The Future of DeFiChain: Decentralization through SIGs, DeFiChain Labs, and Community Engagement
As DeFiChain continues its journey towards further decentralization, the latest developments have sparked numerous questions from the community regarding cost reductions, team structure, and future plans.
In this blog, we’ll address these concerns, providing a clearer picture of DeFiChain’s evolving strategy, and how the community will play a crucial role in its future.
DeFiChain Lab’s Operational Costs
A significant point of discussion has been the reduction of DeFiChain’s operating costs from approximately $2.4 million annually in 2024 to a projected $160,000 in 2025.
However, these figures reflect different scopes and objectives. The Q1 2024 Community Fund Proposal (CFP) covered a wider range of operational expenses, including engineering and infrastructure, whereas the current Q3 2024 CFP, which is now up for a vote, focuses more narrowly on core administrative and operational tasks such as the website, social media, community management, marketing, and business development as outlined in the CFP.
Nevertheless, DeFiChain Labs has taken concrete steps to reduce costs, including a significant reduction in headcount and optimization of server and operational expenses.
By streamlining resources and refocusing efforts, the team aims to maintain essential services while transitioning towards a more sustainable and community-driven model as outlined in the Q3 2024 CFP.
Changes in Team Responsibilities
DeFiChain Labs operates independently, with a lean team of just a handful of people that are responsible for tasks such as design, content creation, social media management, and business development, and is not formally affiliated with Bake, Birthday Research, or any other organization.
Bake, on the other hand, has indicated that it will soon cease providing developer resources to DeFiChain, requiring the community and other stakeholders to take on responsibilities previously managed by the engineering team.
Starting at the end of the year, development and other key tasks will be managed within Special Interest Groups (SIGs), and it will be up to the members to decide how they organize their work. Whether tasks are handled voluntarily, outsourced, or funded through new CFPs will be determined by the SIGs themselves and the broader community.
The exact number of full-time equivalents (FTEs) and compensation details for developers will depend on the SIGs’ decisions. As of now, marketing, content creation, social media management, and business development remain under the purview of DeFiChain Labs, which will continue these activities if the ongoing CFP is approved.
Team Transparency and Communication
DeFiChain Labs has made efforts to foster transparency by hosting Tech Talks throughout the year, where lead engineers and key team members engage directly with the community.
These sessions offer a platform for discussion and feedback, although turnout has been lower than expected, suggesting that direct engagement is not a high priority for many community members.
The DeFiChain Labs team is currently also overhauling its communication strategy, which includes establishing SIGs. Once these are fully operational, individual SIG owners will have the discretion to decide whether they want to reveal their identities.
However, DeFiChain Labs is committed to implementing a system that ensures community concerns are heard and addressed, even if team members choose to remain behind the scenes.
Future Roadmap and Focus Areas
The immediate priorities for DeFiChain include the implementation of the upcoming hard fork and ensuring the smooth operation of SIGs. Once these foundational changes are in place, the project’s direction will be guided by community input and the initiatives led by the SIGs. A collaborative roadmap will be developed, with a focus on projects that bring the most value to the DeFiChain ecosystem.
One of the critical areas of focus will be updating the DeFiChain website. Preliminary work has already begun, and DeFiChain Labs will actively engage with the community to gather feedback and leverage synergies. This collaborative effort will aim to ensure the website meets user needs, with concrete steps set to follow the establishment of SIGs and the hard fork implementation.
DeFiChain Labs is also looking to deepen engagement with stakeholders, address broader community needs, and tackle high-priority projects, such as website updates, through a renewed commitment to accountability and transparent communication.
Conclusion
DeFiChain is navigating a transformative period marked by significant changes. As the project moves towards a more decentralized model, the community’s role will be more vital than ever in shaping the future of DeFiChain.
Through the establishment of SIGs, the ongoing commitment of DeFiChain Labs, and the active participation of stakeholders, DeFiChain aims to uphold its principles of decentralization, transparency, and innovation.