Topic: [ANN][KMD][dPoW] Komodo - An Open, Composable Smart Chain Platform, Secured by B - page 818. (Read 1192347 times)

By administering they mean conversion and facilitation. A notary node is not facilitating conversion of value as a product or a transaction resulting in Fiat. The Notary Node provides a service to which payment is rendered and that is income. This is taxable. But as long as you don't convert into Fiat or Products or other Services there has been no Profit. If you trade KMD for a Car you now have to show a Profit as the Car's worth. If you traded KMD for BitCoin you still have not made a profit. If you buy a physical item with that BitCoin you now have a profit. If you cash it out to pay your electricity, you now have a write off for electricity of running a node and costs of ISP and equipment etc. and the rest is profit.  I don't have to be a lawyer to know this, it is pretty obvious.

quickly reading the PDF:

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"A user who obtains convertible virtual currency and uses it to purchase real or virtual goods or services is not an MSB under FinCEN’s regulations"

"an administrator or exchanger is an MSB under FinCEN’s regulations, specifically, a money transmitter, unless a limitation to or exemption from the definition applies to the person."

"An administrator is a person engaged as a business in issuing (putting into circulation) a virtual currency, and who has the authority to redeem (to withdraw from circulation) such virtual currency"
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I am not a lawyer(!) but my  understanding of this is that a notary node (or anybody that is mining) is putting into circulation a virtual currency but there is no redeem powers as the KMD that is mined cannot be destroyed. Clever lawyers might try to argue that anybody can burn by sending to a null pubkey, but it is not actually destroyed, just very unlikely to be able to be spent. Also, any such "authority" would be something all users would have and as such is not fitting the context of an administrator. After all, how can everybody be an administrator?

It would be nice if someone with legal experience in this can confirm that mining crypto does not make an administrator. It seems to apply more to gateways.

In more good news the DEX I think fits into the end user category as each DEX swap is an end user paying crypto in exchange for crypto.

From what I can tell, it is the providing of services to third parties that is what is being regulated. Direct peer to peer commerce does not seem to be covered by this, but again this is not any legal opinion, just my reading of the PDF above

The definition of a " Money Transmitting Business " is a subset of a Money Services Business  which Wikipedia defines as

An MSB has specific meanings in different jurisdictions, but generally includes any business that transmits money or representatives of money, provides foreign currency exchange such as Bureau de changes, or cashes cheques or other money related instruments. It is often used in the context of Anti Money Laundering (AML) legislation and rules.[1][2]


The beauty ( and bane)  of cryptocurrency is that the IRS and several other cases have ruled crypto as Property and not money.   I'm no lawyer but if its consider property then nodes are not considered money transmitting businesses and do not need FINCEN registration.   If you are concerned, it would be best to check with a business lawyer  preferably one that deals with cryptocurrency.


Regarding Mining/Staking and similar:

I can't speak for everywhere but the IRS guidance for cryptocurrency mining is that it is considered income. 

@KomodoPlatform

Since it has become a little complicated, it could be useful to have an online calculator that says how many KMD you get if the Ico will meet such and such conditions and if you're either a Bitcoin investor or a Bitcoindark swapper. I think it would also help marketing 

Every mining rig or coin staking (in PoS) received money. In a similar fashion  a notary node received KMD from each block generated.

I doubt there would be any more regulatory roadblocks as there would when running an ordinary mining operation, but I'm not a lawyer either.

Is there a chance running a notary node (and receiving KMD fees) might be considered a money transmitting business under FINCEN guidelines? My opinion is no, but I'm not a lawyer.

https://www.fincen.gov/sites/default/files/shared/FIN-2013-G001.pdf

4 days again ICO will be start,,Hurraayyy

Will there be wallets for Mac too? 

correct

and REVS can even be distributed independently of KMD, but since REVS will use KMD dPoW, it will need to wait until after KMD mainnet is live

Thanks James, that makes sense. I intend to keep staking my btcd as long as possible, but I was forgetting that the redeem/vote snapshot for the REV share can still happen right after the ico is completed. No need to send coins anywhere, just use snapshot balances.

The voting has to happen after the ICO is completed.
BTCD redeem has to happen after the ICO is completed.

So it is a matter to combine BTCD redeem + voting, as the ICO redeem + voting is being done.

When there is enough votes to know the notary nodes, we start mainnet and the notaries and then distribute coins

Some details subject to change, but the above gets everybody in the same timeframe, which is what is most important with ICO coins. The actual distribution will be done with normal transactions in batches, so some will get their KMD several blocks ahead of others, but it should all happen within a few hours or less

From investment perspective it doesn't matter when you swap. Even if you are staking more BTCD you will still be receiving the same amount of KMD, as the BTCD/KMD exchange rate will decrease at the same rate you could stake your BTCDs. If we would allow people to stake their BTCD for one year and then swap with the original exchange rate we would run out of KMD.

From SuperNET Slack #general:

jpr
how will the coins be distributed after ICO? Sent to wallets?

jl777
yes

jpr
and will there be wallets for linux with gui from the beginning?

jl777
wallets for unix are already working in testnet. GUI is not yet, but I expect that we will get them this month

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Join SuperNET Slack so you don't miss anything! We have #komodo channel there

Hopefully a way can be found to let BTCD holders still vote even if they keep staking and don't redeem before the election.

The current plan for the first election is that the voting would happen when people redeem their KMD, or some short of other temporary procedure. For the later elections we must develop a better system, and about that we currently have no info. jl777 is thinking the best way to implement it.

For the first election it is possible that we don't even get 64 candidates, so there's a change there won't really be any meaningful elections. We will see.

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Yes, they are taken into account when calculating the average bonus, i.e. BTCD bonus.

The investments per bonus tier will be made public. Currently we have raised 300 BTC (+300 BTC more is promised) by angel investors.

If someone missed the announcement, here it is:

Africa is in the SH Southern Hemisphere region

we are not using strictly literal interpretations, so all of Africa will be considered SH, along with South America, Australia

The stakeholders are going to vote for the Notary, but how is it's going to take place and when?

Hi,

I was wondering if the pre-ICO bonuses (30% and 35%) will also be taken into account to compute the average bonus:


Also, I assume there will be some kind of public records concerning the amounts invested and their bonuses.

Thank you.

There is a BTCD snapshot for the revenue asset, so you should hold your BTCD's in a local wallet. For downloads and instructions (the guide) visit the bitcoindark.com website.

After the snapshot the BTCD <-> KMD swap begins, and it will last one full year. During that time you can swap your BTCD's to KMD. More info about how this is done will be published later.

In summary:
BTCD holders: send your BTCD to a local wallet before the ICO ends!
BTC investors: invest your BTC during the ICO. We will have an ICO site with instructions, it will be announced little later. The link can be found from komodoplatfrom.com website on October 15th (when the timer runs out).

For more info BTCD holders can read this Steemit post


Yes, it's for those who wish to run a notary node.

On October 15th a link will appear on the komodoplatform.com website, and that will take you to our ICO site.


Hello!

You can pick "Southern Hemisphere". We hope we can get you onboard! It would be nice to have some nodes in Africa.

I was about registering  on the election page then I can't found Africa region on the list, I am an African so I decided to withdraw myself from this project