Delfy: A 100% Community-governed Decentralized Finance Protocol
Decentralized Finance is not ideally decentralized if the whole activities of the platform is controlled and decided solely by the team and developers. DeFi space is full of autocratic developers with empty promises.
What if the users could decide and govern the affairs of DeFi protocols? This means that teams and developers would have very minimal control over the decisions and course of the protocol.
Delfy creates a totally decentralized protocol where all the financing activities are controlled by the community of users. In addition to the best decentralized finance services that Delfy offers, implementation of the Decentralized Autonomous Organization, DAO, will abolish the insecurities and trust issues associated with DeFi. All what these mean is that you are in total control of how the protocol operates.
How does this work?
By implementing this governance system, users can propose the addition of new features to the protocol, or modification of the existing features.
When a user submits a proposal, it would be subjected to a time-stamped voting system by the community. The result of the pool would determine if the proposed feature would be implemented or not.
Practically, this is how it works;
You woke up to a lightbulb moment and got a genius idea about a landslide feature Delfy could incorporate.
Because you are dedicated to the long-term success of Delfy, all you could think of is how to implement your genius idea into the protocol.
Since Delfy is completely decentralized, you take to your device, and open the governance section of the platform.
With the click of few buttons, you submit your proposal, and send the voting page link to the community.
Then the community votes for or against your proposal, and the result of the time-stamped poll would determine the fate of your submitted proposal.
This is how easy it is for you to contribute to the operations of Delfy.
All these submissions and voting takes place on the blockchain using smart contracts for transparency.
Requirements to submit and vote a proposal.
There are so many bad actors in DeFi space, including developers and users. These bad actors could take advantage of the total decentralization of Delfy to implement features that are potentially disastrous to the protocol.
To curb and get rid of these acts, Delfy puts in place requirements that a user must meet before being able to submit a proposal, or participate in a poll.
- Before a user can submit a proposal, the user must have a certain amount of the governance token, “DelfyGov” staked either in a pool or in a vault.
This means that the user must have any DelfyGov pair (DelfyGov-ETH, DelfyGov-Delfy, DelfyGov-USDT, etc) staked in a pool.
Also, a user that stakes “a certain amount” of DelfyGov in a vault would also be able to submit a proposal.
Note that the staked tokens would be locked till the end of the poll. That is, you cannot unstake or withdraw the staked tokens till the fate of your proposal is determined by the community.
- To vote in a poll, the users must have any DelfyGov pair staked in a pool, or DelfyGov staked in a vault. “These are not locked”.
The beauty of this governance system is that the staked tokens would be generating and farming interest while the poll is still on. So, it is a win-win situation for the users.
How the votes are calculated.
After a proposal has been submitted, the community must vote for or against the proposal.
To avoid users that could game the system with multiple wallets, Delfy created a system that doesn’t count individual wallet votes as valid votes, but the total amount of tokens staked by individual voters.
In simple illustration;
If A and B users vote for a proposal, and C, D and E users vote against the same proposal, the actual number of votes would not be 5, but the total number of DelfyGov they staked.
A staked 2 DelfyGov, B staked 5, C staked 1, D staked 4 and E staked 1.
The total number of valid votes would be 2+5+1+4+1, which is 13.
7 votes would be for the proposal, while 6 votes would be against the proposal.
This system is in place to create a fair polling system that doesn’t give room for manipulations.
Types of proposals that can be submitted.
A user can submit any form of proposal, but the basic ones are;
- To reduce the supply of Delfy
- To increase the supply of Delfy
- To increase block reward
- To reduce block reward
- To limit or restrict pool participations, that is, volume of tokens in a pool.
These are the basic proposals, but the list will keep increasing over time.
In a bid to offer an ideal decentralized protocol, Delfy creates a governance system that gives the total control of the protocol to the community. DeFi should be “decentralized”, and achievement of absolute decentralization is a major goal of Delfy.
Find out more on the official website at https://delfy.info/
Join the community on telegram at https://t.me/delfyfinance
Telegram announcement at https://t.me/delfyfinanceann
Follow the latest development on twitter at https://twitter.com/DelfyGov