Decred is an innovative blockchain-powered ecosystem that seeks to tackle transparency issues associated with existing governance models. The project's primary goal is to create an open and accessible voting system for all token holders.
What is Decred?
Decred is a decentralized ecosystem that prioritizes financial sovereignty. Within the Decred ecosystem, individuals who hold the native DCR tokens have a significant role in shaping the project's direction and design. Decred operates on a hybrid consensus mechanism, combining Proof of Work (PoW) and Proof of Stake (PoS).
The Decred team
Decred embraces open governance, creating a collaborative environment that blurs the lines between users and team members. The project was initiated in 2016 by Company 0, with involvement from developers within the Bitcoin community. Jake Yocom-Piatt, a renowned blockchain expert, played a key role in the founding team.
The current Decred team comprises various individuals contributing to the project's success. Andrew Fang assumes the role of acting CFO, while software developers Amir Massarwa and Tiago Alves Dulce contribute their expertise. Additionally, Samson Ehigiator serves as a Golang Developer.
How does Decred work?
Decred operates on a hybrid Proof of Work (PoW) and Proof of Stake (PoS) model. In this setup, miners solve complex puzzles to maintain network security through PoW, while PoS handles staking and governance participation. This hybrid approach is advantageous as it prevents any single group, miners or stakers, from exerting excessive control over the ecosystem.
Decred also features a decentralized exchange (DEX) that distinguishes itself from traditional order book systems. Instead, it matches trades using a pseudorandom order tallying strategy, eliminating the reliance on order books.
In addition, Decred includes the Politeia Platform, which serves as a platform for proposing and discussing governance-related changes.
DCR: Decred’s native token
DCR is the native token of the Decred ecosystem, designed to facilitate participation and decision-making within the network. Users can utilize DCR tokens in various capacities, such as staking, mining, or participating as a regular voter. Within the Decred ecosystem, DCR tokens serve multiple purposes.
The total supply of DCR tokens is fixed at 21 million. During the initial distribution, 8 percent of the tokens were pre-mined and distributed through an airdrop event, and the cost of acquisition was undertaken by Company 0.
As for the token distribution curve, new Decred blocks generate DCR tokens as rewards. Of these rewards, 10 percent is allocated to miners, 10 percent goes to the Decred treasury, and the remaining 80 percent is distributed among the PoS voters.
Distribution of DCR
DCR is distributed as follows:
- Eight percent of the total DCR supply was pre-mined and airdropped to early supporters, as well as to cover acquisition costs by Company 0.
- The remaining 92 percent of the DCR supply is allocated as block rewards. Of these block rewards, 10 percent is directed to the Decred treasury, 10 percent is allocated to miners, and PoS voters retain the remaining 80 percent.
