The DFI token functions as an integral unit of account within the DeFi ecosystem. This next-generation utility token provides a seamless medium to conduct transactions on the DeFi blockchain. Its unique technical aspects give the DFI token some truly remarkable functionality.
The DeFiChain Foundation
The Singapore-based DeFiChain foundation is the group responsible for the issuance and maintenance of DFI tokens. This group consists of a variety of highly respected blockchain and financial experts. Their goal is to provide advocates of decentralized finance with all the services found traditionally in the centralized markets and more.
DFI Token Uses
The DFI token utilizes advanced protocols integrated directly into the DeFi blockchain to provide users access to a wide range of financial activities. Unlike other blockchains, the DeFi blockchain only supports financial applications. Developers choose to eliminate all casinos and gaming to reduce network congestion and focus on the expansion of the DeFi sector exclusively.
One of the primary uses of the DFI token is to pay fees within the DeFiChain ecosystem. Similar to Ethereum, developers need to put forth tokens to execute their smart contracts. This strategy eliminates spam posts and ensures that only public-worthy coding fills the blockchain.
The DFI token can also serve as a means of collateral for other cryptocurrencies. Since the DFI token functions as the main medium exchange within the network, it makes sense to allow users to use it as collateral for Bitcoin and Ethereum loans.
Users earn passive income when they stake their DFI tokens on a network wallet. Blockchains that rely on Delegated-Proof-of-Stake consensus mechanisms consume far less electricity than their Proof-of-Work alternatives. Notably, anyone can initiate a new staking node for 1,000,000 DFI tokens.
These tokens remain locked in your staking node until you decide to stop staking. At that point, you receive these tokens back. In this way, you can earn extra tokens and help secure the DeFi blockchain.
DeFi Custom Token (DCT)
The DFI token also allows developers to issue tokens known as DCTs. These tokens share the security of the DeFi token. However, developers can choose custom features to fit their application requirements. Importantly, this feature also provides the security token market an important doorway into the DeFi blockchain network.
DFI tokens allow anyone in the ecosystem to participate. For example, you can submit a budget proposal to the DFI Foundation for 500 DFI. Budget proposals go under review and a vote by masternodes.
DFI Token Distribution
The DeFi Foundation will issue 1.2 billion DFI tokens in total. Of the total, 49% will be available in the initial release. The group intends to issue the remaining 51% to masternodes over time. Keenly, the foundation will utilize the remaining 49% of future tokens to fund further expansion of the DeFi ecosystem. Additionally, some of these funds will go towards securing high-level market partners.
Where Do I Get DeFi Tokens?
Getting your hands on some DFI tokens is easy. There are a couple of different ways to acquire these unique financial instruments. Primarily, participating in the ecosystem is the best way to earn DFI tokens. The DeFi Foundation intends to conduct airdrops to HODLers, market makers, and other users of the DeFi Blockchain.
If you are not technically inclined, you can always scoop up some DFI at your favorite exchanges and platforms. The DeFiChain Foundation is currently working on integrating with tier one and two exchanges. At present DFI Tokens are available at:
Stake Your DFI
You can also stake your DFI tokens at CakeDeFi. Cake DeFi allows DFI token holders to earn significant returns on their holdings via their internal staking mechanism. Currently, Cake DeFi has a special offer for DFI Token holders that provides returns far beyond any other digital asset on the platform.
DFI Utility Token — Opening the Door for the DeFi Community
You have to hand it to the developers of this multipurpose token. They were able to achieve the perfect balance between functionality and usability through the integration of next-generation blockchain protocols.
In Nov 2020, DeFiChain will be launching tokenization support, its DEX and a liquidity pool. This will bring an exciting new avenue of yield farming to the crypto space. You can expect to see a lot more DeFiChain token news in the coming weeks as the platform pushes the boundaries of decentralized finance to new heights.
Originally published at https://www.cryptofolds.com on September 12, 2020.