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Dchain Governance

The native social signalling governance token is DT. The staked total of these tokens represent the total voting power of the network.

On top of the onboarding requirements for validators, see chapter on verifiable data notarisation, Dchain governance is designed to onboard accountable DApps.

Smart contract deployment module (for deploying DApps) are permission-ed, i.e. decentralised applications legal entities must be onboarded and acquired relevant verifiable credentials for its deployment. Similarly, the registration of notary, state transition utilities, token factory registration, all have the same requirements.

DApps as part of the Validator set​

As part of Dchain application deployment requirement, DApp are also expected to provide validation services.

This is a beneficial requirement for compliant and/or regulated services for several reasons:

  • transparently demonstrate the approval or rejection to state changes in their applications
  • have stake in the control of the network, i.e. perform governance tasks (see Oversight Committee)
  • be compensated in otherwise already required tasks; it is likely that such applications must provide transaction data archival to regulating bodies, by running validators, they are rewarded by transaction fees and inflation rewards to support their infrastructure costs

Two-Tier Governance Structure​

Most blockchain governance is either too slow or too easily captured by large token holders. Dchain addresses this with an Opt-in DAO participation model where voting rights require appropriate credentials, creating legally defensible governance structures across jurisdictions.

Dchain implements a two-tier system that balances progressive decentralisation with regulatory compliance:

1. DT Token Holders (Opt-in DAO)​

Anyone holding DT tokens and verified credentials can propose and vote on changes. Proposals auto-execute onchain after a defined grace period unless vetoed.

Delegation Note: Importantly, delegation only applies to block production, not governance voting. This prevents the concentration of decision-making power.

Voting Requires DAO Membership Voting on proposals requires opt-in membership in the DFoundation DAO. This opt-in structure protects non-participating stakers from potential liability in jurisdictions where DAOs may be treated as general partnerships.

To vote, you need:

A verifiable credential from D-Foundation

Complete KYC/AML verification

Pass an assessment on D-Foundation's mandate

Note: For Testnet users, credentials are issued automatically.

2. Oversight Committee​

The Oversight Committee is a Governance Multisig composed of informed stakeholders (e.g., application operators, auditors, technical experts).

This committee holds two primary powers:

Veto Power: They can veto a proposal passed by Token Holders within the defined grace period if it poses a security risk or regulatory violation.

Emergency Actions: The Oversight Committee can directly execute a clearly defined set of urgent actions on Dchain to ensure the network responds to regulatory requirements or security incidents in a timely manner.

Governance Process Flow: