Topic: DNotes 2.0 - Staking, CRISP Interest, DNotes Pay - page 254. (Read 148866 times)

Excellent TimMarsh, there are some great ideas in here.

1) Agreed, although it is a long term goal in the overall project, we are interested in a multi-currency card which will extend to a mobile payment system.

2) We have looked at systems that operate in an offline capacity and still able to transact, many of the proposed systems could have exploits in a fully decentralized platform, unless there is a way to reach the online network. If one of the parties or someone in the mesh have a connection to the greater network, the authorization could be passed from one device to another and on to the network, this type of a system could work in either a decentralized or centralized payment network. Though I am sure there may be other implications we haven't fully realized yet.

3) Absolutely!

4) Exactly! Triggers will be a very useful tool for not only the individual in loss prevention and fraud detection, but also from the third party standpoint. The more you want to send, the more criteria such a system might require to enable the transaction.

Thanks for sharing Denver Dan, I just read through their website / white paper / and watched a few of their videos. Interesting project, and though it may be difficult to enter the system, it looks like once you enter the system it will be fairly simple to use. I also appreciate that they appear to be real people and willing to put themselves out there. From what I understand they are trying to democratize VC and create a smart contract based exchange with a simple web interface and built on Ethereum. Because the token was created by crowdsale, they are considered a security and as a result are having trouble being listed on exchanges. So in order to circumvent this problem and get listed on exchanges, they split the token into two, which they are saying one is a utility token. Both tokens can be swapped on their platform and in theory the utility token should be free to be traded on non-security based exchanges. But wasn't the utility token derived essentially from the crowdsale?

It would still take much more research to fully understand where they are headed and I still have many questions. Some include, and don't worry about answering these, I am just posing questions for the sake of sharing my thought process and what I would look into next. Are the crowdsale funds used only to fund the project? If so, how does the project sustain itself long term, will there be future crowdsales? Will there be means for them to participate and take profit from the new projects created on their platform? Are new coins generated at the time of new projects being created or is it a fixed supply? What drives the value of the token? Is the token value relative to the success of the projects on the platform? What type of projects can be created on the platform?

Mainstream media moment...

Forbes now has a Digital Money section with a Twitter account name of @ForbesCrypto.

https://www.forbes.com/digital-money/#247d7e5d53d1

You've Been Warned, SEC Head Says Of Cryptocoin Offerings

https://www.law360.com/articles/986080/you-ve-been-warned-sec-head-says-of-cryptocoin-offerings

Jay Clayton said his office will start taking action against coin offering issuers who fail to register with the agency or comply with federal laws.

"I think that now we have given the market a sufficient warning where we can move from level-setting the field to enforcing it," Clayton said, responding to a question from Manhattan District Attorney Cy Vance Thursday morning at the Federal Reserve Bank of New York, where Clayton was the event’s keynote speaker.

"Where we see fraud, and where we see people engaging in offerings that are not registered, we are going to pursue them because these types of things have a destabilizing effect on the market," the SEC chair added.

My initial impression is that it seems like a strange way to do it--splitting the tokens into two other tokens. It might be a creative way to attempt to satisfy regulations. I don't think compliance is as complicated as some people say. I think the "sniff" test the regulators use is going to be: "If it walks like a duck, quacks like a duck..." In other words, if it in any way functions as an investment product, it's going to be considered a security by the regulators unless there are specific rules allowing for your particular "exception."

I have a very busy day on my schedule. Thank you, all, for some amazing posts. Tim’s list of mobile applications is very helpful. Please keep your great ideas coming.

Thank you, Denver Dan for sharing. Let me make a quick comment on DRP.

“We anticipate a substantial amount of DRP holders are based in the United States or other countries where it is very unclear as to what is or is not classified as a security.” I don’t mean to be harsh and wish that ICOs are not constrained by the lack of legal clarities. What I do know is that it is illegal to sell securities in the United States that are not registered or exempt with SEC.

Now what?  “Because of the nature of the smart contracts, DRPU and DRPS will not be listed on exchanges until after the tokens are unlocked. We encourage patience as we work to implement these changes in hopes that we will provide a lawful and safe network for everyone’s usability.”

Frankly, I have grave concern on this one. We can hope for anything. I fear that they may end with up many legal challenges that result in burning up a lot of money and time. And that could lead to a lot more uncertainties and challenges.

