Tokenomics

Distribution of tokens for DeFiChain's ecosystem incentives

DeFiChain's tokenomics is designed with a clear distribution strategy. Initially, 1.2 billion $DFI coins were minted as the native token for the DeFiChain .

Native $DFI tokens can then be "wrapped" into DST-20 $DFI tokens enabling them to be used within the MetaChain Layer Ecosystem.

Out of this:

• 49% was issued to the DeFiChain Foundation at the start.

• The remaining 51% is designated to be issued to Masternode holders over time.

From the 49% initially issued to the DeFiChain Foundation:

• 49% will be retained by the DeFiChain Foundation itself.

• The rest may be distributed to accredited investors, large funds, and institutions, collectively referred to as external partners. This distribution aims to fund the initial adoption & development of DeFiChain.

It's crucial to note that the DeFiChain Foundation is committed to decentralization. As such, it will not retain more than 49% of all initially issued tokens.

There will NOT be a public ICO.

Distribution of Metachain's Native Token: $DFI

Token Distribution Breakdown

• 49% Initial supply

  • 24.01% Reserved for DeFiChain Foundation

  • 25.99% Allocated for External Partners

• 51% Distributed to Masternodes over time

Future tokens can only be acquired through staking, which ensures a decentralized and fair distribution to the community.

Below is a chart showing the total stacked percentage of $DFI tokens distributed over time

Stacked Token Distribution of $DFI

Utility and Use Cases

$DFI tokens can be used for:

• governance (voting on proposals),

• staking (earning rewards),

• paying for transaction fees,

• accessing specific platform features.

Additionally, they might be used as collateral in lending and borrowing protocols or for liquidity provision in decentralized exchanges.

Hint: For a more comprehensive understanding of $DFI's utility and use cases, developers and interested parties are encouraged to refer to the the [insert additional link]

Metachain 2023 Roadmap

MetaChain's Mission and Vision:

MetaChain's mission is to provide people (and eventually machines and devices) with seamless access to decentralized financial services. MetaChain aims to offer high transaction throughput, reduced risk of errors, and intelligent feature development tailored for financial services on the blockchain. The goal is to create a reliable alternative form of financial services built on top of Bitcoin.

Background/Industry

DeFi’s Promises and Challenges: Decentralized Finance (DeFi) aims to offer a range of financial instruments without intermediaries, ensuring trustworthiness. Financial services today, despite being essential, come with high costs, lack of transparency, and inaccessibility to many. Cryptocurrency and DeFi present an opportunity to overhaul the existing system. However, while cryptocurrency has attracted significant investments, DeFi services are still in their infancy. There's a vast potential to offer financial services in crypto, similar to those in fiat currency.

Comparing Existing DeFi Alternatives

Bitcoin: Why Not? While Bitcoin is the most recognized cryptocurrency, it's not ideal for DeFi due to its limited smart contract capabilities and high transaction costs. The Bitcoin blockchain is best suited as a store of value.

Turing-complete Solutions: Ethereum, EOS, Tron: These platforms, especially Ethereum, have been the primary choice for DeFi applications. However, their Turing-complete nature has led to vulnerabilities and complexities. The high risks associated with these platforms have resulted in increased costs for users.

MetaChain Solution

Staying in the Bitcoin Ecosystem: Despite the volatility in the cryptocurrency market, Bitcoin remains a stable and trusted entity. Building decentralized financial services around Bitcoin can tap into a significant opportunity.

Building on Top of Bitcoin: DeFiChain anchors itself to the Bitcoin blockchain to ensure security and immutability. By doing so, MetaChain can leverage Bitcoin's stability while offering functionalities that Bitcoin inherently lacks. MetaChain will be an enhancement to the dedicated non-Turing-complete DeFiChain blockchain to provide rapid throughput, security, and simplicity, making it ideal for DeFi applications and beyond.

Enhanced Features of MetaChain:

• Robust Decentralized Proof-of-Stake architecture ensuring both scalability and fortified security.

• Swift transaction processing without compromising on safety measures.

• Comprehensive multi-token support enabled by advanced decentralized wrapped token technology.

• Empowered decentralized governance model.

• Autonomous operation, free from external financial system dependencies.

• Seamless connectivity facilitating interoperability between UTXO and EVM ecosystems.