Decred is a cryptocurrency that combines two consensus models: proof of work and proof of stake. When new blocks are mined, 60% of the block reward goes to proof of work miners, 30% to proof of stake voters, and 10% to fund development of the protocol. Stakeholders may also vote on changes to the protocol itself.
What is Decred (DCR)?
Decred (DCR) is a blockchain-based platform with a primary focus on community input and open governance. The platform welcomes everyone to participate, join project groups and contribute to development. As per the whitepaper, the platform operates with the hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining process. The hybrid model ensures that a small group does not overpower the flow of transactions or modify Decred without the community's inputs. The protocol aims to facilitate sustainable funding for the development of the cryptocurrency.
Further, DCR is the native utility token of the Decred platform. Decred holders can stake DCR to obtain voting tickets to vote on on-chain decisions. Also, 30% of the block reward goes to holders of the tickets who vote in one particular block. DCR token holders get an opportunity to choose a project by randomly sealing their coins in exchange for tickets in order to gain staking rewards. Listed below are some of the ways a user can acquire Decred (DCR):
Purchase Decred on an exchange: Cryptocurrency exchanges allow swapping digital currency for Decred, or direct exchanges permit Decred to be purchased with traditional currency. Also, traders permit extensive purchases of Decred at a set price.
PoW mine reward as Decred: Proof-of-Work (PoW) is a measure of using computational power to design and demonstrate the cryptographically protected blockchain.
Participate in proof-of-stake voting: Proof-of-Stake (PoS) voting is executed by the stakeholders who seal a certain amount of their DCR tokens in return for voting rights and economic rewards.
Donate to Decred: Decred is available to contributions across all domains. Community members are paid for the contribution made in Decred and further obtain DCR.
Trade goods or services with someone who already holds Decred: Another way to acquire Decred is to utilize a user’s skills, knowledge, and experience, which are in demand or requested by other members of the Decred community.
History of Decred (DCR)
Jake Yocom-Piatt is the founder of the Decred platform. The platform went live on February 8, 2016.
