{"id":"decred","title":"Decred","content":"Decred (/ˈdi:ˈkred/, /dɪˈkred/, dee-cred) is an open-source, community-directed, and self-funding [Layer 1](https://iq.wiki/wiki/layer-1) [cryptocurrency](https://iq.wiki/wiki/cryptocurrency), similar to [Bitcoin](https://iq.wiki/wiki/bitcoin). It was designed to address Bitcoin's perceived shortcomings, including inefficient governance and lack of development funding, by integrating a community-driven governance model directly into its [blockchain](https://iq.wiki/wiki/blockchain)​[\\[7\\]](#cite-id-vhSbRg5dk0363KRc)​[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd). Decred's core principles are security, privacy, and scalability, with a focus on providing stakeholders with tools to enhance their financial sovereignty[\\[9\\]](#cite-id-Xpdf7KDi3YYXcAPQ).\n\n[YOUTUBE@VID](https://youtube.com/watch?v=QhtSqY_2iUA)\n\n## History\n\nThe conceptual foundation for Decred originated in 2013 on the BitcoinTalk forums with a [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) concept called \"Memcoin2,\" introduced by users 'tacotime' (who later created [Monero](https://iq.wiki/wiki/monero)) and '\\_ingsoc'[\\[7\\]](#cite-id-vhSbRg5dk0363KRc). In 2014, a developer entity known as Company 0 began formal development on the project, which was built on [Bitcoin's](https://iq.wiki/wiki/bitcoin) original code[\\[10\\]](#cite-id-vKjrkzxMwPdwnCCY).\n\nDecred was officially launched in February 2016 by some of the same [Bitcoin](https://iq.wiki/wiki/bitcoin) developers that engineered btcsuite, an alternative full-node [Bitcoin](https://iq.wiki/wiki/bitcoin) implementation written in the Go (golang) programming language[\\[11\\]](#cite-id-RbA4Q46dqhehaTjl)​[\\[4\\]](#cite-id-mvt79mxjt5).\n\nKey milestones in its development include:\n\n* **2017:** Decred implemented atomic swaps, enabling users to exchange tokens with other blockchains directly without requiring a centralized exchange[\\[10\\]](#cite-id-vKjrkzxMwPdwnCCY)[\\[5\\]](#cite-id-4vi7nanie6j).\n* **2018:** The project implemented Politeia, its off-chain proposal and voting system for governance decisions[\\[10\\]](#cite-id-vKjrkzxMwPdwnCCY).\n* **2019:** The [Lightning Network](https://iq.wiki/wiki/lightning-network) was implemented on the Decred mainnet, which also enabled support for smart contracts and off-chain transactions[\\[10\\]](#cite-id-vKjrkzxMwPdwnCCY).\n* **2020:** DCRDEX, Decred's native decentralized exchange, was officially launched[\\[7\\]](#cite-id-vhSbRg5dk0363KRc).\n\n## Consensus Mechanism\n\nDecred is designed with a built-in governance system to resolve centralization and governance conflicts present within the [Bitcoin](https://iq.wiki/wiki/bitcoin) system and address the 'tragedy of the commons' that can occur within decentralized [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency)​[\\[1\\]](#cite-id-q8d7l5rq5uc).\n\nDecred's governance system is engineered with a hybridized [Proof-of-Work (PoW)](https://iq.wiki/wiki/proof-of-work-pow) and [Proof-of-Stake (PoS)](https://iq.wiki/wiki/proof-of-stake) consensus protocol[\\[2\\]](#cite-id-ohglbye0d9h). In this model, PoW miners are responsible for validating transactions and creating new blocks, while PoS stakeholders validate the work of miners and vote on governance proposals. This dual-layer system is designed to be significantly more difficult to conduct a 51% attack against than pure PoW or PoS chains[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd).\n\n### Block Reward Distribution\n\nThe rewards for each new block are split among three groups to align incentives across the network:\n\n* **89%** to Proof-of-Stake voters (ticket holders)\n* **1%** to Proof-of-Work miners\n* **10%** to the Decred Treasury\n  This distribution model ensures that stakeholders who secure the network and participate in governance receive the vast majority of rewards[\\[12\\]](#cite-id-0kcsGacuc74NvljO).\n\n### Hash Function\n\nDecred uses BLAKE-256 as its hash function. BLAKE-256 is based around a HAIFA construction that incorporates a variation of the ChaCha stream cipher by Daniel J. Bernstein. The BLAKE-256 hashing function has high-performance ratings on x86-64 microarchitecture[\\[3\\]](#cite-id-wh5a6h3gumr).\n\n## Governance\n\nDecred operates as a [Decentralized Autonomous Organization](https://iq.wiki/wiki/dao) (DAO) where coinholders who stake their DCR have direct voting rights on network changes, development proposals, and treasury spending[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd). Influence is acquired by having \"skin in the game\" through staking[\\[9\\]](#cite-id-Xpdf7KDi3YYXcAPQ).\n\n### Politeia\n\nPoliteia is Decred's off-chain proposal and voting system. It allows stakeholders to publicly propose, discuss, and vote on project-related initiatives, including treasury fund allocations, protocol upgrades, and policy changes. All proposals are time-anchored and censorship-resistant to ensure a transparent governance process[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd)​[\\[10\\]](#cite-id-vKjrkzxMwPdwnCCY). A Decred Constitution sets out guiding principles for the project, which can also be amended via Politeia proposals[\\[12\\]](#cite-id-0kcsGacuc74NvljO).