Web3 has become Jurassic Park!
Dino coins are making a comeback, and in today’s thread, we’ll be covering the 9-year-old network, Decred, which has recently made its way back into the top 100 cryptocurrencies by market cap!
Let’s go!
What is Decred?
Decred is a hybrid Layer 1 blockchain powered by both Proof-of-Work (PoW) and the Proof-of-Stake (PoS) consensus mechanisms. Since the mainnet launch in February 2016, Decred has had its ups and downs, but for the last few years of hovering under the radar, Decred has been building for this very moment…
3- And that is the resurgence of privacy-focused blockchains…
How Does Decred Work?
Decred was built by a team of Bitcoin developers who also worked closely with Monero. Capturing the best of both worlds, Decred is both public and private, and achieves privacy through an opt-in system called CoinShuffle++.
If enabled, the system will mix transactions, which hides sender identities by mixing them up with a large group of other transactions. Although not private by default, many institutions, regulators and sometimes individuals rely on transparency for auditability, hence the underlying blockchain is public. Nevertheless, privacy is still paramount on Decred!
Just like many other privacy-focused networks and cryptocurrencies, Decred has a very weak ecosystem in relation to DeFi. Nonetheless, they have their own native DEX for P2P trading with zero fees or KYC, and Decred’s main objective is to focus on creating the next generation of money, which always evolves; very simple.
Decred Governance & Staking
As a self-funded, community-driven Layer 1, the network focuses on decentralized governance via staking, enabling stakeholders to vote on all protocol upgrades and funding through the Politeia proposal system. Due to its hybrid PoW/PoS design, all block rewards are split among PoW miners, PoS voters, and a community treasury for network development!
89% of each block reward is distributed to PoS voters, while 1% is split among PoW miners and 10% returns to the community treasury. Out of the 17.11M $DCR coins in circulation, 60% of it is currently staked. Stakers earn an estimated 5% APY and earn more for every governance vote they participate in.
$DCR Token
In a nutshell, $DCR’s main utilities are staking & governance, and performing transactions, including sending and/or trading on the native DEX. To many, $DCR can be seen as a store of value, just like $BTC, $ZEC and other cryptocurrencies.
Conclusion
At the time of writing, $DCR is trading at a price of $33.90 with a market cap of $580.3M, ranking it the 97th largest cryptocurrency. In April 2021, $DCR achieved an ATH of $250, and along with many other “dino coins”, they dropped in price, and have been dormant and BUIDLing until this very moment.
How long and how high these dino coins can go is a mystery to unravel, but we’ll be watching $DCR along with many other sleeping giants!
Disclaimer
The content provided in this article is purely informational and nothing said is financial advice. Proceed with caution and always invest what you are prepared to lose. Remember that you are entirely responsible for your assets and investments and the author and the publication do not endorse any of the cryptocurrencies, protocols and/or strategies in this article.
