I have just recently started collecting Dnotes with the intention of keeping them long term. It's only been a couple of months since I started to stockpile note. I find the idea of encouraging people to see their Dnotes as a long term investment interesting. It seems to me that other cryptocurrencies have less direction and a lot of people are just trying to cash in which is increasing their volatility. I see the recent drop in Bitcoin value as one indication of that. But I have become concerned that the developers are relying too heavily on the community. By that I mean that the more Dnotes are held by long term investors the more stable they appear to be, but there is still potentially the risk of people dumping their coins when the value increases sufficiently.
I don't mean to sound skeptical, I was just wondering what other firm plans do the devs have to get Dnotes into the mainstream as a useable currency that can allow for everyday transactions through online stores/vendors/other payment systems? I think that being able to use Dnotes in the same way as current payment methods for transferring fiat currency is going to be a very important part of building a platform that people can trust.
Hi DsoldD,
It's nice to hear from you. This is an excerpt of a conversation from Dec. 21, which may help a bit:
posted by minerpage:
Still, every long term coin strategy needs an economic model to survive the initial excitement. I've seen many coins do well until the highly anticipated spike and the following selloff... at which point the coin is practically dead in the water... speculation can be good to get a market position, but needs to be sustained with economic activities (buying and selling goods with the coin) so I would think a payment gateway is pretty essential early in the game... the sooner the better... am looking for that model with this coin
posted by keemo:
Agreed about the need for an economic model. However, prior to that a largely, diversified critical mass of owners is needed. The composition of this owner base is critical to prevent liquidation of large amounts of DNotes. I see they are addressing this issue on a sustained basis and painstakingly. This leads to an upward sloping curve (due to value addition by adding number of properties like cryptomoms, dnotesvault etc) while preventing a collapse. Payment gateway is not a technology solution but a social/business/economic solution that will work only with a currency that has shown price stability with an upward drift and low volatility. They are painstaking seem to be avoiding all things that can trip them up. It is indeed very strategic because the outcomes they want is truly a function of time (survival) and if they can guarantee survival, merchant adoption etc. will come of their own accord.
posted by Dyna:
This is an exceptional post, demonstrating a high level of understanding of DNotes core objectives and strategic directions. Bingo “diversified critical mass of owners is needed” Why is this important? ….. “The composition of this owner base is critical to prevent liquidation of large amounts of DNotes. I see they are addressing this issue on a sustained basis and painstakingly.”
Yes, this is a key component of our stability model. …… “This leads to an upward sloping curve (due to value addition by adding a number of properties like cryptomoms, dnotesvault etc) while preventing a collapse.” Our good whales are somewhat like first responders acting as defensive linemen to prevent a collapse as well to minimize unsustainable upward spikes. However, it is the collective action of the large majority of our stakeholders that keep DNotes price stable. Through consistent and clear messaging majority of DNotes stakeholders are net buyers, starting with a small stash and adding to it for the long term. Our family of CR.I.S.Ps. will take this to next level, making DNotes even more stable.
“Payment gateway is not a technology solution but a social/business/economic solution that will work only with a currency that has shown price stability with an upward drift and low volatility. They are painstaking seem to be avoiding all things that can trip them up. It is indeed very strategic because the outcomes they want is truly a function of time (survival) and if they can guarantee survival, merchant adoption etc. will come of their own accord.” Well said. No further comments needed.
Welcome to DNotes DsoldD. I am working on a number of important projects and did not plan on making my daily post till the end of the day. However, recognizing that the points you raised are not just valid but of critical importance, I feel you deserve an earlier response.
DNotes is like a loaf of bread that is still in the making, typical of just about any business at the formative stage. When it is still in the form of bread dough, it doesn’t look like a loaf of bread or taste as good. DNotesVault, CryptoMoms, and our family of digital savings plans are somewhat like trying to invite interested parties to get together while the bread is being made and baked. In the mean time, it gives us the opportunity to enlighten them as to why our bread is unique and special, worthy of their consideration to be part of the DNotes family. This is almost the equivalent of building a customer base before launching a product.
Mass merchant adoption of DNotes is one of our most important strategic objectives. Essentially, there are two different approaches. Aggressively push as many merchants to sign up to accept DNotes worldwide, and promote the numbers aggressively and hope that everything else will fall in place. We believe that this is a faulty approach but it is significantly easier to execute, consequently, most common in our industry. In marketing this is known as the “push” approach.
DNotes will not pick the easiest route or the fastest way to get something done for the sake of pumping up the price of DNotes. It makes sense when we are committed for the long term. If we are not selling today or over the near term, the higher price than what it already is does not matter as much. What is most important to us is price stability and reliable long term appreciation. I am repeating “stability” and “appreciation” because they are among the most important components in mass merchant adoption of DNotes, and highly desirable for CR.I.S.Ps. to be successful.
DNotes is confident that it is more prudent and strategically sound to deploy the “pull approach” in marketing DNotes to merchant accounts. This is much more difficult and time consuming. Under this approach you create the most favorable conditions and establish a relationship with your target, to the extend, that the product (DNotes) sells itself. Interesting, but how do we get the merchants to come to us, saying that they want to add DNotes as a form of payment for their products and services? We may already have the solutions waiting to be executed.
What if we happened to have an insider or a number of insiders who are DNotes stakeholders, possibly including the business owner? That is one of many reasons why the combination of DNotesVault and our family of CR.I.S.Ps may be the most powerful combinations in our pursuit of mass consumer and merchant adoption of DNotes. Wait, that alone will not be sufficient. Proven stability and reliable long term appreciation must be part of the package, but that will not happen without trust and integrity. We want our merchants not to immediately cash in their DNotes in fear of currency loss. Is that why the price of Bitcoin is on a free fall again? Perhaps a typical 40% increase from Christmas season revenue may have some thing to do with it.
I can make it sounds real simple but it’s not that simple. Think of it as any your favorite competition where a panel of judges rate the contestants based on six categories. A perfect 10/10 in one or more but 6/10 or less in others is not likely for one to come home with a medal. This is a serious problem in our industry. There is a serious lacking in delivering a complete package with deeply informed and capable leadership.
