The Decred team announced the proposal that users are to participate in governance, a significant milestone on the roadmap. This decision give every stakeholder to make changes by voting, this ensures all interested participants are represented in significant decisions that will affect the cryptocurrency.
Decred, The Evolution
Jake Yocom-Piatt, former Project Lead for Decred, announced sometime in 2015 after overseeing the development of an alternative full-node of Bitcoin, BTCSuite. BTCSuite is a widely used Bitcoin library that’s been used for several high profile projects and implementation of lightning networks.
Jake subsequently turned BTCSuite into Decred and implemented a hybridized governance system; combining Proof-of-Work (PoW) system of Bitcoin Core with Proof-of-Stake (PoS).
Proof-of-Stake (PoS) adds an extra layer on the decentralized platform and allow users vote on proposed network changes. Users supply tokens rather than using computational power to participate in votes for protocol changes.
How The Voting System Works
To become a voter, users stake, or purchase voting rights in the form of tickets at average costs of 50 Decred tokens (DCR) for each ticket (price for the ticket fluctuates).
Voting is meant to enforce new consensus rules as the proposed system will signal to indicate to the development organization that the community needs a particular feature implemented.
The voting system is an overarching goal of becoming a stakeholder directed Decentralized Autonomous Organization (DAO). As other projects have attempted to create DAO though smart contracts, Decred builds a DAO in several steps, which ensures the component works independently before putting it into production.
Although this system looks complicated, it ensures substantial Decred holders like exchanges and wallet providers aren’t able to participate in the process and have a say over the whole network.
Why Stakeholders Should Have More Power
Stakeholders are the ones who are affected by changes made to the network. They are also considered the real end users; those who the system is made for, and in the case of a decentralized network, the end users should have an ultimate say.
How To Vote?
First of all, you need to get some DCR (Decred Tokens) for yourself. The token is what we need to invest DCR funds in the Proof-of-Stake process by joining a PoS pool. The method of Staking is designed as a lottery with guaranteed rewards.
To participate in voting and earn rewards, you’ll need to buy lottery tickets. The ticket grants everyone voting rights via the PoS pool. Each time one of the tickets is called to vote on a block, there’s a reward after the vote is confirmed. The pool is always available, so there’s no chance to miss a vote.
To participate in the voting process, you need to download a desktop wallet of your PC.
Buy or send some Decred Tokens to the wallet.
Join a staking pool and signup on pool’s website. Copy the API key as provided, click here to see a list of pools and their domain.
To buy tickets, go to ticket tab on the paymetheus/decredition wallet. You will see current ticket price Decred Tokens needed to vote. Click Manage Pools and input your API keys. You are now connected to the pool.
Enter the number of tickets you’ll like to buy. There’s a default fee of 0.001 for the transaction. Click Purchase; you’ll be asked to enter your passphrase to complete the transaction.
After purchase, your ticket enters the mempool to be mined.
How Long Does It Take To Start Voting?
Once tickets are mined, it’ll go to an incomplete state. It takes a day for tickets to go live and ready to be used for voting.
Profit On Votes
For every vote you make, you’ll receive your Decred spent on purchasing the ticket with the reward of 1.45 DCR tokens (this is not static, it will reduce as time goes on).
It’ll take up to 24hrs for your profit to be spendable again.
Tickets can vote within a two days period is the stakeholder is ‘lucky’. If the ticket isn’t used during the stated period, it expires and cannot be used again. The price at which the ticket is purchased is refunded in such cases. But the chances of having an expired ticket is very unlikely.
What’s Next For Decred
The next step in achieving this goal is the public proposal system, which is an off-chain system where Decred users can submit proposals for future work to be considered by the development team.
The proposal system is comprised of two components, DCRTime, a timestamping feature and an off-chain proposal data repository. The system models the work of Peter Todd’s open timestamp that allows an unlimited number of hashes to be timestamped on a blockchain.
The only disadvantage of having an off-chain data storage is giving up decentralization for data being stored on a centralized server which can fail or shut down by a government.
On the Decred platform, block rewards are divided as thus: 60 percent goes to PoW miners, 30 percent to stakeholders contributing to PoS, and 10 percent goes to a development fund. Before initiating development on any issue, the development team will request input from users by putting the decision up for a vote. This focuses the team’s attention on updating what’s wanted by the community alone.
To know more about the Decred decentralized platform and its token, click here.