective vision for a stronger, more resilient DeFiChain.

Further details and guidelines for submitting a Community Fund Proposal to support their own initiatives are available at github.com/DeFiCh/dfips#.

DeFiChain

Decentralized finance enabled on Bitcoin. A blockchain dedicated to fast, intelligent and transparent financial services, accessible by everyone.

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