DNotes 2.0 Delivers Proof of Stake and a Blockchain Integrated CRISP to Stakeholders
The upgrade to DNotes 2.0 will change the method in which new DNotes are generated, from the current power intensive Proof of Work (POW) system used by bitcoin, to the more environmentally friendly Proof of Stake (POS). Replacing the existing POW model (used for the last four years) with a POS model, holds many benefits for DNotes stakeholders. Proof of work created a lot of downward pressure on the price of DNotes, as most of the one million DNotes currently generated every month through mining, were dumped on the market by miners needing to cover the high costs of computer equipment and power bills. The move from POW mining to a system that rewards those with a vested interest in DNotes, will encourage long-term savings of DNotes.
Blockchain Integrated CRISP
The Cryptocurrency Investment Savings Plan (CRISP), was launched in 2014 as a self-directed savings vehicle for DNotes. The enormous potential that early adoption of cryptocurrency could have on things such as retirement savings, employee incentive programs such as profit sharing, and other types of savings plans, was an idea percolating since 2013. It wasn’t until shortly after the launch of DNotes in February, 2014, that it became obvious that DNotes may be one of the few coins that could fulfil this role. When the idea for the CRISP was suggested to the development team in July of 2014, it was with a pilot project that involved a self-directed savings plan for children set up by a parent or guardian, but the original goal was always for its future use as a standard financial product. The success of the project when combined with the secure and easy to use DNotesVault, resulted in DNotes having perhaps the largest per-capita participation of women, children, grandparents, and non-tech users in the cryptocurrency industry.
Along with a proof of stake reward system, DNotes 2.0 will now have the CRISP built into the blockchain. This combination of POS / CRISP will be very beneficial to the individual DNotes stakeholder, giving them a strong reason to save rather than sell. Depending on how many DNotes holders participate in the CRISP, around 850,000 DNotes that could be generated each month, will be awarded to stakeholders based on their share of existing coins.
CRISP / POS Reward structure:
- Staking Reward – New DNotes are generated based on the amount of DNotes in open wallets running a node, equal to 2% of the existing coin supply. See deferred / cold staking.
- Monthly CRISP reward for DNotes balances held for 30 days – 2% per year, compounded monthly
- Annual CRISP reward for DNotes balances held for 365 days – 4% per year
- If you participate in all staking options, your annual reward could be around 8%.
Automatic Account Rollover to POS at DNotes Vault
In an unrelenting pursuit to make DNotes accessible to everyone, account holders at DNotesVault will have everything automatically taken care of in the switch to proof of stake. Many of the long term stakeholders are from outside of the cryptocurrency industry, often without a strong tech background, and DNotes is their only holding. Great care was taken to ensure these stakeholders would be taken care of. The transfer to POS for vault account holders is so seamless and so user-friendly, they may not even know anything has happened until the POS rewards start compounding their balance of DNotes.
Deferred / Cold Staking
The deferred staking process will allow users to stake multiple offline wallets from a single wallet, by deferring staking rights to a designated hot wallet. This will allow all users, including those at DNotes Vault to participate in staking knowing their coins are safe and secure. Staking normally requires your coins to be in an online wallet in order to receive the reward. This would mean all your DNotes would have to be in an open (hot) wallet in order to receive the extra 2% reward. With deferred or cold staking, all DNotes can be securely stored offline with the staking privledges going to (deferred to) a different wallet. More details on launch…
Details on launch.
A decentralized means for voting on upgrades and changes to DNotes blockchain that will enable all stakeholders to participate in the direction of DNotes.
Frequently Asked Questions
DNotes 2.0 - Benefits for Stakeholders
Q – What does DNotes 2.0 mean for present holders?
A – There are numerous benefits that 2.0 has to offer, including:
- It is a significant technology upgrade
- The switch from Proof of Work (POW) to Proof of Stake (POS) will reduce the number of DNotes dumped on the market by miners needing to cover the high costs of computer equipment and power bills.
- The CRISP will now be integrated in the blockchain, with very generous rewards when held for the required length of time.
- See more benefits and details at: DNotes 2.0 Delivers Proof of Stake and a Blockchain Integrated CRISP to Stakeholders
Proof of Stake
Q – How will POS wallets ensure network security?
A – Understandable, there has been a lot of debate about PoS and PoW, which is better and the vulnerabilities of each. Both PoW and PoS the ability to be compromised, but they all require bad actors to dedicate an enormous amount of resources to not only attack the network but also sustain that attack, amidst working against the entirety of the network and those responding to the problem. What I can tell you is the security of the blockchain is among our highest priority. This is in part where DNotes model comes into play, not many players in the industry can dedicate resources to not only the security of the blockchain but also setting up systems, early detection, trigger warnings, watchdogs if you will, etc…
Q – Will there be Masternodes later?
