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DeFiChain Allocates 1 Million DFI To Reward Liquidity Providers

DeFiChain, the leading blockchain on the Bitcoin network has announced that its community has elected to award substantial mining incentives for its ERC-20 DFI token pairs on Uniswap. More than 96% of participants supported the proposal that was put forward by DeFiChain’s Lead Researcher. The platform made the decision to encourage the mining of DFI-ETH, DFI-USDT, and DFI-USDC pairs on Uniswap’s liquidity pool. Consequently, DeFiChain has contributed 1 million DFI tokens from the Community Fund to the pool.

DeFiChain reward structure and liquidity pools

The DFI-ETH pair will now earn 0.5 DFI for every Ethereum block under the new reward structure. On the other hand, DFI-USDT pair will earn 0.25 DFI per Ethereum block, while DFI-USDC pair will get 0.25 DFI per Ethereum block. Furthermore, a smart contract on the Ethereum mainnet will guide the distribution of the rewards in line with a specific schedule. Smart contracts are distributed in tranches for security reasons.

Each Ethereum block will receive one DFI token. As with DeFiChain mainnet’s DFI emission rate, block rewards will be reduced by 4% every seven days, in blocks, beginning at 9AM UTC on August 22nd. Before that point, rewards will only be given out at a consistent rate of 1% of the above-mentioned rates.

DFI’s utility on ERC-20 is will likely grow exponentially thanks to the addition of additional liquidity pools and an array of new projects. On the Ethereum blockchain, DeFiChain enables the whole DeFi community to access its decentralized assets. The assets include stocks, commodities, and ETFs, over the Ethereum network. In addition to providing investors with a positive return on investment, this will also give Ethereum users new use cases.

A tiny portion of the block rewards go to the Community Fund. There are currently 27,092,291 DFI tokens accessible to developers on the DeFiChain blockchain who wish to use them. Also, before any release, there must be agreement from more than 51% of the nodes in the network. Masternodes have the ability to agree or deny a proposal by signing a message.