Navigating the Future

March 7, 2024

The Evolution of the Divi Ecosystem


Blockchains are the most democratic mechanism for coordinating the state of a ledger across a broad network of computers. It is by consensus that the state is managed, maintained, and updated. This distributed consensus similarly dictates the network effects of a blockchain. Underpinning this consensus of machines is an ecosystem of applications run by actual human beings. While the devices may hum along, unopinionated about the software running on their hardware, humans hold varied opinions, ambitions, desires, and needs that must be met. This dichotomy makes for a uniquely challenging dynamic. Hence, DAOs resolve to mitigate human nature so that machines can carry out their work undeterred by the trifles of man and instead dictated by the laws of code and only ever bending to the will of consensus.

The Divi ecosystem is poised for an update through consensus. This discussion unfolds in three segments: reflecting on our journey toward decentralization, clarifying misconceptions about our project's structure, and a vision for future consensus-driven updates.

Our journey

My co-founder, Geoff, and I started the Divi Project alongside several others, intending (like many) to bring crypto to the masses. Our mission was to enhance usability and access, and we've welcomed an unprecedented number of newcomers into our fold. We've secured patents and overcome funding challenges to sustain our project over seven years—a testament to our longevity in the crypto space.

We have also always intended to adhere closely to the tenets upon which crypto and blockchain are built. Decentralization is the critical element. We didn’t pre-mine when we launched $DIVI. We established a mechanism whereby the Treasury earned rewards via the consensus mechanism built into the blockchain. An instrument that, in a very genuine sense, only works due to the community built around it. We’ll discuss this concept more later.

The path has been fraught with challenges, from betrayals to financial risks, yet our resilience has kept us standing, celebrating successes amidst adversity.

In 2019, we expanded our vision with Qbito (later Divi Labs). This move, however, inadvertently blurred the lines between our for-profit and non-profit endeavors, highlighting the need for clearer communication.

Reflecting on the past

Many projects face similar challenges, and DigiByte's journey resonates with the Divi Project's experience, reflecting our own path.

DigiByte was launched by a founder who held staunchly the values and philosophies foundational to the cryptocurrency and blockchain ethos. They were fair-launched with no pre-mine, built a community, established a strong and distributed network, and even enabled some groundbreaking (at the time) use cases for their blockchain.

Despite its pioneering achievements, DigiByte confronted financial challenges that strained its treasury, threatening the project's sustainability. However, its community's unwavering support and resilience underscored the project's enduring significance. 

This narrative of perseverance in the face of adversity resonates deeply with the Divi Project, inspiring a reflection on our journey and a recommitment to our foundational values. As we look to the future, the lessons from DigiByte’s story reinforce the importance of community solidarity and the transformative potential of staying true to our principles.

Treasury and DAO

The Divi blockchain introduced the Treasury Block, a novel feature allocating funds for essential infrastructure independent of any single founder. We aim to enhance this mechanism, fostering greater community involvement in ecosystem development through DAO governance.


Currently, this Super Block pays the Treasury address 17% of the yearly block rewards. Due to the price of $DIVI, this amount is entirely consumed by maintaining critical infrastructure.

It’s important to note that the Treasury Block would not exist without community participation. The Super Block is minted thanks to Divi’s thriving network of nodes performing work and reaching a consensus.  

Common misconceptions

1. Divi Labs and Divi Foundation: The distinction between these entities has been muddled. While Divi Labs has supported the Foundation and the broader blockchain community, clarifying their separate roles and contributions is crucial.

Divi Labs initially aimed to develop solutions solely for the Divi Foundation but eventually expanded to support other blockchains and offer services beyond a single ecosystem. However, for years, Labs subsidized the Foundation by supplying Staking Vault hosting technology at a loss, paying for market-making services, and sharing development resources. As CEO, my primary focus has been transitioning Labs to a revenue-neutral state so that it can continue supporting the Divi Foundation without hurting itself.

While Divi Labs is still the most well-known contributor to Divi’s technical development, several other projects have spawned and are thriving on their own. 

BoxWallet simplifies node maintenance for manual validators. Chaos Cube is an NFT project that uses $DIVI on Ethereum. Divi DeFi builds bridges and a yield platform for $DIVI. Lightning Works creates comics and NFTs for $DIVI. DiviGo is a WhatsApp wallet for $DIVI. Games Interactive develops web3 games for $DIVI. Divi Desktop is a separate team from Divi Labs. Other exclusive projects may be under development as well.

2. Founders' Intentions: Geoff and I have invested deeply in Divi, foregoing personal gains for the project's growth. Our dedication is to the community and the project's success. We have dedicated ourselves to building use cases and supporting the project with all our efforts. We have voluntarily chosen to not receive any financial benefit from the for-profit organization on several occasions, while still investing as much capital as we could to further the mission. As previously stated, the entirety of the Treasury is used solely for maintaining critical infrastructure and resources. We do not receive any block subsidies outside the nodes we operate, which we purchased of our own accord. We are in the same position as any other community member, with no additional benefits.

3. Leadership Structure: The Divi Project lacks a CEO; it thrives on collective governance and decentralized leadership, embodying the spirit of blockchain.

There is a company called Divi Labs, of which I am the CEO. While I founded the “Project,” I have illustrated throughout this post that I am far from the primary driver of its direction.

As the ecosystem grows, so too does the underlying and inherent decentralization. The more decentralized the project, the less control a single actor has over its direction. Therein lies the importance of DAO governance. This natural progression is by design. 

As a project, we are at the point where this form of management is not just a good idea but a necessary one. The above-mentioned leads me to the final part of this message: the future.

Toward decentralized governance

Decentralized governance embodies our ethos, promising a democratic and efficient way to manage our distributed network. Inspired by successful DAO models, we aim to refine our governance structure, enhancing community involvement and project sustainability.

My role moving forward

As the project evolves, my role transitions from central figurehead to supportive participant. This shift underscores our progress toward genuine decentralization, allowing new leaders and initiatives to emerge.

Technological advancements

Emerging technologies, like Side Chains, promise to propel Divi forward, emphasizing my commitment to supporting innovation within our ecosystem.

The development of "Side Chain" technology by an external collaborator holds promise as a pivotal narrative driving $DIVI and our Project into the future. My role is to offer unwavering support, marking the extent of my involvement with this initiative. Essentially, Side Chains represent the inaugural "fork" within our ecosystem, symbolizing innovation and expanding our project's boundaries.

Final thoughts

Our collective goal remains a thriving future for Divi. It's time for the community to lead, building on our foundational work to drive the project into a new era. My dedication, alongside Geoff's, to Divi's vision remains unwavering, but we now entrust its future to the community's capable hands. I will remain as CEO of Divi Labs, where my focus is most valuable. 

Further communications directly from the Foundation will follow this post in the coming weeks to highlight the key partners and builders throughout the Divi ecosystem. We will also plan a Twitter Space to address any additional questions.

You can find the next article here What is the Divi Foundation