What Is Decred (DCR)?
Decred is a blockchain-based cryptocurrency with a strong focus on community input, open governance, and sustainable funding for development. It utilizes a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining system to ensure that a small group cannot dominate the flow of transactions or make changes to Dcr without the input of the community. A unit of the currency is called a (DCR).
Decred is open to contributions across all domains, including software development, design, communications, community support, research and documentation. At its core, is an open source project with a mission to build free software which provides universal access to a method of securely storing and communicating value.
The strength of the open source approach to production is that individuals efficiently allocate themselves to the tasks they are most interested in and apt for. Contributors are typically not keen to spend time managing or directing others, so this model tends to only suit people who enjoy working independently in a self-directed manner.
Decred Storage Key Points
|Circulating Supply||13,756,844.73 DCR|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
How Does it Work?
Stakeholders make and enforce the blockchain’s consensus rules, set a course for future development, and decide how the project’s treasury is used to fund it. Decred blockchain is similar to Bitcoin’s, but with major aspects of governance baked into the protocol. To align incentives, block rewards are split between Proof-of-Work (PoW) miners, stakeholders and the Dcr Treasury, which funds the project.
Proof of Stake
Proof of Stake voting is central to Decred governance. Dcr holders can time-lock (or “stake”) DCR to obtain voting tickets. Tickets are randomly called to vote on-chain; this involves both approving the work of PoW miners and voting Yes/No on any open rule change proposals. 30% of the block reward goes to the holders of the tickets that voted in that block.
Proof of Work
Proof of Work miners play a similar role for Decred as they do for Bitcoin, but with they only receive 60% of the block reward. The remaining 10% of the block reward goes into the Treasury. Holders of live tickets decide how that treasury is used through Polite proposals and voting. The Decred Constitution sets out some guiding principles for the project; the constitution is subject to amendment through Politeia proposals.
Decred employs an innovative hybrid Proof-of-Work/Proof-of-Stake system that layers security and carefully aligns incentives. This system yields the best of both worlds, making it an order of magnitude more expensive to attack than pure Proof-of-Work or pure Proof-of-Stake.
Decred’s built-in governance systems empower its community with formal rights to make consensus changes and manage project-level decisions. These systems make Decred adaptable, allowing it to evolve per the will of the stakeholders, resist forks and incorporate new technology over the long run.
Decred continuously funds its treasury with 10% of each block reward and employs a flexible contractor model that allows contributors to receive compensation for their work. This makes Decred a sustainable and self-funded Decentralized Autonomous Organization.
Decred has a Treasury fund to pay contributors who work effectively to advance the project. To become a paid contractor one must demonstrate that one’s work is of value to the project. The recruitment blog post by Project Organizer Jake Yocom-Piatt is the definitive guide to becoming a contractor. The people who are best placed to judge whether a new contributor would make a good addition to a team are the people who are already working in that team.
New contributors who produce good work will be invited to become a paid contractor. At present, this process is informal, but a formal process for granting a Decred Contractor Clearance (DCC) that allows an individual to bill for their work has been proposed and approved by stakeholders. This DCC model will go live once the contractor management system is operational.