# DAFI Protocol

## What is the DAFI protocol

DAFI is building an entirely new incentive model for every protocol & application. Today, everything decentralized relies on inflation, an example is miners earning Bitcoin in return for maintaining the Blockchain.

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Incentives are the core DNA of everything decentralized - without it nothing can truly scale.
{% endhint %}

DAFI creates limitless applications with reduced inflation, by replacing simple token rewards with dTokens. As a network grows in demand, dTokens distributed to users can increase in quantity. Essentially, DAFI converts demand volatility into user rewards.

This enables you to truly become a part of the economies you love.

{% tabs %}
{% tab title="Applications" %}

```
Staking rewards
Social & community incentives
Gaming
Next-gen Liquidity programs
Prediction-markets
```

{% endtab %}
{% endtabs %}


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