Algorithmic Decimal stablecoin creation

 

On November 8, 2022, Anatoly Berdnikov announced the completion of the architecture and documentation development for the algorithmic stablecoin Decimal USD (DUSD) with liquidity in popular cryptocurrencies.

On February 16, 2023, the company announced preparations for the launch of DUSD. In the Decimal Smart Chain, the stablecoin will be introduced as a payment instrument tied to fiat currency (in countries where cryptocurrency is officially permitted and accepted for trade and commerce).

Decimal LTE PTD has reported obtaining the necessary licenses for the stablecoin launch:

• Digital payment token service: This license allows the use of cryptocurrency for buying/selling or providing a platform for cryptocurrency exchange.
• Merchant acquisition service: With this permission, the company can provide processing services, such as a payment gateway and POS terminals. This means that users will be able to make payments with partner companies that accept cryptocurrency.
• E-money issuance service: This license allows the company to issue electronic money for subsequent use as a payment instrument, as well as register electronic wallets and perform actions with them (top-up, withdrawal, transfers between wallets within the system).

Decimal LTE PTD will continue to obtain the necessary licenses to operate in different countries and collaborate openly with companies that are ready to supply blockchain users with liquidity for DUSD. Funds (reserves) in the required currency will be created to support DUSD.

On July 28, 2023, after the release of the DEX on the AmpleSwap platform and the verification of its contract on the Mainnet of Decimal Smart Chain, the successful launch of DUSD was announced. The DEX functionality allows the formation of trading pairs, ensuring the liquidity of the stablecoin in the market and conversion to DUSD/BUSD/USDT, as well as additional liquidity pools.

DAO — decentralized autonomous organization, software built on Decimal smart contracts

Decentralized Autonomous Organizations (DAO) are one of the key innovative elements in the field of blockchain technology. DAOs are organizations that function based on smart contracts and algorithms, allowing them to autonomously manage and make decisions without the need for centralized control or intermediaries.

Part of Decimal’s philosophy is to provide the community with the opportunity for collective management and decision-making in a transparent, secure, and efficient manner.

The DAO tool allows blockchain participants to have full control over their financial assets and participate in decision-making processes.

The role of smart contracts in blockchain governance

The concept of the Decimal DAO was announced and extensively explained by Anatoly Berdnikov during a webinar on November 15, 2022, dedicated to the new edition of the Decimal Whitepaper and the Decimal roadmap for 2023.

After the release of Decimal Smart Chain, the capabilities of the blockchain expanded, and the horizontal scaling of the network is now limited only by the influx of new independent DApp developers, buyers, and coin/token issuers. To create the most favorable conditions for current and future participants, the decision was made to transition the blockchain governance to a DAO format, transferring the managerial and controlling functions directly to the community.

Smart contracts have made the existence of DAO organizations possible. They are a type of contract based on rules that have been ordered by functionality. Since DAOs do not have centralized control, all internal processes are based on a voting system by participating parties. No one can make decisions regarding the DAO without the agreement and approval of the other participants. Furthermore, no changes can be made to a smart contract once it has been activated, as all data within it is public.

Advantages of a decentralized autonomous organization based on blockchain

The Decimal technological platform fully enables users to actively participate in the lifecycle of the DAO. Here are just a few of the advantages:

1. As DAO is a decentralized organization, participants have the right to vote on its functioning.
2. DAO organizations also facilitate global communication between different communities, as well as enable the concept of effective promotion, growth, and worker rights protection.
3. The main advantage of DAOs is that they offer unconditional trust and transparent sustainability, which helps focus on corporate interests. Participants do not need to know each other, as the rules of interaction are documented in a transparent, secure, and open blockchain registry.
4. DAOs simplify the process of creating new structures within the blockchain, as all that is required is to program the company on the blockchain and launch it. This is a very cost-effective and resource-saving solution. Decimal, as a DAO developer company, specializes in creating automated and self-sufficient organizations for various industry needs.

DAO Decimal: implementation steps

• The release of the DAO Whitepaper (http://decimalchain.com/wpdao_en.pdf) officially took place on May 12, 2023. The document is not final and is continuously being refined based on community feedback. The Decimal management regularly conducts informative AMA sessions on the Binance Live platform, informing the community about completed and planned steps and gathering feedback.
• By May 2023, preparations for the issuance of the governance token of DAO Decimal — DDAO, were completed. DDAO is an algorithmic coin created on the Decimal platform. Its value is determined by the CRR parameter in accordance with the rules of the Decimal blockchain and is backed by a reserve of the native coin DEL.

