DeFiChain is one of the world's most decentralized blockchain networks, but as with any code written by humans, it needs to continuously improve and adapt to stay at the forefront of technological development. The changes and implementation of code are not carried out arbitrarily, but rather, they follow a sophisticated voting process that is meticulously orchestrated.
As a result, every stakeholder in the DeFiChain ecosystem has the opportunity and right to propose improvements to the code base through a DeFiChain Improvement Proposals (DFIPs) as well as to request funding of projects that benefit the broader DeFiChain community (CFPs). In addition, Masternode holders are entitled to cast their vote on DFIPs and CFPs, making DeFiChain a truly community driven and decentralized project.
The voting round for November is now open
Masternodes, to the consoles! The latest voting round of 2022 will commence on Monday, 14 November 2022 23:59:59 UTC and will end on Monday, 21 November 2022 23:59:59 UTC. Every Masternode holder is encouraged to exercise their right to vote and shape DeFiChain's future.
Eventually, results will be finalized and communicated with the community around 23 November 2022. The CFPs/DFIPs can be accessed through the official GitHub repository. To open a discussion between the author and the community, proposals are usually accompanied by a Reddit post. Do note that CFP/DFIPs are confirmed by absolute majority votes.
The highlights of this voting round
A curated selection of DFIPs and CFPs are presented here to help spur more participation and interest in ongoing discussions on Reddit.
Almost all major blockchains have them, and DeFiChain wants to get one as well – an incubator program to entice top EVM projects to join the DeFiChain ecosystem. In order for DFI to become one of the top 20 cryptocurrencies, it is important to follow the successful strategies of other top blockchain projects. Upon close examination, many of the top blockchains rely on a well-funded incubator program to lure top projects and developers to join their ecosystem.
The Binance Incubator Program, for instance, was able to attract more than 650 projects that collectively contributed to the creation of 100,000 new active addresses and the ones that got shortlisted contributed more than US$50+ billions to the blockchain’s TVL.
A key objective of this program is to generate tangible benefits for the DeFiChain community in synergy with DMC's product roadmap. Besides funding projects on the DMC, the CFP aims to generate publicity through tier 1 publications to kickstart the DMC's success.
In addition, the CFP requires that certain milestones be reached before further funding rounds are unlocked. Therefore, while this CFP seeks funding of 10M DFI, these funds will be distributed in phases to validate the concept and safeguard the community.
This DFIP proposes buying DUSDs using DFI funds from the Community Fund in order to solve the DUSD debagging problem. The lock-up of DUSD will not only help re-peg its value to 1 USD, but will also allow community members to request DUSD in future voting rounds. The inbuilt mechanism would only work if DUSD were sold at a discount compared to the oracle price.
There is currently too much free DUSD in the DeFiChain ecosystem (specifically algorithmically generated DUSD). Excess DUSD is currently reduced via a variety of burn mechanisms - but this takes time. The current pace of change should be accelerated by further initiatives that create incentives for users to remove (temporarily) their DUSD from the market by locking up DUSD and earning rewards.
The goal of this CFP is to lock 30-60 million DUSD to remove excess algo-DUSD from the system. A combination of reduced supply and potentially increased demand supports the DUSD price. Due to the lockup, this reduced supply will remain for a longer period of time, giving the ecosystem time to stabilize.
Full list of proposals
The full list of all CFPs and DFIPs can be found in the infographic below.