Decred Makes Consensus Change to Further Decentralize $128M Treasury

Decred (DCR), a digital currency that emphasizes security, privacy and scalability to empower stakeholders, today announced the passage of a vote to further decentralize its treasury, currently worth $128 million. 

In 2018, the project gave the community the power to vote on how treasury funds are spent with the launch of Politeia, it’s off-chain proposal system. The new process will enable stakeholders to review the contractor payout each month and vote on whether to approve it via their wallet. This will greatly increase the transparency of treasury spending and eliminate the risk of treasury fund theft, which improves security, the platform believes. It will also further empower stakeholders who will be able to veto or approve all treasury spending. 

The move to further decentralize the treasury is the latest example of Decred’s built-in governance system, which  allows it to make changes to consensus rules while avoiding community-splitting hard forks. The vote was enabled with the launch of Decrediton v1.6 in January and passed April 9 with 83.18 per cent in favor. The new rules will be activated in approximately 26 days (7,264 blocks). Previous examples of consensus changes made by the project include modifying the stake difficulty algorithm and integrating the lightning network. 

“Cryptocurrencies need a way to evolve, scale and adapt to stay relevant and meet the needs of stakeholders,” said Jake Yocom-Piatt, cofounder and project lead at Decred.org. “Decred’s governance system enables us to do this and it’s rewarding to see it empowering our community once again to make decisions, particularly consensus changes, that are in the best interest of all – not just a select few.”

The news comes following several recent DCR price surges after the launch of the project’s decentralized exchange, DCRDEX, in October, news of Decred’s use in Brazil’s municipal elections in November and the launch of Decrediton v1.6, one of the project’s largest technological developments to date, in January.