In this four minute reading article, you will learn about:
- DeFiChain’s goals for 2021
- The metrics applied to achieve these goals
Goals for Q1 of 2021
The introduction of atomic swaps and the reduction of the masternode collateral are the two biggest and most prominent projects towards a more decentralized ecosystem in Q1, 2021. In addition, two more liquidity pool pairs as well as an ERC20 version of the DFI token will be introduced this quarter. DeFiChain will continue to develop these initiatives to further drive decentralization throughout Q2 and beyond. Several more lighthouse projects are in the pipeline, inter alia, aiming to bring stocks, currency and commodity trading to DeFiChain, and making it easier to build on top of the DeFiChain blockchain.
For more info on Q1 agendas, please refer to the following link: Insert link to Q1 article
Goals for Q2 of 2021
Besides ongoing efforts being applied into updating and improving the DeFiChain app, the focus in Q2 will be on three key initiatives.
Stock, Currency and Commodity Trading
Decentralized futures are the backbone of any stock, currency and commodity transaction on the DeFiChain blockchain. A futures contract is simply an agreement between two parties to sell or buy an asset at a fixed price on a predetermined ‘future’ date. When the contract is due, both parties have to fulfill their obligations regardless of the price at contract maturity.
In the crypto space, it is also possible that a futures contract does not have a predetermined expiration date. These types of futures contracts are called perpetual futures contracts (or sometimes just perpetual contracts(. DeFiChain will support both types of future contracts — fixed and perpetual futures contracts. This would then, in theory, make it possible to go ‘long’ on Tesla or ‘short’ on the USD/DFI currency pair, either with a preset expiration date or an open expiration date (perpetual future contracts).
Whenever someone buys a Tesla stock or sells gold via the DeFiChain app, the decentralized futures contracts are working in the background to ensure the order is processed correctly. These futures contracts are funded and backed by either decentralized BTC or DFI. However, since decentralized BTCs are also backed by DFI, this should then translate into an increase in demand and intensified buying pressure for DFI, ultimately leading to a rise in DeFiChain’s TVL.
DeFiChain initially launched as a deflationary utility token with a 200 DFI block reward, of which currently 10% goes to the community fund (after DFIP voting). The foundation, though, pledges to guarantee this 200 DFI block reward for at least the first 1,050,000 blocks since the first genesis block has been mined. Thenceforth, block rewards will be adjusted through governance vote — this event will occur for the first time in Q2 2021 and is expected to cut the block reward down to 150 DFI per block.
Programs and dApps currently running on DeFiChain, require to run a node, together with an embedded wallet as part of the node. A JS Library changes that by taking the wallet out of the node to allow the node to run as a public node. Everything else — such as a private key — is held in the app or browser plug-in. This is similar to Metamask, where it is possible to just sign the transaction and have it broadcasted to a publicly hosted node without them holding the private keys.
This is all done in a trustless manner, saving the community from having to sync the blockchain on their own desktop or app, and even resulting in significant time savings. The JS Library is also a prerequisite for mobile apps and web apps to be introduced at a later stage in 2021.
Goals for Q3 and Q4 of 2021
The focus in Q3 will be on developing a mobile app to allow anyone to interact with DeFiChain in a trustless way, on their smartphones. There will also be more tokenizations coming, especially after the ones in Q2 2020 turned out to be successful. Ongoing UX improvements are on the agenda as well. However, the two most important undertakings in the last two quarters will be dealing with the mobile app and a revised organization feature.
As mentioned above, the JS Library is a prerequisite for the mobile app. Using the mobile app, it is then possible to interact with DeFiChain in a trustless way, directly via the app on your mobile phone.
There will also be continued effort put into reducing the role of the foundation on DeFiChain. One of those initiatives aims to allow anyone to create an organization on DeFiChain. This goes hand-in-hand with the possibility of creating a DeFi Asset Token (DAT). DATs on DeFiChain are tokens and crypto assets external to DeFiChain, such as DBTC, which is backed by real BTC, or DETH, which is backed by real ETH. New DATs are introduced to the system through masternode voting.
This should change by allowing anyone — not just the foundation — to mark a certain token as an asset token. As a result, anyone can then create a token and mark the token as an official token by their organization. On top of that, the organization is then also able to appoint pricing oracles, which are essentially smart contracts on DeFiChain, allowing multiple trusted and appointed parties to submit periodic price feeds of DATs and DFI.
All these numerous organizational goals can be broken down into the following three quantifiable goals, which will ultimately guide all actions set by DeFiChain’s stakeholders and be reached by the end of 2021:
- A TVL in access of US$2b, which is approximately 10% of the TVL of ETH and twentyfold of the current TVL.
- More than 20k Daily Active Addresses (DAA), which is ten times as many DAA as at the moment.
- A market capitalization (MC) of at least US$20b, which equals to a tenfold increase of the current MC.
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