Why Liechtenstein, Malta or Estonia?
All three countries are members of the European Economic Area (EEA) and the latter two are in the European Union (EU).
The advantage is that all three of these countries pursue a highly innovative blockchain legislation strategy and are more open to new technologies than other European countries.
How are the revenues from the sale of DES utility tokens used?
The development budget made available from the sale of tokens is managed on a trust basis and deployed in a targeted manner to help achieve the project objectives. The DES COIN project reserves the right to invest surplus capital as company capital, acting on its own authority, in order to offset development costs through interest income.
This does not represent any form of investment that can be classed as commissioned, i.e. undertaken on behalf of third parties. This is an internal means of controlling equity. The aim of any investment is to generate a stable economic system by developing business areas and strategic participation. This is necessary in order to ensure that the DES COIN product can be made fully ready for series production, with the help of a scaled test market. To protect the end consumers involved in the test market, stable reserve capital is required.
What will happen to the DES utility tokens (DES UT) issued in the ICO?
The DES UT will be exchanged for DES governance tokens (DES GT) after the ICO and when the DES Exchange V2 goes live. The tokens will be exchanged in accordance with the factorisation agreed in the PerICO or ICO. DES GT are required as a security deposit for masternodes.
How much are the transaction fees in the DES COIN network?
The fees are generally much lower than in the FIAT money system. They also depend on whether a "private transaction" or "public transaction" is involved.
The cost of a private transaction will be 0.05% of the transaction volume, while the fee for a public transaction will be 0.01% of the transaction volume.
A transaction fee ceiling is planned but has not been implemented yet; under current plans, five DES COINs will be the maximum level.
What type of consensus algorithm does DES COIN use?
Due to the high transaction speed and resource/energy efficiency that underpin DES COIN, the project has opted to use the "Proof of Authority" (PoA) consensus mechanism.
How does the DES COIN "Proof of Authority" consensus process work?
A general rule for PoA is that the masternode operator validates the transaction process using their name. The PoA is a modified form of Proof of Stake (PoS), which validates the data exclusively via a stake. In particular, the DES COIN masternode is a PoA solution in which a DES GT deposit is a condition of use.
However, the deposit does not have to be made entirely by the authority and instead can be supplemented by investors too. These make up the shortfall of DES GT required to run the masternode and take a share of the revenues in return. As a result, there are two groups involved in operating a masternode. The authority actively runs the masternode and ensures its technical reliability and availability. The capital contributors – as the investors – are involved passively, sharing in the earnings by depositing DES GT. The authority and capital contributors form a symbiotic alliance with a common purpose.
Who can run a DES COIN masternode?
Because of the liability of validating transaction data in the system under the PoA consensus mechanism, masternode operators must meet particular requirements. These not only concern technical capabilities, but also demand great commitment to the project and reliability.
Furthermore, the authority is responsible to capital contributors regarding their deposits.
How are revenues shared between the authority and the capital contributors?
Due to the authority's technical workload and responsibility for the masternode, the authority receives 1/6 of revenues.
The remaining 5/6 are distributed among the capital contributors according to the size of their deposit.
How many masternodes will there be in the DES COIN network?
There will be 1000 masternodes in the DES COIN network.
How many masternodes can be run per natural/legal person?
Use is limited to five masternodes; this will ensure the minimum level of decentralisation for confirming transactions.
In addition, with PoA, the authorities' management is crucial to guarantee the network's security and reliability.
What happens if the masternode system runs at full capacity?
If the system is used to full capacity, the quantity will be doubled; in this scenario, the limit for a masternode deposit will be halved. An operator of one node will then be able to run two nodes. Alternatively, the right to run the extra node can be sold to suitable candidates.
How is the DES COIN masternode rewarding system structured?
The DES COIN masternode receives income from two sources: the transaction fees and the DES DAO capital gains from the DES COIN offering.
80% of the transaction fees from the DES COIN network are distributed to the nodes. Node activity is taken into account when the funds are paid out.
In addition, 15% of the capital gains of the DES DAO are given to the masternodes by way of reward.
Why is the reward system based on two sources?
The saying "don't put all of your eggs in one basket" is the guiding rule here!
To ensure the masternode network runs on a stable basis, it is important that the node operators' financial motivation does not depend solely on the network's transaction activities. By sharing the return even when transaction activity levels are low in the network, node operators remain motivated to maintain the network.
What other advantages does the two-part reward system offer?
The possibility of drawing rewards from two sources means it is in the participants' own interests to promote DES COIN and encourage market adaptation.
If the number of DES COIN owners increases, both the number of transactions and the interest-bearing capital will grow. These factors will improve the price of DES COIN and put a self-reinforcing mechanism into motion that will generate growth in value for all parties involved – DES COIN owners and node operators.