A – DNotes will not have masternodes at the initial launch. However, we want to keep that option on the table.
Our focus right now is to ensure that everyone is able to participate in our programs and rewarded on a equal playing ground as much as possible. However, we do plan to have additions to the capability of the network, which would likely require a technology such as a master node. As we progress towards those goals, we will absolutely consider master nodes technology, but I cannot say at this time as we take it very seriously and want to ensure our upgrades are out of necessity and a need for the functionality. I cannot provide a direct answer to your question and I do not want to lead you down the wrong path in the event we don’t adopt a master node like system.
Q – From what I read earlier, there will be no master nodes?
A – Correct, initially, but that doesn’t mean we won’t ever have a master node or master node like concept to perform other functions.
Deferred or Cold Staking
Q – With the deferred/cold staking, could it be possible to do this from a mobile device?
A – It’s possible, just may not be practical.
CRISP 2.0 - Blockchain Integration
Q – How much is the CRISP Reward?
A – The CRISP / POS Reward structure is as follows:
Staking Reward – New DNotes are generated based on the amount of DNotes in open wallets running a node, equal to 2% of the existing coin supply. See deferred / cold staking.
Monthly CRISP reward for DNotes balances held for 30 days – 2% per year, compounded monthly
Annual CRISP reward for DNotes balances held for 365 days – 4% per year
If you participate in all staking options, your annual reward could be around 8%.
Q – Can we use our CRISP to stake with?
A – The same coins will be available for staking as well as CRISP rewards simultaneously. There may be some guidelines to follow to do this properly, and consequently a compounded long term scaling issue to address, but the short answer is yes. We are working to make it as seamless and the least technologically burdensome process possible given the requirements.
Q – What are the terms for CRISP or penalties for withdrawing from CRISP?
A – No penalties to speak of. If the coins are in the wallet, and have remained in the wallet for the required amount of time, you will receive the appropriate reward. 30 day and 365 day periods.
Q – How long do you have to hold DNotes to get the staking reward of 2% per year?
A – To get 2%, on average, you would have to be staking your coins for the entire year, that is if everyone is staking all of the coins. It doesn’t matter how long you have had them prior to the point where you started staking. Let me clarify how that works. 2% is the target for the whole network. A target of 2% of total coins will be released as staking reward every year.
Q – But what happens when not all of the coins on the network are being staked?
A – The reward for the network as a whole doesn’t change, but the reward percentage for the individual staker will. If only half the coins on the network are being staked, then you may receive closer to 4%.
Q -Will the staked coins have a compounding effect?
A – Absolutely, the coins that you are staking with will be increased every time you win the staking reward for a block, and give you more coins to stake with (confirmed within 60 blocks).
Q – What is the difference between the staking reward of 2% and the CRISP reward of 2%?
A – The CRISP reward is automatic and does not require you to be actively running a node that is actively staking your coins. And they must be older than 30 days, held in the same wallet.
Q – Do you feel this percentage is enough incentive for people to stake and secure the network?
A – Yes! Especially when considering the less people that participate in staking, the higher the yield for the user.
Coin Supply & Cap
Q – Why is the coin supply not capped anymore? Will that hurt the value of the coin?
A – There are several points that will address both questions:
- The annual incoming supply is capped at a maximum of 8%.
- As a proof of stake currency, you will always maintain your percentage ownership of the outstanding supply of DNotes.
- The total potential staking reward is similar to the average historical return in the stock market – 7%.
- By paying a staking reward out forever, even when DNotes reaches a point of relative price stability, it still allows everyone to get a fairly stable return on their investment over the years. It also means it will never be too late to start buying DNotes.
- If we cap it there will be a time, generations from now, we will not have the DNotes to support this program. Consequently, the reward program will end or corrected with a new fork, which can be challenging as we have seen with Bitcoin.
- This model is pro-savings and pro-stakeholders’ interest verses getting rich over-night. It is consistent with out long-term push for DNotes to gain mass acceptance. Most importantly, it will work just as well today, as it will 500 years from now.
Q – How will POS wallets ensure network security?
A – There has been a lot of debate about PoS and PoW, which is better and the vulnerabilities of each. Both PoW and PoS have the ability to be compromised, but they all require bad actors to dedicate an enormous amount of resources to not only attack the network but also sustain that attack, amidst working against the entirety of the network and those responding to the problem. What I can tell you is the security of the blockchain is among our highest priority. This is in part where DNotes model comes into play, not many players in the industry can dedicate resources to not only the security of the blockchain but also setting up systems, early detection, trigger warnings, watchdogs if you will, etc…
Q – Where can I find more information on DNotes Global?