At DNotes, we believe in doing our home and do the right thing. There are many alternative funding options that are perfectly legal. We believe that in the best interest of our stakeholders it pays to avoid taking the risk of exploiting gray areas for possible loopholes.

I bought into this ICO a while back, and now these guys are doing some things I thought DNotes might be able to learn from, or at least watch them as a case study on how they are handling compliance issues. DCORP (DRP) is building a futures trading platform, so not the same arena as DNotes. A couple main things to follow:

They are converting their main ICO token into two different tokens, eliminating the original.  One is a "Utility Token" (DRPU)with double the voting rights, the other a "Securities Token" (DRPS) with equity/profit rights to the development.

They will have a "Token Changer" on their website to do this with.  Send in DRP, change out for either of the two mentioned above for no fee the first time.  It will be interesting to see the functionality of this.

They have the new U and S coins listing soon on different exchanges.  The two different versions will be trading at the same time(well, 3 including the original).

DRP will also require personal information to do this swap.  KYC, etc.  ....interesting

There's a couple other things I do like how there doing.  Weekly video updates with a real person, not animations.  Descent P.R.  Most found on their youtube channel.  Here's a couple links for your review.

https://www.youtube.com/watch?v=OXYo-R3MRl8
https://www.dcorp.it/
description of coin split  https://us10.campaign-archive.com/?u=be7fe07e359e8aa8f29f7000d&id=d0c84e6612
https://bitcointalk.org/index.php?topic=1928628.1800

I have mixed opinions on all this.  More interested in what our community thinks.

 

Okay, so I say I'm interested in your opinion, and you respond by setting up a meeting with the Reserve Bank of New Zealand. You know that's even taking "above-and-beyond" to a whole new level, and very much appreciated.

Two things that many managers of central banks were concerned about in the linked article, were
1) Runs on banks. I think this is because, unlike hard cash that banks can refuse to put into withdrawal machines or hand over the counter, a national cryptocurrency can't be withheld.

2) Privacy concerns. None of the quoted managers elaborated on what that meant, but I think it is both true and hypocritical of them. How can you say that cryptocurrencies are bad because they are used for purchasing illegal goods and services, and then turn around and say "we need hard cash because it provides necessary privacy that traceable and permanently exposed cryptocurrencies can't."?

So I would be very interested to hear what the New Zealand managers think about these two questions as well. Best of luck and thanks for championing the cause of cryptocurrency at a national level. I hope you're keeping fit and trim because they're going to make a bronze statue of you one day.

This is a great list of criteria for a successful mobile-payments app. I would like to add two extra things, that sit further down the priority list. Then some other numbered thoughts.

1) It must be able to work with multiple sources of funds, both fiat and selected cryptocurrencies. I'm thinking a partnership with Revolut would be worth considering. My guess is that most customers would not mind if it worked like a digital wallet that needs topping up from their preferred fund source. This would be especially true if it enabled 'draining' back into that fund source as well.

2) It must enable hotspot/mesh style mobile access via the seller's connection. That way ANY customer with a mobile device can transact even if they don't have a data connection at that time.

3) Another feature that would give the mobile application a significant advantage is non-sellers being able to accept mobile payments seamlessly. Often, and particularly as a parent, the money that came out of my wallet went to another person, not as a transaction. If this was easy to do, then it would truly feel like a digital wallet.

4) User defined limits and protocols would also give customers confidence. I could set a limit of $20 per instance and $100 per day for direct personal transactions. Then a higher limit to sellers and so on. I would even like to make settings for large planned transactions. So I could be buying a bedroom suite, and have transferred a lot more money into my wallet than I usually carry. But that large sum would be allocated to seller accounts linked to an Australian Business Number. I'd be much happier with that than walking around with a few thousand in cash.

I don't believe DNotes should expend energy or finances developing this solution. It is neither their core business nor their strength. Nor would it give their currency a market advantage because the world's most popular mobile wallet will work with multiple fund inputs seamlessly. But DNotes should be continuously on the lookout for and building relationships with all entities attempting this so that DNotes are an accepted fund source from the beginning.

DNotes should also be designing DNotes2.0 so that it uses standard approaches to integration into such a system as third-party digital wallets might expect. This would include fast transaction speeds, defined level of certainty after not too many blocks are forged, stable and functional api rules and so on.

