A Closer Look at the March DFIP & CFP Voting Round

Feb 6, 2024

Three DeFiChain Improvement Proposal (DFIPs) (one of which is a special DFIP) and two Community Fund Proposals (CFPs) are up for vote in the latest governance voting round.


  1. Chainlink on DeFiChain (DFIP) - integrate Chainlink’s $LINK on DeFiChain and create a dLINK-DFI liquidity pool.
  2. Time-limited redirection of block rewards to the XCHF-DFI pool to enhance the usability of XCHF (DFIP) - incentivize the XCHF-DFI pool with block rewards for a limited time.
  3. Community Fund Diversification (special DFIP) - diversification of the Community Fund to help $DUSD to repeg to $1.


  1. A Proposal for DeFiChain Labs' Independent Future - fund DeFiChain Labs directly via the community fund to enable self-sustained, dedicated development into the future.
  2. Decentralized Bridge for access to the DeFiMetaChain - develop and integrate a decentralized bridge alongside with CrowdSwap.

The voting round for the proposals (except for the special DFIP) will end at Block Height 3,770,000 (roughly around 2nd March 2024).

DFIP: Add Chainlink to DeFiChain

This DFIP outlines integrating Chainlink’s LINK token as a native digital asset on DeFiChain to unlock trading on the DeFiChain DEX.

If approved by Masternodes, LINK could be bridged from Ethereum to DeFiChain using the Quantum Bridge infrastructure. 

Post-bridging, a new LINK-DFI liquidity pool would be created on the DEX for direct LINK/DFI trading. This pool would have the standard trading fee structure - 0.2% to liquidity providers on each swap. No additional inflationary rewards are proposed at this time.

Onboarding a popular digital asset like LINK would bring fresh liquidity and assets onto DeFiChain for investors. Additionally, it grants LINK holders access to DeFiChain’s surging decentralized exchange - adding indirect utility value to the LINK token itself.

Moreover, integrating one of crypto’s most widely used tokens may draw more from Chainlink’s substantial following to engage with DeFiChain. The move displays the flexibility of DeFiChain in extending native support for external token projects.

DFIP: Redirection of Block Rewards to the xCHF-DFI Pool

This DFIP suggests temporarily redirecting a portion of block rewards to the xCHF-DFI liquidity pool for 120 days. It aims to incentivize greater xCHF liquidity on the DEX to unlock more usability and volume.

Specifically, the proposal calls for diverting 3% of current BTC-DFI inflationary rewards - around 2,250 DFI daily based on current rates - to the xCHF pairing. This would minimize slippage for larger trades in the traditionally low-liquidity xCHF pool.

It's also shown that existing DEX pools can thrive on swap fees alone in the long term without block rewards. Thus, a time-limited boost through redirected inflation offers a logical way to jumpstart xCHF liquidity without ongoing subsidy.

If the proposal succeeds in attracting enough votes, the additional volume would also benefit the wider DeFiChain community. More trades drive higher visibility for DeFiChain on ranking platforms while granting convenient access for Swiss natives wishing to swap their national currency against DFI without intermediaries.

Since Swiss Francs are a stable fiat currency backed by sound economics, increasing its on-chain representation also creates further diversity for DeFi investors as well.

Special DFIP: Community Fund Diversification

This special  DFIP proposes diversifying the DeFiChain community fund to better equip the ecosystem for sustainable expansion.

The short-term goal focuses on restoring the $DUSD peg by directing capital to buy discounted $DUSD when its price drops below $0.99. This applies buying pressure to stabilize the peg.

The longer-term objective is to introduce reserve asset diversification into the central fund. Currently, block reward fluctuations and market volatility can impact project funding if applicants solely hold DFI.

By allowing reserves to be held in stablecoins like $DUSD as well, applicants can shield themselves from crypto volatility.

To enable this, the DFIP looks for the community fund to accumulate $DUSD up to a 30% maximum allocation whenever its share drops due to distribution drifts. Methodical rebalancing would occur automatically through small DFI conversions.

In this way, the proposal tackles both short-term stability needs and introduces long-term sustainability mechanisms leveraging the fund's scale. 

CFP: A Symbolic $1 For DeFiChain Labs' Independent Future

As DeFiChain matures, so too must the structures supporting its future growth. DeFiChain Labs has proposed transitioning to an independent organization sustained directly by funding from the blockchain through this CFP.

This decentralized funding model aims to empower DeFiChain Labs to maintain a specialized focus on engineering, partnerships, integrations, and driving adoption.

Most importantly, independence would structurally ensure that DeFiChain can respond to the future needs of its user community, not the agenda of any singular company or organization.

Establishing DeFiChain Labs as a decentralized entity furthers the network's commitment to distributed governance and control. It reinforces that the future of DeFiChain rests not in the hands of a few but with a growing community united by a common purpose and vision.

CFP: Decentralized Bridge to access DeFiChain’s MetaChain Layer

This CFP plans collaboration between DeFiChain and crypto bridge experts CrowdSwap to develop core infrastructure, expanding MetaChain's horizons.

The proposal focuses on integrating a decentralized, security-focused bridge as a gateway to enable seamless capital flows into MetaChain from external chains. This modular gateway unlocks MetaChain's ability to tap into the full power of multi-chain DeFi.

After careful vetting, the BlackSwan team selected CrowdSwap as an ideal partner for the bridge based on their proven expertise in successfully deploying decentralized bridges since 2021. Their experience building secure cross-chain links makes them perfectly suited for this integration.

While the bridge development and maintenance require an upfront investment, over time, the bridge will become a revenue generator for the community fund.

Final Words

The five proposals covered showcase the expanding vision of the DeFiChain community - unified by a drive toward meaningful adoption and ecosystem-level growth.

While the core developers put effort into enhancing protocol capabilities and decentralized finance features, contributions from the community are what will lead DeFiChain to the forefront of mainstream adoption.

Whether it is infrastructure reliability, developer growth, or exchange exposure - it ultimately comes down to a shared, inclusive outlook that values collective contributions regardless of background or credentials.

For those interested in submitting a Community Fund Proposal to support their own initiatives, further details and guidelines are available at github.com/DeFiCh/dfips#.


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