A – Check out the following articles and videos:
Q – Where is DNotes Global registered?
A – DNotes Global was incorporated in the state of Delaware in 2016. The File Number is 6005128.
Q – Does DNotes have any partnerships that will be beneficial to its holders?
A – The following partnerships have been announced so far:
DNotes Global, Inc. Announces Partnership With Geneca for Blockchain Technology Development
Q – Is there a road map?
A – Yes, you can find it here: http://dnotescoin.com/dnotes-roadmap/
Q – Where is the whitepaper?
A – …Soon to be released.
The DNotes Team
Q – Who are the developers?
A – You can find our team here:
DNotes & DNotes 2.0 Swap (Conversion)
Q – How I can get Dnote 2.0’s if I buy Dnote 1.0’s on an exchange?
A – The easiest way is to deposit your DNotes to DNotesVault.com. When the swap occurs all DNotesVault balances will be automatically swapped to DNotes 2.0, and we are working to ensure this process is done quickly. You will not likely be able to keep them on an exchange, unless they are willing to participate in the swap process, and swap user balances. If you run your own DNotes wallet, we will have a process for sending in your DNotes to a provided address, and you will receive DNotes 2.0 after a given period of time.
DNotes Foundation & Ecosystem
Q – What specifically do you mean by “laying the foundation for DNotes”?
Q – Is there any actual development in the ecosystem?
A – The information below will address both questions:
- DNotes is building the all the necessary foundational components of its ecosystem, so it is capable of rapid scaling when required. If you aren’t prepared to scale, you can end up with problems such as the ones faced by the exchanges right now. An onslaught of new customers and demand, resulted in customer service response delays (sometimes for 3 or 4 weeks), various backlogs, withdrawal issues, disabling new user registrations, etc.
- While we have had minor changes, block reward changes, bug fixes, and upgrades to the existing DNotes blockchain, this does not represent 3+ years of cryptocurrency programming. We have taken a cautious approach to cryptocurrency programming and carefully planning our next moves when it comes to upgrades, and in this case an entirely new version of DNotes, which we didn’t decide upon until 2016. Also, we needed to ensure we have the right people in place to make that happen. A tremendous amount of effort and time has gone into finding / working with / investing time and money / narrowing down.
- As the industry continues to grow, we need to fully understand what is happening, what challenges the industry is facing, what do users of cryptocurrency need and want, and what all of the other cryptocurrencies are doing. This is the research that ultimately led us to developing the next version of DNotes and many of our projects that we have either launched or working on.
The DNotes vision is much more than just a cryptocurrency technology. During that time, we have also created entities to help DNotes and DNotes Global Inc achieve their goals.
- The DNotesVault (2014), which fundamentally addresses the technological issues involved in owning cryptocurrency, without compromising security. This is a novel system for storing DNotes and I’m positive it’s an industry first in many aspects. http://dnotesvault.com/
- CRISP (2014), which DNotesVault was a fundamental platform for, as an outreach program and savings program. I’m certain this is an industry first in many aspects as well.
- CryptoMoms (2014), our initial project to help bridge the gender gap, but also represents a much larger initiative to make cryptocurrency as inclusive as possible. The vision for what CryptoMoms evolves and is rolled into has not been yet implemented. http://cryptomoms.com
- The Four Pillars of Business Success (2016) – 1). The book – which the rights have been gifted DNotes Global Inc and as a result to the success of DNotes, and 2). The corresponding membership site – This will be a critical component in reaching out to business owners, NextGen VC, and the DNotes outreach program. https://fourpillarsofbusinesssuccess.com/
- DCEBrief (2015), which is our industry news, industry outreach, and media platform associated with the DNotes brand and ultimately will work it’s way the DNotes Global Inc network as a for profit entity. https://dcebrief.com/
- DNotes is an industry leader in many ways that may not be quantified by how many upgrades we have made to the cryptocurrency itself. With some careful planning and execution, DNotes will be seen as a leader from the technology standpoint as well. Since we started working on DNotes 2.0 in 2016 planning and designing, and officially announced it May of 2017 with the starting of this thread, it has been one of our primary focuses. We’ve had many bumps in the road and delays, but we are not going to focus on those, we are going to keep our focus on the goal of moving DNotes forward.
- All DNotes properties and projects to date have been self-funded by the founders, other members of the DNotes team, and some very generous stakeholders. The community has never been asked for financial contributions of any kind.
- All development is done with the best interest of DNotes and its stakeholders in mind, and therefore many details will remain under wraps until launch.
- There are other projects that are currently in the planning and development phase, that will be revealed at the appropriate time.