Announcing Theodoric-II: Dchain's Testnet 2

Belsy Yuen, PhD
CTO
October 14, 2025

Excited to announce DChain's Theodoric-II testnet launching this month! 🚀

DChain is purpose-built infrastructure for capital markets. With Ripple and Circle recently launching credential-based chains for institutional finance, we're seeing the industry converge on what our Testnet-I tested - integrating Self-Sovereign Identity directly into consensus as the foundation for compliant blockchain infrastructure.

What's new in Theodoric-II:

Asset Notarisation: eIDAS 2.0 advanced electronic signatures creating legally binding, machine-verifiable links between real-world assets and their onchain representations - solving a fundamental challenge of verifiability and offchain dependency.

Complete Onchain Securitisation Workflows: Testing end-to-end processes from origination through issuance to servicing, with cryptographic auditability and programmable compliance at every step.

Enhanced DPoS: Validators need both staked tokens for voting power AND valid SSI credentials - creating accountable validators with economic and reputational skin in the game.

Incentives-Aligned Tokenomics: Our token model introduces deflationary burning through protocol fees on securitised assets' value, not transaction. This means costs to applications are predictable and tied to economic activity, not volatile gas fees or transaction spam

Smart Accounts: DChain supports compliance with self-custody. Seamless key management with recovery and embedded verifiable credentials. Automation-ready with user-controlled plug-ins.

Credential-Gated Governance: Opt-in DAO participation where voting rights require appropriate credentials, creating legally defensible governance structures across jurisdictions.

We're demonstrating how SSI enables the entire stack - from accountable validators and compliant onchain securitisation to seamless user experience and governance.

Testnet participation details coming soon.

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