- DeFiChain has completed its highly-anticipated Grand Central hard fork
- The new upgrade introduces on-chain governance, the DeFiChain Consortium, and more
- DeFiChain is a blockchain for decentralized finance that leverages the Bitcoin blockchain to enhance security
DeFiChain activates Grand Central hard fork
DeFiChain, a blockchain platform that’s providing decentralized finance capabilities on top of Bitcoin, has completed its Grand Central hard fork. The fork was activated on December 8, 2022 at block height 2,479,000.
The Grand Central Hardfork was just executed successfully! ?
Learn more about the four main features here: https://t.co/bfndqbXjtx
— DeFiChain (@defichain) December 8, 2022
By itself, DeFiChain is a Proof-of-Stake blockchain that’s specialized for decentralized finance use cases. The platform stores its most recent Merkle tree on the Bitcoin blockchain periodically, providing an immutable record that can be checked against the state of the DeFiChain blockchain. Instead of providing general-purpose smart contracts capabilities, DeFiChain offers a streamlined set of functions with the goal of limiting the attack surface of the applications on the platform.
The Grand Central hard fork has upgraded the functionality of DeFi Chain with key features. This includes on-chain governance, a token consortium framework, support for masternode parameter updates, and fixes for pool commissions and rewards.
The two most interesting parts of DeFiChain’s Grand Central hard fork are on-chain governance and the token consortium framework.
Through the new on-chain governance feature, DeFiChain community members now have the ability to submit proposals that are then voted on by masternode operators. There are three types of proposals that can be submitted:
- Community development fund requests
- Vote of confidence for DeFiChain Improvement Proposals (DFIPs)
- Block reward reallocation proposals
In contrast to the previous off-chain governance process, the on-chain governance process allows community members to express their preferences directly on the DeFiChain blockchain, and the community will have a real-time overview of voting results. According to the DeFiChain project, this will help boost participation in the governance process, bringing DeFiChain closer in line with the community’s expectations and wishes.
Meanwhile, the new DeFiChain Consortium will provide greater transparency to ensure that DeFiChain’s tokenized digital assets such as dBTC are backed 1:1 with the underlying asset (BTC in this example). In addition, members of the DeFiChain Consortium will be required to pledge collateral in the form of DFI or DUSD tokens, which will determine the amount of digital assets they can mint each day.
Here’s what DeFiChain co-founder U-Zyn Chua had to say about the Grand Central upgrade’s significance for the DeFiChain ecosystem:
“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.”