Key takeaways:
- Grand Central, a governance-oriented upgrade for DeFiChain, went live on December 8 at block height 2,479,000
- The hard fork brought on-chain governance and improvements to transparency and minting of decentralized tokens on DeFiChain
- DeFiChain co-founder U-Zyn Chua said that the upgrade is “a major step for the whole ecosystem”
The highly anticipated DeFiChain upgrade sets the stage for accelerated community growth in 2023
DeFiChain, a blockchain company leveraging the security of the Bitcoin network to expand the decentralized finance (DeFi) ecosystem, rolled out the Grand Central upgrade on its network earlier today.
The hard fork went live at Block Height 2,479,000, bringing several new features to the growing network, which has recently overtaken Solana in terms of total value locked (TVL) on its rails. The list of features includes on-chain governance (OCG), a token consortium framework, pool commission and reward fixes, and support for masternode parameters.
With the Grand Central rollout, the DeFiChain community seems primed to take the next step in growth and transparency. Speaking about the major development, DeFiChain co-founder U-Zyn Chua noted:
“Grand Central marks a major step in DeFiChain’s governance structure since it is implementing on-chain governance. This makes the voting processes perfectly transparent, easier and strengthens the governance structure of DeFiChain. A major step for the whole ecosystem.”
As a part of OCG, members of the community will be able to submit proposals for development fund requests, votes of confidence, and block rewards reallocations. The proposals will end up being implemented if they receive sufficient support from masternode owners. The vote tally for eligible proposals, and voting itself, will be made available on the defiscan.live dashboard, in real-time.
DeFiChain Consortium is set to increase transparency and prevent overminting
One of the core features of the DeFiChain ecosystem is the so-called decentralized tokens (dTokens), which can be minted by anyone on the chain, as long as 100% of the minting value is backed with collateral. Sparing the technical details, DeFiChain allows for the minting of decentralized wrapped assets that track both crypto and traditional assets via dedicated price oracles – for instance, Tesla (dTSLA) and Ethereum (dETH).
Thanks to the DeFiChain Consortium launched as a part of Grand Central, the 1:1 backing of decentralized digital assets in the DeFiChain ecosystem will be enforceable via blockchain, with each member of the Consortium having their own key for creating (minting) and destroying (burning) tokens.
Consortium members will have to provide the full backing amount in DFI or DUSD, which will be locked in a smart contract for the duration of two days. The amount of tokens pledged for backing will mint how many new tokens can be minted.
Overall, the on-chain governance and the Consortium token framework will elevate transparency in the ecosystem and provide an additional layer of security against overminting.
