UTXO

DeFiChain uses the unspent transaction (tx) output model, or UTXO. There are two types of DFI, UTXO and token. UTXO DFI can be spent (sent to another wallet) through the blockchain; it is a user's available balance. The other form of DFI, token DFI, is received in liquidity mining. Because in every block, which occurs approximately every 30 seconds, rewards are distributed to liquidity providers, creating tons of UTXO transactions would be inefficient, spamming the blockchain with transactions, and raising the cost of a transaction that would make it unprofitable to liquidity mine. So, rewards are instead distributed by token, which does not include a transaction fee. Token DFI must be converted to UTXO DFI before it is possible to send any DFI.