Decred (DCR) Summary: Training wheels have been taken off as Politeia goes live

Decred’s price action brought us several ups and downs throughout the last month. Experiencing several higher highs throughout the month of September, the currency briefly peaked at $40.88 on the 30th. October saw the price drop to $37.86 on the 3rd and from here DCR entered a strong uptrend. The uptrend peaked at $45.48 on the 9th before the general market crash led the currency to the monthly low of $36.61 on the 13th. Daily trade volume exploded to over $10.5 million around this time. These lows didn’t last long as DCR bounced towards a high of $44.28 on the 15th. Ever since, the currency entered a relatively slow downtrend.

At the moment of writing, Decred can be purchased for $39.00 USD (2.04% rise in the last 24 hours)/0.00597242 BTC (1.95% rise in the last 24 hours). This value is 70% lower from the currency’s all time high of $131.44 and also represents a gain of 4.54% in the last 30 days. Daily trade volume is sitting at $711,132, with Upbit and Bittrex delivering over 60% of that. With a market cap of $338,625,382, Decred is currently 28th most valuable cryptocurrency on the market.

ForecastCity sees an opportunity to long BTC:

“Technical analysis:

  • DECRED/BITCOIN is in a range bound and the beginning of uptrend is expected.
  • The price is below the 21-Day WEMA which acts as a dynamic resistance.
  • The RSI is at 50.
  • The price downtrend in the daily chart is broken, so the probability of the resumption of an uptrend is increased.

Trading suggestion:

There is a possibility of temporary retracement to suggested support zone (0.00594 to 0.00540). If so, traders can set orders based on Price Action and expect to reach short-term targets.”

Check out the complete analysis, along with the entry zone for the trade, here.

Decred is a project which was born when its creators noticed that Bitcoin struggled with its direction many times in the past, with projects like Bitcoin Cash being the best proof of this. Decred developers decided that a Bitcoin with some form of governance is required to avoid similar problems in the future and thus their current project was created.

Decred offers the safety and robustness of Bitcoin’s Proof of Work model while having a decentralized decision making system. This system is called Politeia and has recently gone into production on Decred’s mainnet. This development was confirmed in a blog post released by the project, thus marking an important milestone in Decred’s existence. The tool was developed for 18 months and came alongside the development organization ceding control over the accumulated project subsidy of roughly 570,000 DCR ($23 million) to Decred stakeholders.

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Politeia will let Decred users and stakeholders propose, discuss, collaborate on and fund new projects, initiatives and consensus changes on the project’s blockchain. The project’s community will fund these activities with money from the mentioned subsidy/treasury, one that Decred’s development organization so far spent $2.8 million/130 thousand DCR from. There is a catch to these funds being used as per Jake Yocom-Piatt, Decred’s organizer and CEO of Company Zero (the company which created the project):

“Once Politeia is in production on mainnet, all releases of Treasury funds will require a stakeholder vote. However, to release the funds, it still requires me to sign transactions as a Manager of the development organization, meaning that this control of funds is “soft” control. Since release of project treasury funds will still require my approval as a Manager and route through a conventional corporate entity, I will retain the ability to veto releases of funds.”

The veto is there as the last gasp solution if the release of funds would jeopardize the project or the development organization. Still, the organization and Mr. Yocom-Piatt believe that this option will never have to be used. Once the treasury is backed by a smart contract (one that will have its first draft made in 3 months) the veto powers will become moot.

The blog post goes further into the project, explaining its open source ethos. The company encourages prospective developers to show up to Decred hackathons and see if they like the project and its current devs. Emphasizing the need for an effective vetting process that will manage new contractors and make sure they’ll deliver good work, the organization is working on implementing a Decred Contractor Clearance system designed just for that purpose.

This new Politeia system will bring about increased sovereignty to the community. While the manager will still have the final say, the system will function similarly to the classic Proof of Stake models where stakeholders determine the way the chain is governed.

“Decred was designed from the ground up to give permissionless representation to anyone willing to have skin-in-the-game, and I encourage stakeholders to think independently and exercise their sovereignty accordingly in that same spirit,” says the project’s organizer.

Politeia is supposed to help with other potential issues that could face the independent Decred system. Conflicts of interest, professionalism of the service, independence of contractors, management of elected and appointed officials, and entitlements are all addressed in the mentioned blog post. The blog post also describes the issues of easing into Politeia, financing of project’s core development, adding more funds to the treasury in the future, potential spending constraints and bonuses, and transparency. You can read more about all of these issues straight from the devils mouth.

Decred has certainly made a big step forward with Politeia. The training wheels have been taken off and the project’s treasury is in the hands of the community. Time will tell how and if this will benefit the Decred project in the future.

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