The end of 2020 is finally here. We’ve had an extremely busy 2020 at Dether despite the global pandemic that happened across the globe, releasing the Dether protocol and blockchains interoperability solutions with Bitcoin, Polkadot and Kusama.
What’s coming in 2021 is even more exciting. Today, we are delighted to introduce the upcoming DetherDAO: a logical step towards a fully decentralized Dether protocol with its governance mechanisms.
Dether is an international peer-to-peer network of individuals and businesses willing to buy and sell cryptocurrency for cash and spend it at physical stores nearby.
Since 2017, we’ve been focused on creating the Dether ecosystem to be a bridge between crypto and fiat across the globe. Inspired by Satoshi Nakamoto’s vision to create a peer-to-peer electronic cash system for Bitcoin, coupled with the state of the current, unfair remittance market, we decided to create an easier solution for financial inclusion that incorporated the vast potential of blockchain, available to users across the globe using cash, and without the need for a bank account.
Our belief is that the beauty and power of blockchain technology should be easily accessible to all. That’s the reason why we built a protocol based on Ethereum that allows individuals to be able to interact with the Ethereum blockchain without the need for a middleman.
The Dether App
The Dether App is your cash to crypto on/off ramp. It is a decentralized mobile application (dApp) that enables individuals in over 140 countries to buy and sell crypto locally with cash — no bank account needed, and no fees taken by us.
First launched on testnet in 2017, then on mainnet in August 2018, the Dether app creates a direct bridge between cash and cryptocurrency (ETH, BTC, ERC20 tokens, Polkadot & Kusama). With the Dether App, we have built a frictionless solution for individuals willing to trade crypto with others.
The Dether Protocol
Built on the Ethereum blockchain, the Dether protocol is a decentralized OTC network of crypto buyers, sellers and shops all over the world.
Our mission statement
Since Day 1, our mission has always been and remains to break barriers to cryptocurrency adoption by creating a trustless bridge between cash and cryptocurrency.
Decentralization is at the heart of blockchain; it is even viewed, in the words of Vitalik Buterin, as “blockchain’s entire raison d’être.”
As an example, Ethereum enables anyone to build unstoppable applications: a trustless digital world where its applications don’t have any kind of censorship, fraud or third party interference.
A world where you can participate in a democratic and autonomous organizations without previously knowing any participants. In fact, when one buys crypto, it then becomes possible to access and interact with blockchain. While we’re living in an important time in history, where blockchain technology, and especially Bitcoin and Ethereum, are changing the world, one of its greatest challenges remains mass adoption.
A logical step towards a fully decentralized protocol
Initially built on top of the Dether protocol, the Dether App was a first step in breaking barriers to crypto adoption by enabling individuals and businesses across the globe to buy and sell Ether, ERC20 tokens, Bitcoin, Polkadot and Kusama with cash without any middleman.
While launching the Dether App was a first step in building a network of crypto individuals and businesses around the globe, a protocol opened to any dApp was thus needed in order to have a network effect. The border between a dApp and a protocol becomes blurred when it comes to mutually benefiting from a common network of users around the world.
Since its launch on Ethereum main net, it’s possible with the Dether Protocol to participate and/or benefit from a decentralized database of crypto individuals and businesses.
While the Dether protocol is an open protocol for dApps and crypto projects that share crypto cash-in and cash-out issues, it still had some elements of centralization that didn’t make it fully decentralized or trustless.
Following our vision towards a fully decentralized crypto cash-in/out protocol, it seemed logical and natural to use the power of a decentralized autonomous organization (DAO) to make the protocol fully decentralized.
Moreover, we have also seen with the DeFi (Decentralized Finance) mouvement that decentralization was and still is at the core of blockchains value proposition. Building a DAO on top of the Dether protocol enables the community to use its collective intelligence in order to create a better self-sustainable economy on top of it.
That’s the reason why today, we are happy to introduce the DetherDAO.
Governance of the DetherDAO
Managing the different parameters of the Dether protocol
Currently, one smart contract is managing all the different parameters of the Dether protocol.
With the DetherDAO, parameters will be subject to evolutions based proposals and votes of the participants in the DAO.
These parameters include:
- The floor stake price for a zone on the Dether Map. When a zone is free, tellers need to stake the licensing fees (the minimum being 100 DTH). Currently set by default at 100 DTH per zone, the DetherDAO will be able to change it to a minimum of 1 DTH and more per zone. Moreover, the change will be able to occur per country delimited by geohash within the the Dether Protocol smart contract.
- The Bid period is currently set at 48 hours. The bid period opens when a competitive seller opens an auction on a zone owned by another seller on the Dether map. The DetherDAO will be able to change it to X or Y amount of time.
- The cool down period is currently set at 24 hours. The cool down period represents the amount of time a seller has to wait before being able to open an auction on a zone that has just been created or auctioned . The DetherDAO will be able to change it to X or Y amount of time.
- The entry fee. It represents the fees taken to the seller when he opens an auction. To open or join an auction, a seller must pay an entry fee of 4% of the DTH tokens staked by the current owner. The DetherDAO will be able to change it to X or Y %.
- The zone tax. Based on the Harberger tax principles, it represents the daily fee paid by the zone owner on what he has staked in DTH to own the zone. Every 24 hours, zone owners pay a tax of 0.04% of their own staked DTH. The DetherDAO will be able to change it to X or Y %.
- The minimum raise. It represents the minimum amount to raise when joining an opened auction on a zone. Currently, to open or join an auction, you must always bid at least 6% more than the current highest bid. The DetherDAO will be able to change it to X or Y %.
More information about the current parameters on the Dether Protocol Portal.
All votes and proposals will take place on a front-end app like Aragon.
A new created smart contract will have the rights to call the parameters to change the protocol elements. DTH token holders will be able to participate in the DetherDAO by making proposals and voting on proposals to influence the Dether’s protocol parameters.
The number of votes and quorums needed to participate will be progressively determined.
Stay tuned for more information about it soon and happy 2021 from the Dether Team!
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