DFract Beta version
Last updated
Last updated
Update, Nov 2nd 2023 : DFract Beta Version is being discontinued. No new deposits are accepted. Withdrawals of $USDC.axl will be available by the end of November 2023. Read all the details: https://medium.com/lum-network/sunsetting-the-dfract-protocol-beta-version-a2277bce07fb
❗The information shared in this sections shows the design decisions that were made to make DFract available as early as possibly.
The roadmap shows milestones to achieve the full-featured DFract explained in the previous parts of the whitepaper. The version explained in this whitepaper is the ultimate version that is planned to be achieved by the end of 2023.
Before reaching this stage, DFract will go through several steps. The first of which is the currently available version : the Beta version. While the end result remains the same, the Beta version differs quite a bit from the full-fledged version.
In its Beta version, you will only be able to buy $DFR with $USDC directly on the protocol built on the Lum Network. During this length of time, holders won’t be able to claim back their share of the treasury. Why? Because while in Beta, the Protocol will use this time to compound weekly the staking rewards it made to accrue value.
The staking feature does not exist in the Beta version. It won’t be necessary for DFract holders to stake their tokens to accrue yield.
The $DFR token will follow the long-term value variation of its underlying basket of assets. Over time, these assets will grow via the staking rewards. Therefore, holding $DFR will expose you to the dollar value growth of the basket.
During this launch phase, DFract is partnering with a renowned professional validator that has already proven itself in the past, and who is also present in the Lum Network validator set.
In the Beta version, projects of the Interchain on which Imperator operates its own validation node will be selected. You can check their website following this link : https://imperator.co/
As stated previously in this document:
DFract is an autonomous, community governed Protocol
Issued $DFR tokens cannot be redeemed from the Protocol against its treasury - except, to some extent, in the event of an activation of the inverse bonding mechanism
Due to those two aspects of the DFract project, and in the event $DFR holders would decide the project not worth continuing and would prefer to get their share of the treasury, the community must agree to enable the “community-initiated project carry off”.
Since this project carry off activation process requires discussions from the DFract community, the general process to activate it shall be debated and follow those base rules:
More than 2/3 $DFR holders agree to activate it through a governance proposal on the Lum Network
The Protocol code of the carry off activation must be implemented in accordance to the activation proposal and the resulting community discussions
Subsequent proposal(s) might be required in order to either debate and/or validate the activation
The project carry off activation shall be available only during the Beta version in the event the project remains stalling for too long or does not find its product market fit
It is important to note that the “project carry off” is intended to boost confidence for early participants in the project by providing a rational and safe exit from it. This feature is a conceptual and intellectual agreement about how to stop the project as a community. It is not part of the code of the protocol itself, until its activation has been voted for and the details of its activation have been discussed by the community.
