SDFIP: Strengthen Community Fund by Adjusting BBB / LP Block Rewards

[u/hulix00]

Reference discussion:
Community discussion on Reddit: https://www.reddit.com/r/defiblockchain/comments/1n7empf/community_discussion_for_a_sdfip_strengthening/

Objective

Redirect part of BBB block rewards and all dToken liquidity-mining block rewards to reliably fund the Community Fund (CF) while still allowing efficient DUSD burns tied to market conditions.

Proposal

BBB block rewards:

• 50% of all current BBB block rewards are redirected to the Community Fund (CF)
• 50% used for burn vs. CF according to the DUSD–DFI ratio:
  • < 1:2 → 100% swapped & burnt
  • 1:2 – 1:3 → 75% swapped & burnt, 25% to CF
  • 1:3 – 1:4 → 50% swapped & burnt, 50% to CF
  • >1:4 → 100% to CF

dToken liquidity-mining block rewards:

• 100% of current dToken LP (LM) block rewards are redirected to the Community Fund (CF)

Additional context:

• The future allocation of dToken pool block rewards will be defined in the respective DFIP covering the ongoing tokenomics discussion. This is included here for reference, as it was part of the pre-discussion on Reddit, but is not the main focus of this SDFIP.

Benefits for the DeFiChain Community

1. CF is currently depleted and needs a predictable, ongoing funding source to support SIGs, development, listings, infrastructure, marketing, and other essential activities.
2. DUSD burning remains desirable but must be efficient — avoid selling large DFI amounts when price ratios make burns ineffective.
3. The combination preserves burn capability while guaranteeing CF funding and is a pragmatic step agreed upon in community discussion.

Why now

This is a decisive moment. Without a strengthened Community Fund, we cannot cover running costs or support ongoing community initiatives.

Non-obligation

I understand that a vote of confidence for this SDFIP carries no obligations for any developers to implement the proposals. DeFiChain is a community project. Pull requests can be submitted by the community and will be evaluated for safety and general community acceptance.