Abstract: Frequency regulation (FR) plays an important role in maintaining the power balance and stability of power systems. How to fairly and reasonably compensate generators and actively stimulate generators in the frequency regulation ancillary service market is an urgent problem to be solved by power market reforms. In this paper, a blockchain community thinking with decentralization, multi-party consensus and token incentive was proposed. Based on the token incentive feature, an FR credit was designed to integrate the global FR effect and individual participation performance, and then a frequency response model of the distributed FR system with decentralized features was established. Furthermore, the settlement process of the FR credit was designed by using multiparty consensus thinking, which can motivate generators to participate in FR and ensure the authenticity and reliability of the results. Case study verifies the effectiveness of the distributed FR system, which can effectively complete the system FR tasks and credit settlements, and fully mobilize the FR generators to enhance the efficiency of distributed FR resources.