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Buy Decred FAQ - Coinmonks.md

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Why should people buy Decred?

Decred is a community-directed digital currency with built-in governance to make it a superior long-term store of value. It is backed by sustainable funding for development and adapting according to the wishes of its stakeholders.

People should buy Decred if they want to store their wealth in the form of a secure decentralized cryptocurrency.

People should stake the Decred they buy if they want to play an active role in securing the network, enforcing the rules, and deciding how it should evolve.

Is Decred's blockchain secure?

Hybrid Proof-of-Work mining + Proof-of-Stake voting leverages the power of PoW while enhancing security with an additional layer operated by DCR holders who stake their DCR to buy tickets. In every block, five tickets are selected to vote, and their input is required to create the next block. Stakeholders review the work of miners block by block, making secret or selfish mining impossible without controlling many tickets.

Why not just PoW?

While Decred's hashrate keeps growing, having a hybrid system allows Decred to be fork-resistant and twenty times more expensive to attack than PoW-only networks.

Having a Proof-of-Stake system also enables built-in formalized governance that allows changing the consensus rules while avoiding hard forks. And the decentralized Treasury enables developers to focus on developing a secure store of value. and not third-party interests.

How is Decred development funded?

Those who stake DCR

DECIDE

which development projects

get funded.

Decred is self-funded. 10% of the block rewards go to the Treasury. Those who stake DCR decide which development projects get funded. Through the Treasury, Decred has already hired more than 30 developers, 20 community managers, and a PR agency to work on the project. The governance platform, Politeia, enables stakeholders to submit, track, discuss and vote for proposals.

Does Decred have good developers?

Decred has a team of amazing developers. And its Roadmap includes Lightning Network, a new Decentralized Exchange and privacy features.

Is Decred a DAO?

Yes, the Decred community considers itself as a Decentralized Autonomous Organization (DAO) and works towards decentralizing the whole governance process. As it moves towards becoming a DAO, Decred is intentionally designed to fund all the parties involved in its governance.

Decred's block reward subsidy incentivizes participation from all of the different actors needed to maintain and improve the network. 60% for Proof-of-Work miners, 30% for Proof-of-Stake voters, and 10% for the Treasury.

Stakeholders lock their DCR to buy tickets and have an incentive to make choices that are in the network's best interests. Ticket Price varies and is adjusted dynamically every 144 blocks. You can check the latest prices using the DCR Data blockchain explorer.

Every Decred community member with skin in the game - stakeholders, developers, and miners - can vote on the direction of the project. Stakeholders collectively determine the policy, development plan, budget, and consensus rule changes. They also approve the miners' work -effectively aligning interests to ensure the best possible outcome for all.

Further readings on buying Decred:

Decred: An Investment Thesis - by Wally Hansen

Placeholder's Decred Investment Thesis - By Joel Monegro & Chris Burniske

Blockhead Capital's Decred Investment Thesis - By Blockhead Capital

DCR Investment Thesis (PODCAST) - By Murad Mahmudov