I'm working on DNotes material and getting a little bug-eyed searching for details.


Regarding the staking rewards:

I can't remember whose post this was, but need clarification on a couple of points:


The rate of growth is actually capped, based on the issuance of new DNotes for payment of staking reward (2% per year)

monthly CRISP reward (1.66% every 30 days or 2% per year) +

annual CRISP reward (4% every 365 days.)

The annual total is approximately 8%.

That is the annual growth rate and in proportion to your ownership of DNotes, if you participate in full.


1). How long do you have to hold DNotes to get the staking reward of 2% per year?

2). What is the difference between the staking reward of 2% and the CRISP reward of 2%?

3). Are there any other specific details I need to include, such as minimum stake on any of these rewards, etc???


p.s.  I think I'll change the 1.66% every 30 days to .166% every 30 days. 

"This 2% is based on coins in existence?  So, approximately 131,300,000 (today) x .02 = 2,626,000 per year/total reward?  Which is also the total inflation (plus CRISP rewards)?"
Roughly speaking, yes. For inflation, yes, and would need to include CRISP.


"From what I understand, this is a little less than what miners are getting right now?  (Not necessarily a bad thing)"
Correct, miners receive about 1,000,000 a month now. With 130,000,000 in distribution, the maximum reward, with everyone participating in every program to the fullest, it would be a bit less at around 900,000 initially.


"Do you feel this percentage is enough incentive for people to stake and secure the network?" & "I've read other coins are up to 10%.  Different inflation model, but just curious your thoughts."
Yes! Especially when considering the less people that participate in staking, the higher the yield for the user.


"From what I read earlier, there will be no master nodes? "
Correct, initially, but that doesn't mean we won't ever have a master node or master node like concept to perform other functions.


"With the deferred/cold staking, could it be possible to do this from a mobile device?"
Not sure I understand the question correctly, but it's all possible, just may not be practical.


"Can we use our CRISP to stake with? "
The same coins will be available for staking as well as CRISP 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.


"What are the terms for CRISP or penalties for withdraw from CRISP?"
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.

Yes, mobile devices would certainly be capable of storing the blockchain and running a staking full node. There are certain considerations we will have to look into to create a high efficiency and light weight version for mobile devices.

One of the many problems I see with regulators and anyone they listen to, is a huge lack of subject knowledge resulting in an inability to distinguish between cryptocurrency and ICOs (among other things). They make a broad based statement on cryptocurrency, when the 'wrongdoing' they are talking about is ICO specific. The report (linked in the article) covers warnings made by the SEC and the CFTC. The warnings start out quite ICO specific and also target the "Blockchains-R-Us" companies that have done nothing but attach blockchain to their name (or some similar action), but then it appears they think cryptocurrency functions the same way.


Bad Advice and Blockchain-R-US: Stern Warnings from the SEC and CFTC Chairmen on Unregistered ICOs, Cashing In on “Crypto-Mania” - https://www.jdsupra.com/legalnews/bad-advice-and-blockchain-r-us-stern-30337/

The article’s comments on the recent surge in Bitcoin’s price indicate a greater confidence from both regulators that
the public is treating Bitcoin as an investment and that stronger investor protections should be seriously considered.
The authors noted that:

• The largest cryptocurrency exchanges are offshore, unregulated by SEC/CFTC
• Cryptocurrencies lack “governance standards, accountability, and oversight”
• The pretense of Bitcoin as a payment vehicle has dissolved, and
• Bitcoin and other cryptocurrencies are now viewed as “investor assets”

Clayton and Giancarlo concluded that investor expectations are clear – the public purchases Bitcoin and other
cryptocurrencies seeking a profit. This is important because an expectation of profit is one key factor of the Howey
test, used by the SEC to identify securities under its jurisdiction.10 This Op-Ed makes clear that both these
Chairmen (and their respective Commissions) believe they have the legal authority and mandate to pursue more
protections for consumers in the cryptocurrency market. As such, market participants should expect continued
enforcement activity and scrutiny from both the SEC and CFTC.


The problem with trying to link the Howey test to cryptocurrency is, unless the development team sold the coins directly to the investor, half of the Howey Test criteria is missing.

1.It is an investment of money

2.There is an expectation of profits from the investment

3. The investment of money is in a common enterprise  

"Most federal courts define a common enterprise as one that is horizontal, meaning that investors pool their money or assets together to invest in a project." - This fits the ICO funding model only.

4. Any profit comes from the efforts of a promoter or third party - This is one that really distinguishes cyptocurrency from ICO's.

"The final factor of the Howey Test concerns whether any profit that comes from the investment is largely or wholly outside of the investor's control. If so, then the investment might be a security. If, however, the investor's own actions largely dictate whether an investment will be profitable, then that investment is probably not a security."
http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html

With an ICO, large sums of money are handed over to a business/project and the token holder has no say or role to play in building the business.

Cryptocurrency couldn't be further from this. Honest cryptocurrencies are built by the communities that believe they will be making a difference in the world. There are so many community members and people behind the scenes that have contributed to projects like DNotes, the investors absolutely have a role in its success.

As far as the expectation of profit goes... Of course we would like to profit, because we worked for it.  

Welcome to DNotes, The Chezzz. That must have been quite an experience. It reminded me of my first few weeks of research towards the end of 2013. At one point I was about to take a pass. Good thing I approached it a little differently. "If it is important enough and you don't like it - change it." That should explain why DNotes is built so differently. We are beginning to gain some serious respect. Thanks for your support and confidence in us.

Yes, certainly. One of our core missions is to provide the facilities and platform for DNotes stakeholders to conveniently use DNotes as a form of payment at nearly zero cost. We also want to help build an environment where a large percentage of the payments will be between two parties without the participation of a third party. DNotes ecosystem will always be there as the alternative when needed, and charges a reasonable fees.

Agreed, thank you Denver Dan and Chase! Those are great questions in helping to clarify, not only for you, but also everyone else reading along.

https://cointelegraph.com/news/is-bitcoins-reign-as-king-of-cryptocurrency-in-danger

This article is showing us all that the door is opening for a new way to do business. Dnotes is coming. Don't let this opportunity pass you by.

Thank you for sharing the link. There are certainly opportunities for DNotes to excel where Bitcoin has been failing. We have been positioning DNotes, since day one, to identify all the potential pitfalls that our industry must overcome before mass acceptance of digital currency in global commerce can become a reality.

It takes a lot of patience and demanding work to do the right thing at the right time. We are getting a lot closer to be a significant player in our industry. Once we started gaining sustained momentum - our unique vision, business model, and strategic executions will become more obvious and easier to understand.

DNotes is firmly committed to building a trusted brand, an inclusiveness for everyone, purposeful missions in each of our expanding ecosystem, a unified culture to accomplish common goals, and a best in class mindset in leadership, technology, and everything that we pledged to support.

However, we are mindful that Bitcoin is well entrenched with great name recognition. Bitcoin will be around for a long time. DNotes’ mid-term goal is to supplement Bitcoin short-falls, as well as that of fiat currencies. That itself is a gigantic undertaking. It will take us years to get there.

Thank you, Daniel, for another thought provoking article. We have never experienced any technology revolution that is such far-reaching and disruptive as Bitcoin and the underpinning blockchain technologies. Admittedly, it is also significantly more complex for most people to understand without devoting a great deal of time to research and think through it.

Any country that can appreciate the immense potential and proceed to create the most favorable regulatory environment to help the industry to flourish will quickly enjoy great economic growth. This is a generational opportunity. For that reason, I hope that we “don't throw the baby out with the bathwater.”