The Strategic Framework for Scaling Centrifuge

How any organization or person can create value for Centrifuge.

The History

Since 2017, Centrifuge has been building the credit infrastructure for the decentralized debt ecosystem that will create a more fair financial future for all.

In that time, Centrifuge has emerged as the leader in RWAs (Real World Assets), merging the industries of DeFi and TradFi, and outlining the Protocol’s Roadmap to execute its vision.

From Day 1, Centrifuge was designed to be a DAO, with the core team operating as a Self Managed Organization (SMO). The SMO has allowed each contributor to be most effective, to give the project the greatest creative flexibility, and to allow for a smooth transformation into a DAO — when the time was right.

Within the past 18 months, the core contributor team has grown from 10 to 40+. This has seen the beginnings of our DAO take shape, including the spin out of DeFi Capital Markets and the creation of k/factory to support the core team members in their continued efforts to grow and develop Centrifuge.

In the midst of all this change, the opportunity has emerged to articulate the Strategic Framework for scaling Centrifuge as the DAO decentralizes over time.

The Framework

This framework has been created to allow any organization or person to understand how they can join, contribute to, and create value for Centrifuge. As the decentralization of Centrifuge continues, the core team is focused on creating an inclusive environment to empower the growth of collective community infrastructure.

This framework is a Version 1. It has been put forth to create a starting point by which people can begin to understand Centrifuge more deeply and propose to amend and enhance this framework over time.

The Strategic Framework is comprised of three Layers:

The Ecosystem

The Ecosystem is focused on creating more economic opportunity for more people as it expands in scope and as the value that is created is shared by more people. Participants are defined as any individual or organization that is aware of RWAs and actively supports the mission and vision of Centrifuge.

The Ecosystem is focused on educating the world about Centrifuge, creating visibility and opportunity for RWAs, and sharing the narrative of how the world’s credit will be financed through decentralized finance on the blockchain.

The Ecosystem could include third-party service providers and partners that have integrated with Centrifuge on a technical and/or commercial level. It can also include external media organizations that actively collaborate with Centrifuge to share the story of RWAs.

As the worlds of DeFi and TradFi collide, the world’s debt will increasingly be financed on-chain as RWAs through Centrifuge.

The Community

The Community is represented primarily by individuals (and also organizations) that are actively participating in governance, contributing to processes and discourse, and are economically tied to the success of Centrifuge.

Community Members feel a sense of belonging through a shared identity with fellow members and to the mission and vision of the project. They actively participate in public discourse, drive governance and voting, and use their CFG tokens.

Although the Community is typically thought of as individual members, we also view organizations as essential and that include Collators, Validators, Stakers, Holders, Commenters, and Voters.

As Community Members actively engage, govern, and use the CFG token, Centrifuge will continue to thrive.

The Protocol

The Protocol is represented primarily by organizations that are actively using Centrifuge’s technology to facilitate the underwriting, structuring, and financing of RWAs. The Protocol layer unites marketplace dynamics with technical architecture allowing anyone to evaluate, transact, and invest in RWAs.

Users of the Protocol not only use the technology as it is today, but are actively seeking to expand the existing offering by bringing a “builders mentality,” often finding ways to improve the existing products and provide additional services that have to exist within the Protocol layer.

Further, due to the market dynamics and the wide range of users, new business models and third party services will indefinitely emerge in the Protocol. The market surrounding the Protocol will continue to grow and mature.

Users can include DeFi Protocols (such as MakerDAO and AAVE), Pools, Investors, Lawyers, Underwriters, Collateral Agents, Insurance Companies — and that’s just today.

In order for Centrifuge to become the home for financing the world’s debt, it will need to become the most trusted protocol for investors to earn yield in credit.

The Path Forward

The Centrifuge DAO is working together to pull together a long-term strategy that is unique to the protocol and goals that will fit within that strategy and the broader narrative of Centrifuge.

With that in mind, the path forward could look something like this:

• Expand the Ecosystem by bringing to life the Centrifuge narrative to make the mission and vision achievable for any person or organization. This could be measured through metrics such as increasing the TAM (Total Addressable Market) in our Discord and Twitter channels.
• Engage the Centrifuge Community through high quality engagement and participation in voting and on-chain governance. This could be measured by increasing the total number of CFG Holders and the on-chain utility of CFG.
• Decentralize the Protocol by empowering an increasingly diverse group of actors to finance RWAs by providing new and complimentary services to realize safe and successful transactions at scale.

The Centrifuge DAO exists to make Centrifuge as decentralized and valuable as possible. We welcome any and all to join us and add value in any way you can.