What DNotes are doing really well, and possibly leading the market in, is recognising the importance of a stable price. Their POS shift stopping miner sales, and their generous staking rewards that include 12 month bonuses, all contribute to price stability. Also their long-term vision and steady progress, coupled with a well developed ecosystem makes it clear to investors that long-term trading is going to be more profitable than short-term trading. This price stability is very important for users wanting to transfer funds out of their DNotes account into a third-party wallet, because otherwise they would fear losing money if they transferred before a sudden spike in value. Without price stability, there would also be a huge reluctance to top up a wallet when the value source is perceived to currently be in an extreme, but very short term dip in value.

So if DNotes Global Inc gets DNotes2.0 right, I see them as being in a very strong position for early acceptance into all new mobile wallet projects. 

Thank you for sharing your prospective concerning ICOs. You seem to have done your homework and very knowledgeable on the subject. It will be very much appreciated if you can visit us often and share your wisdom.

Alternative funding, such crowdfunding, and ICOs when properly structured and in compliance with existing regulations are crucial for growth stage companies. Unlike before, when VC ruled because that was the only game in town, we now have many options. Unfortunately, it can be confusing, and much education is needed for entrepreneurs, who need funding, to truly benefit from it. I will do my best and share what I know.

In the case of DNotes, we are leaning in favor of Reg. A+ Title 4, Tier two for many reasons. It can be promoted globally to non-accredited investors subjects to 10% limit of investor’s annual income or net worth, whichever is greater. Of course, there is no limited for accredited investors and we can raise a maximum of $50 million over a continuous period of 12 months.  Tier 2 pre-empts Blue Sky laws in each state. Therefore, State registration is not required – a very big deal. When required, most registered or exempt funding campaigns limit their target markets to a few states where they are registered. Once quailfied by SEC, DNotes can legally mount a national and global campaign. That is quite amazing. I am very passionate about financial inclusion. The less fortunate, should not be excluded from investment opportunities because they are not wealthy. However, I am a staunch supporter of reasonable consumer protection.

Good points multibit, there is a legal framework for crowdfunding regardless of the platform used to raise funds. The SEC has already sent out a clear warning and DOJ is actively pursuing cases of clear fraud. Very well put "Watch out!". DNotes is taking a very different path to raise funds and create a model for others to follow and participate in, doing it the right way and following all the guidelines. It all ties into our model for NextGen VC.

Welcome ned61thornton to the DNotes forum. Sorry, I'm not sure what you mean.

I read that too. ICOs as they are currently structured are of serious concern to regulators. They are good for the insiders but extremely risky for the average investors, with no consumer protections. ICO is great as an alternative funding tool when done side by side with legitimate crowdfunding. However it is much more difficult and expensive. None the less, that is what I support and believe will lead to. Meanwhile, those who can or dare continue to exploit ICOs to rake in a boat-load of quick monies. I agree with you "Watch out!"

Did you reach the soft cap?

We have been working hard and long for almost 4 years. The DNotes Story is amazing and one that we all can be proud of to tell anyone. Yes, we are almost ready to share our vision with the rest of the world.

That is amazing! I love the human interest / social entrepreneurship approach of their documentaries - very impressive.

Quick update:

I just got done talking to Success File. They are excited about the DNotes story and support our commitment to education. From their stand-point - education that informs viewers on the very latest topic and trends impacting the world. DNotes is a worthy contender.

It is a big production project. They will be keeping an eye on us with the next scheduled conference in early April, 2018.

You may check up on Success Files HERE: http://www.successfilesrl.com/

Mobile will play a huge role in the future of payments and cryptocurrency mass acceptance. It will have to be fast, adaptive to users habits, secure and recoverable, functional and simple to sign up and use. There are mobile cryptocurrency options today, but in order to use them there are trade offs in risk/cost/functionality and most of them are not easy. Progression will likely be done in phases, making it almost a seamless transition to the end user. The first step will be to integrate into the existing financial system, where there will need to be a trusted third party provider.

This is part of the role that DNotes Global Inc will play in the pursuit of bridging the gap between the centralized and decentralized with significant interest in making it cost effective as well as meeting the criteria above, in contrast to other third party providers without significant interest in the success of the currency itself. There will still be a desire and need for those tech savvy individuals that understand how to protect themselves and willing to take on their own risk, and we will help provide solutions for these individuals as well.

Thank you all. Great discussion. Let me approach things from a different prospective.

