DeFiChain will be launching various decentralized financial (DeFi) transactions soon. As with all financial services, centralized or decentralized alike, liquidity is key in adoption. An exchange with a bare order book would not be attracting much trading action.
Yield Farming is created for the same reason, to drive adoption and action for many DeFi activities, especially that of new protocols and services. DeFiChain requires a mechanism for us to drive adoption.
Recent increase of miner reward
With the recent move by DeFiChain Foundation to unstake all its 288 nodes, and placing them into a single publicly-verifiable address, staking reward for DeFiChain has seen a major increase in yield. Before this move, stakers received about 25% — 28% of mining reward p.a., since the unstaking of foundation nodes just recently, stakers have now been receiving 40% — 50% of mining reward p.a.
25% of miner reward to be set aside into a smart contract for DeFi incentive funding.
If this proposal and the previous one (#1) passes, block reward would look as follows:
- 135 DFI as mining reward for masternode
- 45 DFI goes to DeFi incentive funding smart contract
- 19.9 DFI goes to community fund
- 0.1 DFI goes to Bitcoin anchor reward smart contract
This should bring staking (masternode) reward back to the previous 25% — 30% level.
This proposal does not cover the usage and drawing down from the smart contract. Usage will be covered in a separate proposal.
Upon approval, this proposal will be implemented during the next hard fork.
A decision between immense long-term gains or mere short-term thinking
We know you are all still excited because of the recent bump of staking rewards since we shut off our own masternodes a couple of weeks ago.
Now this proposal would mean going back to normal, and we truly do understand why some of you might not like that idea.
However, we encourage you to start thinking in the most profitable way — in the long term way.
Accepting this proposal would be rocket fuel for DeFiChain, meaning it would also be rocket fuel for the pockets of early adopters like you!
Important Information regarding the proposal
As stated in our last update, the DeFiChain Foundation has shut off all its own masternodes; DeFiChain cannot and will not be voting.
This means that the outcome of this proposal is 100% in the community’s hands.
We do hope, however, that you do accept this proposal in order to enable sustainable and lasting growth of DeFiChain, and with that decide for the most profitable way in the long-term while just sacrificing some recent short-term gains.
Also, we do not yet have a set date for when the votes will actually be starting.
This announcement is merely to inform you about the upcoming vote sometime soon and to encourage discussion and feedback from you, our community.
As to how the voting actually will take place: you will get an email from us in time explaining how exactly you can vote, no matter if you are running your own masternode or staking on a platform like Cake.
With that said, you should definitely also check out our 1st proposal and we are looking forward to hearing your opinions!