A Closer Look at the September DFIP & CFP Voting Round

2024-08-07

DFIPs:

1. Reducing fees for composite swaps on the native DEX
2. More capital efficient DUSD loans
3. Unlocking 5jr and 10jr Masternode Freezers
4. Manual commission payout to simplify tax calculation and reduce node computation load

CFP:

1. Complete Decentralization of DeFiChain Beyond Bake

DFIPS:

DFIP 1: Reducing Fees for Composite Swaps on the Native DEX

High fees associated with composite swaps on DeFiChain's native decentralized exchange (DEX) have been a pain point for users. This proposal seeks to alleviate this issue by implementing a more efficient fee structure.

Key Points:

• Current Issue: Composite swaps involving multiple pools incur high cumulative fees, disadvantaging certain trading strategies.
• Proposed Solution: A single fee per coin involved in the transaction, with only the highest fee being applied when multiple pools are involved.
• Community Benefits: Lower fees will support trading strategies, increase trading volume, and enhance the overall value of the DEX.

This change aims to make trading on the DeFiChain DEX more economical and attractive, fostering greater participation and liquidity.

DFIP 2: More Capital Efficient DUSD Loans

The final proposal aims to improve capital efficiency by introducing a new loan scheme for DUSD loans, allowing for a collateralization level of 120%.

Key Points:

• Enhanced Capital Efficiency: The new loan scheme allows for faster re-collateralization and better leveraging of crypto positions.
• Community Benefits: This provides more favorable conditions for users looking to utilize DUSD loans, enhancing the attractiveness of DeFiChain's financial products.

By offering more capital-efficient loan options, this proposal seeks to bolster the utility and competitiveness of the DeFiChain ecosystem.

DFIP 3: Unlocking 5jr and 10jr Masternode Freezers

The current state of frozen 5-year and 10-year Masternodes has left many users feeling trapped due to the declining DFI price. This proposal seeks to address this by freeing up these locked Masternodes, providing relief to users who no longer wish to be bound by the original terms.

Key Highlights:

• Current Issue: With the decreasing price of DFI, many users are stuck with frozen Masternodes they wish to exit, contributing to dissatisfaction within the community.
• Proposed Solution: Unlock all 5-year and 10-year frozen Masternodes. While this could lead to an initial sell-off of DFI, it is seen as a long-term solution to reduce frustration and criticism from those feeling stuck in DeFiChain.
• Community Impact: Unlocking frozen Masternodes will potentially reduce negative sentiment and create a healthier, more engaged community moving forward.

DFIP 4: Manual commission payout to simplify tax calculation and reduce node computation load

To address the current issues of high computational load and complex tax calculations, this proposal suggests transitioning from automatic liquidity mining reward payouts to a manual claiming system.

Key Highlights:

• Current Issue:
• High Computational Load: Automatic reward payouts every 30 seconds place significant strain on the nodes.
• Complex Tax Calculations: Frequent automatic payouts create numerous transactions, complicating tax reporting for users.
• Proposed Solution: Switch to a manual claiming system. Commissions will be added as liquidity to the pools, automatically increasing the LP coin position of liquidity providers.
• Community Benefits:
• Increased liquidity for traders.
• Simplified tax handling by reducing transaction frequency.

Lower computational load, especially for commission-only pools, as no rewards will need to be calculated.

CFPs

CFP 1: Complete Decentralization of DeFiChain Beyond Bake

This proposal outlines the plan to transition DeFiChain to full decentralization by severing ties with Bake / Cake Group. To ensure smooth operations and continuity, this proposal seeks funding from the Community Fund to support all current operations, including the website, domains, social media, and community channels, under the same management team that has overseen them for the past four years.

Key Highlights:

• Current Issue: As DeFiChain evolves, the need for complete decentralization becomes essential. Ties with Bake / Cake Group hinder this progress, and many in the community seek a fully independent ecosystem.
• Proposed Solution: DeFiChain Labs will operate as an independent entity, receiving $8,000,000 DFI from the Community Fund to support one year of operations. This will cover marketing, community outreach, strategic partnerships, and the smooth transition to a new wrapping provider for dCryptos.
• Community Benefits:
• Operational Continuity: The same team will maintain websites, social media, and other community channels, ensuring no disruption in public presence.
• Sustainable Growth: Dedicated resources will drive marketing and community engagement initiatives, fostering long-term growth.
• Decentralized Governance: Funding directly from the blockchain aligns with DeFiChain’s core principle of decentralization.
• Focused Expansion: Strategic partnerships and ecosystem growth will be supported without reliance on external donations.

Final Words

The five proposals showcase the DeFiChain community's expanding vision — a unified drive toward meaningful adoption and ecosystem-level growth.

While the core developers put effort into enhancing protocol capabilities and decentralized finance features, contributions from the community are what will lead DeFiChain to the forefront of mainstream adoption.

Whether it is infrastructure reliability, developer growth, or exchange exposure - it ultimately comes down to a shared, inclusive outlook that values collective contributions regardless of background or credentials.

Further details and guidelines for submitting a Community Fund Proposal to support their own initiatives are available at github.com/DeFiCh/dfips.

Original: https://blog.defichain.com/2024/08/a-closer-look-at-september-dfip-cfp.html