It is time to welcome a brand-new token consortium and on-chain governance framework, Grand Central hard fork, to DeFiChain, the world’s leading decentralized, proof-of-stake blockchain on the Bitcoin network.
The new development aims to extend the decentralized financial application (DeFi) access to a wide user base. The blockchain has officially activated the Grand Central hard fork on its network.
The activation occurred on 8 December 2022, at 01 am EST on Thursday, on Block Height 2,479,000. This is a monumental update for DeFiChain this year as it addresses a much-awaited product debt and ensures accelerated growth for the DeFiChain community in 2023.
The exchange will be rolling out the following key features:
- On-chain governance
- Token consortium framework
- Pool commission & reward fixes
- Masternode parameter updates support (for owner, operator, reward address)
According to DeFiChain’s co-founder U-Zyn Chua, Grand Central activation is a major step in the governance infrastructure of the exchange because it implements on-chain governance. It will make the voting procedures more transparent, strong, and convenient for its governance structure. That’s a welcome step for the entire ecosystem.
Regarding on-chain governance, community members can submit 3 kinds of proposals, which Masternode owners will vote on. The three proposals are listed here:
- Block reward reallocation proposal
- Vote of confidence (aka DeFiChain Improvement Proposal; DFIP)
- Community development fund request proposal (aka Community Fund Proposal; CFP)
At the moment, the proposal creation and voting process are conducted off-chain. On-chain governance will enable a proposal that needs community voting will be directly conducted on DeFiChain.
This will improve its governance structure and make the voting process fully transparent. Results will be available in real-time on a dashboard that can be accessed on defiscan.live to ensure easy tracking.
Masternode owners can generate a script to vote for each proposal through the dashboard to reduce the effort involved in voting. The changes would allow a superior level of participation in proposal voting.
DeFiChain Consortium will encourage a proper structure for dAssets backing so that all digital assets can be backed. Consortium members like Cake DeFi will have a dedicated key to mint and burn tokenized digital assets.
Each member will have to back any digital assets they minted, whether they minted for themselves or on behalf of their platform’s users.
Moreover, they will have to pledge two days’ worth of collateral in DUSD or DFI, which will be locked up in a smart contract apart from backing the tokenized digital assets. This collateral will determine the number of digital assets each member can mint daily.