This is indeed a brave new world (a decentralized alien world) that just landed on our centralized planet where everything must be filtered and squeezed by central intermediaries or central authorities. It is disruptive, chaotic, and at times – lawless. It is causing a paradigm shift – now a $300 billion market Cap that exceeded the market valuation of Bank of America.

We are still at the infancy, but without a doubt witnessing the greatest technology revolution since the Internet. It is bigger, even more widespread – because one day it will impact the entire human race in every corner of the world.  Digital currency is the future of money. One or more will gain global mass acceptance – we just do not know which one, how many, and when.

Like fiat currencies there will be choices, and some will be best suited for very specific applications. Don’t be shocked, if that number goes over one million. Crazy, may be not. A college kid (nerd) can set up shop to create a token or digital currency every 30 minutes and charges $500 each. A white paper will cost you ten times more even though much of the contents are just “copy and paste”. Legal or not, this reality will continue if a few insiders/issuers can make $ millions and have full control of the entity. The investors, typically, have no ownership or voting rights. Many may not have a clue, but most are in it to find a greater fool willing to pay a higher price. The chance to get rich quick is a powerful motivator. We are all capable of being greedy to a varying degree. Sadly, this show may go on for a while longer. But I do believe that the easy money for ICO issuers is becoming significantly more difficult and risky, unless carefully navigated under capable legal guidance.
 
But what would it cost to do it right? A lot in terms of time and money. DNotes has already taken almost four years to build the most essential segments of our ecosystem at a significant cost (a little fortune and privately funded). That is just for a starter. The next phase of DNotes we are about to embark will require significant resources – capital and human resources. I will continue to share some insights with you when I can. Though I am not done, my research thus far, is suggesting that a $500,000 budget to successfully launch a Reg A+ Mini IPO under Title IV Tier 2 to raise up to $50,000,000 is a good estimate.

We are at the exploratory stage and may take it through “test the water” stage and not committed to go through with it. Do not make investment decision to buy DNotes based on our funding choice or any assurance of the efforts of being successful. Instead, I would appreciate that our community members interested to know more to do extensive research on Reg + Mini IPO and help us think through. We believe in doing the right for the mutual benefits of all our stakeholders over the long term.

I will continue this post later. I am joining a conference call soon. It may be a long short but DNotes is being considered as a potential project for Success Files educational content. It is part of Public Television in all 50 states hosted by Rob Lowe.

It is going to be very interesting to see what NZ does in regards to considering issuing its own digital currency. I have many questions regarding how they would do this, and in particular, an interest in the ease that a system would make it to swap the NZ dollar tokens for other cryptocurrencies. I would absolutely support NZ becoming a leader in this regard, and I do play on my day off tomorrow to write the Reserve Bank an e-mail and make myself available. I have consulted ~10 people from two large government organisations here in New Zealand already regarding their official positions on digital currency.

My main questions are:

1. Would the Central Bank issue the tokens?

• Would they be replacements for current units of money, or inflation to the current amount already outstanding?
• Inflation rate? / would the blockchain be permissionless so the public can view the current money supply and trace issuance of new money etc?

2. Could the digital NZ dollars also be privately issued by banks?

Would the units held by banks be limited to the number of 'normal' New Zealand dollars held? (at least initially since there will be overlap for several years). If a bank had 100 million New Zealand dollars, and also 100 million New Zealand crypto dollars, and the law stipulated that only one of 'each dollar' (100m) can be in circulation at any time, it would not make any difference to banks if customers withdrew either currency type. For example: if I chose to deposit 100 New Zealand dollars into the bank, they can loan that out to other customers under reserve banking rules. I can then decide to withdraw that money (and it hits their reserve fund to make loans), but if I instead withdrew that money in New Zealand crypto dollars, then the bank could still hold onto that original 100 New Zealand dollars for loaning purposes. If at any time in the future I wanted my money in physical cash, the bank could exchange my New Zealand crypto dollar tokens for New Zealand cash.

3. Would banks be expected to accept customer deposits that originate from crypto exchanges, where it is likely the funds were previously held in other cryptocurrencies?

4. Would the currency in any way be made proprietary to function with Central Bank oversight, only usable within the current banking framework -- i.e. only mainstream banks will have compatible software through licencing that will work with the currency?

No attempts to create proprietary applications for the NZ crypto dollar that would attempt to prevent it from being traded directly, or into other currencies peer to peer?