Decimal LTE PTD has allocated a reserve of native DEL coins to support the issuance of 1 billion DDAO, which is planned to be conducted in 5 rounds. All blockchain users can purchase DDAO with their available DEL and thus gain voting power to influence the decisions made in DAO Decimal. The reverse exchange of DDAO to DEL through the Decimal system is not possible until the completion of the fifth round of issuance.

• The launch of the first round of DDAO issuance took place on May 14, 2023, and the issuance of 200 million DDAO (~$4 million) was completed on May 17, 2023. The maximum issuance threshold for the first round was reached within three days. The starting price was 1 DEL, and by May 19, it had reached 1.15 DEL.
• The second round, out of five, took place from June 24 to August 8, 2023. 360 million DDAO were redeemed during this round. The starting price for the second round was 1 DEL = 1.1557 DDAO. By the end of the round, the exchange rate was 1 DDAO = 1.4845 DEL.
• Currently, the project administration is preparing updated documentation. Details are being discussed with the community to make final amendments to the DAO Whitepaper. The dates for the remaining three rounds will be determined as the DAO roadmap is executed.

The Decimal user community owns the issue and takes part in project management and process organization

Membership in DAO

Anyone with a Decimal network address who owns DDAO tokens and has sent them to the Decimal DAO contract address can become a participant in DAO. The contract automatically records and distributes shares of participants based on the number of participants, the total amount of DDAO, and the model embedded in the DAO contract.

Privileges of DDAO holders

In the 2023 roadmap (the third year of Decimal blockchain operation), there are several basic products designed to provide the fundamental infrastructure for scaling the attractiveness of the Decimal blockchain: DAO, Decimal Launchpad, DEX, DUSD (Stablecoin).

As per the contract terms, DAO participants receive:

1. Voting power proportional to the amount of DDAO tokens delegated to the Decimal DAO contract address.
2. Staking from the organization’s total capital, with further expansion up to the current Total Supply.
3. Network fees directed to the DAO capital (a portion of transaction fees, ticker fees, etc.).
4. Distribution of fees from all products developed under the management of DAO.

   4.1 Liquidity pool fees.

   4.2 Fees from the initial distribution of Launchpad tokens, a fee for each successfully conducted round.

   4.3 Fees from DEX transactions.

   4.4 Fees from NFT marketplace auctions (DApps).

   4.5 Other fees and any other token proceeds from products developed under the management of DAO.

Participation in DAO governance

All DDAO token holders are part of the Main Governance—the main decision-making and management body of the project. The Main Governance of Decimal DAO determines the strategy, develops policies and rules, records community requests and initiatives, and makes decisions that impact the entire Decimal ecosystem.

DAO participants collectively make decisions on specific issues or proposals through voting. Decimal DAO uses a negative voting mechanism. For example, if a proposal receives 100 positive votes and 30 negative votes, the total number of votes will be reduced to 70. Achieving a certain quorum of votes is required to make a decision.

DDAO holders utilize voting power for voting. Voting power depends on the duration of depositing, frequency and quality of participation in voting, as well as the weight of the vote. Each DDAO token has a voting weight, where 1 token equals 1 vote. The longer a participant holds tokens and actively participates in voting, the greater their voting power will be.

DAO Voting

Users who have a balance of at least 10,000 DDAO tokens locked in the Decimal DAO smart contract can submit proposals for community voting.

Types of proposals that can be put up for voting include:

• Changes to the governing body of DAO, committees, and departments.
• Changes to the technical or documentary structure.
• Appointment and distribution of grants.
• Marketing matters, etc.

Within the Decimal DAO structure, various voting mechanisms are implemented, such as voting on the platform and voting on third-party services.

The voting cycle includes the following stages:

1. Public community voting.
2. Validator voting.
3. Evaluation of specifications and resources.
4. Voting on Snapshot.
5. Implementation of proposals.

Further steps for DAO development in 2023:

DAO and its necessary components are the main priority for the development team in 2023. The further development priorities and direction will be determined by DAO, and the products developed by the team under the management of DAO will become integral parts of the organization.

Q3 — 2023

• Creation of a blog, voting mechanics, and proposal submission on the Decimal console.
• Implementation of a proposal moderation module by validators.

Q4 — 2023

• Implementation of Snapshot and Tally in the Decimal console interface.