Feb 19, 2019

4 min read

Making Forks Fluid

We have constructed this article to outline how the Fluid protocol works, what it provides to Blockchain Directory Access Protocol (BDAP), the dApps created by Duality and third-party developers.

Today (19th Feb 2019 08:40:03) Duality minted 300mm Dynamic (DYN) in block 280411 for use with BDAP. These DYN will be colored and for use with BDAP utilities only and cannot enter or be traded on markets/exchanges.

However, with such a large Fluid protocol transaction occurring, we believe that this a good time to explain and ensure that everyone involved with the project has a full understanding of why the Fluid protocol exists. If there are any remaining questions after you’ve read this article, you can always contact us using the links at bottom of the article.

What does the Fluid protocol do?

The Fluid protocol gives “sovereign” wallet addresses control of blockchain parameters of Dynamic using specific operation codes. Usually, it requires a hard fork to change the consensus rules for a blockchain, which requires users to upgrade software. With the Fluid protocol, static consensus rules change after just two blocks after 3 out of 5 sovereign wallet addresses sign and broadcast a Fluid protocol transaction, without the need for users to update, and without causing network interruption.

Fluid protocol transactions perform the following actions in the current implementation:

  • Generate or mint new coins
  • Change Dynode rewards
  • Change miner rewards

Future upgrades will allow the Fluid protocol to:

To look into how exactly a Fluid protocol transaction is created, please read the fluid-protocol.pdf.

When has Fluid Protocol been used?

The Fluid protocol has been used a total of eight times, the first created Dynamic to fund four Fluid protocol test transactions, which were followed by three real-world use cases; starting Dynode rewards at 1.618DYN, increasing them to 2.018DYN and then the Fluid protocol transaction today.

Here’s the current History of Fluid protocol transactions sorted by date:

* each Fluid protocol transaction can be checked by typing getfluidhistory in the debug console of the Dynamic Qt wallet.

Fuel for BDAP

There is an initial cost in Dynamic (DYN) to register a BDAP entry on the blockchain, which gives it access to the DHT, and a time-period whereby it is valid. Prior to, or after the entry expires, it will need re-registering with further payment in Dynamic (DYN) for continued use. Dynamic (DYN) is directly tied into each dApp and fundamental for fueling its functionality. With companies holding multitudes of entries on databases, moving these entries to the DHT via BDAP comes with a cost, albeit minimal, Dynamic (DYN) is needed for this cost. Creating links with other accounts increases the DHT storage requirements so they also cost DYN to send and receive. We anticipate that dApp developers will purchase application code certificates and side-chain BDAP entries, which allows custom data storage on the public DHT. The registration fees will burn a significant amount of DYN tokens. If the minted tokens are not utilized for BDAP, whether directly by Duality or by third-party developers, then the excess will be burnt using the Fluid protocol periodically.

pShare will allow free tier accounts and Duality will supply the Dynamic needed for the initial user registration and ten links. Once a free tier account is registered, the paid DYN is burned from the supply. Every free tier pShare account we supply Dynamic which will cost Duality approximately 30 DYN per year. We plan to offer paid tier accounts that Duality will use the proceeds from to buy Dynamic (DYN) from the market to set up those accounts and create buy demand. The Fluid protocol funds are only used for promotional free tier accounts to stimulate initial user adoption.

Due to Duality not having access to your personal data or making revenue from advertising; services, solutions, and dApps developed by Duality utilizing BDAP will not be free beyond the limits of the free tier account or commercial use.


The Fluid protocol will help prevent any malicious development that might occur using BDAP, allowing developers to rest assured that their dApps can be deployed in safety. With Fluid protocol Duality can ban BDAP accounts, including their app code certificates, sidechain entries, groups, end-users, and in a future update to Fluid protocol we will be able to zero out their accounts balance. When a BDAP account is banned, the deposit is burned and removed from the supply.

This allows Duality to provide an incubated dApp ecosystem that businesses can trust and will not be populated by rogue or unethical applications.

Want to catch up on what you’ve missed?

Just give https://medium.com/@duality.chain a visit and you can find all our previous blog posts.

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