1. What lead to the development of Decred?¶
Here are a series of blog posts that discuss the motivation1 for Decred:
2. How do you pronounce Decred?¶
The correct pronunciation2 is in the opening line of the Decred Constitution.
Decred (/ˈdi:ˈkred/, /dɪˈkred/, dee-cred)
In other words, it is a long e as in the word decentralized.
3. How was the Decred premine distributed?¶
The premine consists of 8% of the total supply of 21 million coins (1.68 million coins).3 This was split equally between compensation for bring-up costs and an “airdrop”.
Bring up costs (840,000 coins, 50% of premine, 4% of total Decred supply)
The development of Decred was funded by Company 0 and from the pockets of its developers individually. The cost of developing the project, in terms of developer pay, totals to approximately USD 300,000, which Company 0 paid to developers. An additional amount of approximately USD 115,000 has been allocated for unpaid work and individual purchases by developers. Company 0 felt that the most equitable way to handle compensation for these expenses was to perform a small premine as part of the project launch. The model is unusual in that no developer received any amount of coins for free – all coins owned by developers were either purchased at a rate of USD 0.49 per coin from their own pockets or exchanged for work performed at the same rate.
This means Company 0 and its developers will have put roughly USD 415,000 into the bring-up since April, 2014 and receive 4% of the total supply, 840,000 coins (at USD 0.49 per coin). Coins held by Company 0 will be used to fund its ongoing work on open source projects, such as Decred and btcsuite.
When Decred launched in February 2016, the developers and project members committed to not trade any of their bring-up DCR for 12 months and Company 0 committed to not trade any for 24 months.6 These coins will however be used to purchase proof of stake tickets with the intention of making the Decred network harder to attack during its infancy. As the community participation in PoS increases, the amount of tickets purchased using the premine will be reduced proportionally. 7 8
Airdrop (840,000 coins, 50% of premine, 4% of total Decred supply)
Rather than allocating the entire premine to the bring-up costs, the remaining half of the premine was spread evenly across a list of airdrop participants. Airdrop sign-up was available to anybody and ran through January 2016. Not everybody who signed up was selected to participate in the airdrop - Decred is fundamentally about technological progress, so the airdrop targeted individuals that have made contributions to advance technology in its various forms. There was also a large number of fraudulent sign-ups which needed to be carefully identified and dealt with.4
The airdrop concluded with awarding 282.63795424 DCR to 2972 participants.5
Giving away these coins in an airdrop accomplished several things for the project: enlarging the Decred network, further helping to decentralize the distribution of coins, and getting coins into the hands of people who are interested in participating in the project. These coins were given away unconditionally and there was zero expectation of Decred receiving anything from the participants in return for these coins.