\n\n### Decred Treasury\n\nThe Decred Treasury is a self-funding, decentralized entity that receives 10% of every block reward. This model creates a sustainable source of funding for project development, marketing, and other initiatives as approved by stakeholder votes, eliminating reliance on external capital[\\[9\\]](#cite-id-Xpdf7KDi3YYXcAPQ)​[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd).\n\n## Key Features and Ecosystem\n\n### DCRDEX\n\nDCRDEX is a native, [peer-to-peer](https://iq.wiki/wiki/peer-to-peer-trading-p2p) [decentralized exchange](https://iq.wiki/wiki/decentralized-exchange) (DEX) built using atomic-swap technology. It is funded by the Decred DAO and features no [trading fees](https://iq.wiki/wiki/trading-fee) or [Know Your Customer](https://iq.wiki/wiki/know-your-customer-kyc) (KYC) requirements, facilitating trustless trading across different [blockchains](https://iq.wiki/wiki/blockchain)​[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd)​[\\[13\\]](#cite-id-vbD5zklqXSJNugzZ).\n\n### Privacy\n\nDecred incorporates optional, opt-in privacy through CoinShuffle++ (CSPP), a trustless coin mixing protocol that enhances user anonymity. The technology uses post-quantum secure cryptography, and the total coin supply remains auditable to prevent hidden inflation[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd)​[\\[12\\]](#cite-id-0kcsGacuc74NvljO).\n\n### Scalability and Lightning Network\n\nDecred has integrated the [Lightning Network](https://iq.wiki/wiki/lightning-network) for [Layer 2](https://iq.wiki/wiki/layer-2) scaling, which enables faster and cheaper payments. An application built on Decred's [Lightning Network](https://iq.wiki/wiki/lightning-network) is Bison Relay, a secure communication platform[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd).\n\n## Tokenomics\n\nDecred Token (DCR)\n\n#### Token Utility\n\nDecred's native [cryptocurrency](https://iq.wiki/wiki/cryptocurrency), DCR to receive tickets, which are non-tradable assets used to participate in the [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake) (PoS) consensus mechanism and vote on governance proposals[\\[6\\]](#cite-id-M6nopmmlEe)​[\\[10\\]](#cite-id-vKjrkzxMwPdwnCCY).\n\n#### Supply and Emission\n\nLike [Bitcoin](https://iq.wiki/wiki/bitcoin), Decred has a maximum supply of 21 million DCR. The block reward, which is the rate at which new DCR are created, reduces by 1% approximately every 21 days[\\[8\\]](#cite-id-2kaRnnGtXsPfjzdd).\n\n#### Initial Distribution\n\nAt launch, 8% of the total 21 million DCR supply (1.68 million DCR) was premined and distributed as follows:\n\n* **50%** was allocated to the founding organization, Company 0 (36%), and the Decred development team (14%). Company 0 airdropped its DCR for free over many years, as a way to decentralize it's holdings and bootstrap the network; while the development team’s allocation was locked for 12 months.\n* **50%** was distributed via an airdrop to eligible participants, with a cap of 5,000 maximum participants. Preference was given to contributors to the project.\n  The remaining supply is minted through mining rewards[\\[6\\]](#cite-id-M6nopmmlEe).","summary":"Decred is an open-source cryptocurrency launched in February 2016, featuring a hybrid Proof-of-Work and Proof-of-Stake consensus mechanism. 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Money Evolved\",\"timestamp\":1773846085634},{\"id\":\"Xpdf7KDi3YYXcAPQ\",\"url\":\"https://coinmarketcap.com/currencies/decred/\",\"description\":\"Decred Price, DCR to USD live, marketcap and info\",\"timestamp\":1773846085634},{\"id\":\"vKjrkzxMwPdwnCCY\",\"url\":\"https://learncrypto.com/popular-coins/decred\",\"description\":\"What is Decred?\",\"timestamp\":1773846085634},{\"id\":\"RbA4Q46dqhehaTjl\",\"url\":\"https://news.softpedia.com/news/amid-bitcoin-centralization-worries-core-developers-start-new-currency-called-decred-498137.shtml\",\"description\":\"Amid Bitcoin Centralization worries...\",\"timestamp\":1773846085634},{\"id\":\"0kcsGacuc74NvljO\",\"url\":\"https://docs.decred.org/\",\"description\":\"Decred Documentation\",\"timestamp\":1773846085634},{\"id\":\"vbD5zklqXSJNugzZ\",\"url\":\"https://www.bitget.com/academy/what-is-decred-crypto-dcr-price-surge-forecast\",\"description\":\"What Is Decred (DCR)?\",\"timestamp\":1773846085634}]"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmQQPvixMRwWQ3XHR4fztMa7u4VHismxtGmbpdVxTpTBmT\""},{"id":"commit-message","value":"\"Removed overview and history content\""},{"id":"previous_cid","value":"QmQQPvixMRwWQ3XHR4fztMa7u4VHismxtGmbpdVxTpTBmT"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x7da121Af2c3Fc2e65eDCD3573a403C352B4538Aa"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":["decred"],"founders":["jake-yocom-piatt"],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"477c3347-98ae-4d2f-87a5-4ca0eea24e99\",\"title\":\"Decred\",\"description\":\"Decred is an open-source cryptocurrency launched in February 2016, featuring a hybrid Proof-of-Work and Proof-of-Stake consensus mechanism. 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