Decred stands for Decentralized Credit and is governed by a model, which relies on the votes of Decred (DCR) investors to make policies for the future of its protocol. Decred managers arrived at this solution after assessing what happens to blockchain projects when there is no known policy maker for the management of an ecosystem.
For instance, In Bitcoin case, it led to Bitcoin Gold, Bitcoin Cash, Bitcoin Private, and many more. Their verdict led to the application of a hybrid consensus algorithm model, retaining the advantages of Bitcoin’s Proof-of-Work (PoW) model while decentralizing the policy-making process with Proof-of-Stake (PoS).
Recently, the Decred team said that Politeia, their new proposal system, is in production on the mainnet.
Investing $23M to Decred Investors
Though the Politeia project took almost one and half years to be realized, it has made the Decred turn over a treasury of 570,000 DCR, which is currently valued at $23 million. Decentralizing the policy making process of an entire ecosystem does not directly bring success for its future, the reverse can also be true.
In a bid to hearten the best out of the DCR investors, who currently have a say in the company’s management, a warning was included in their report.
“It is important to understand that Politeia is a very powerful tool: it can enable all manner of positive developments for Decred, but if used unwisely, it can lead to a wide variety of problems.”
Yocom-Piatt employed the rest of the post to provide his experience in running the treasury. To offer more information about the $23 million, which is currently under the hands of the community, he stated that since Decred’s launch in 2016, spending had been reduced to $2.8 million, or 130,000 DCR.
Sharing the spending budget in US dollars and DCR mirrors the significance for timing investments well in a highly volatile market. If you are interested in staking for DCR, it is advisable to read about what goes into managing a crypto project- from the manager himself.