How profitable is it to run a DES COIN masternode?
Based on current calculations, we expect a return of 5% to 8% from transaction fees.
We anticipate a return of between 3% and 25% from capital market revenues. This extrapolation is rather vague due to the uncertainty of the following factors in particular: the level of investment in DES COIN, the price development, the capital market revenues of the masternode quota and a number of other input factors.
However, it can be stated generally that the masternode revenue will increase as the success of DES COIN and market adaptation grow.
What deposit is required for running a masternode?
To run a DES COIN masternode, a total deposit of one million DES GT is required. This can be provided entirely by the authority, as the operator, or be supplemented by the capital contributors.
However, it is advisable for an authority to provide at least 10% of the deposit itself in order to demonstrate a stable basis of trust by proving to DES GT investors that it is sufficiently financially committed to the project.
How many DES GT are available?
A maximum of 1000 masternodes with a deposit of 1 million DES GT per node gives a total volume of 1 billion DES GT
Why is the total deposit so high?
The perception of the deposit amount is relative, plus it is on a par with DASH.
It should also be noted that the DASH and DES COIN masternode rewarding systems are fundamentally different.
How high are the trading fees of the DES Exchange?
The cost structure of the DES Exchange depends on the exchange pairings. There are no transaction costs for the FIAT/DES exchange pairing. The DES/BTC, DES/ETH and DES/LTC pairings incur a fee of 0.05% of the exchange volume.
What is the trading fee used for?
The trading fee is charged in order to cover the running costs of the Exchange and marketing expenditure, and to provide enough funding for sales contributions. The amount to be paid may be adjusted depending on the market situation or environmental conditions which cannot be influenced. The trading fee is deliberately placed above the level of regular trading fees to promote the DES Exchange. This is intended to motivate the user to carry out real financial operations using DES utility tokens and to reduce the risk of "pump and dump" campaigns.
Is it possible to return the coins?
The owner of the DES GT can sell it to other interested parties on the exchange provided for this purpose. However, users do not and have never had any right to return their tokens to DES-Capital Technologies Limited. The DES project reserves the right to buy back DES utility tokens for economic and strategic reasons.
What does "FixValue" mean?
The underlying value of the DES COIN is not fictitious, but instead based on various forms of investment. These values are invested by selected asset managers on a return-oriented basis. The FixValue reflects the value at which each DES COIN could be bought back if the DES DAO were dissolved. This core value reduces exchange rate fluctuations and in particular provides companies with a stronger guarantee for reliable transactions using DES COIN. This means that DES COIN is also the only blockchain currency to date to have its value based on tangible assets; this is similar to the valuation of companies on the stock exchange
Explanation of terms and abbreviations used
Blockchain refers to a decentrally stored, chained list of datasets which is protected using cryptographic methods. Blockchain can therefore be compared to a transparent database. All transactions are recorded in a "digital account statement"; they can be seen by all members of the network and cannot be changed afterwards. Thanks to this process, blockchain provides levels of transparency and security between individual parties in a transaction higher than anything that has been seen before.
Coins and cryptocurrencies can often be used synonymously. Examples include Bitcoin and Ethereum. Unlike tokens, coins have their own blockchains. A token is placed on the blockchain of a coin (usually on Ethereum, as well as REME tokens). Tokens, like coins, are traded on an exchange after the ICO. This means that from a practical perspective, there is essentially hardly any difference for the purchaser between a coin and a token. This is why the terms "coin" and "token" are used interchangeably in this document.
Know-your-customer principle (KYC)
The term "know-your-customer" means verifying the personal data and business data of new customers to prevent money laundering and the financing of terrorism on the basis of the EU anti-money laundering directive.
The term "know-your-customer" is commonly abbreviated to "KYC".
Where natural persons are concerned, the type of occupation and purpose of the business relationship must be recorded. In the case of politically exposed persons (or "PEPs"), the function and place where they hold their position must be recorded. For legal persons, the type of company, activity, sector, sector code, number of employees, ownership relations and company structure, and the key financial data must be recorded. As a general rule, the origin of money and assets must be clarified. Details of the planned customer relationship, such as the scope or payment transaction types, must also be recorded. All individuals instrumental in compiling the KYC must be documented too, as well as any subsequent changes to the KYC document.
"Standard small customers" that are not particularly large and whose transactions are not especially unusual can be excluded from the general verification.
If the specific rules are not adhered to, the company could face substantial fines, prison sentences for senior executives or even revocation of its business permit. In addition, the reputational risk cannot be underestimated. Different KYC verification levels are essential depending on the classification and business volume
An Initial Coin Offering (ICO) takes its name from the term IPO (Initial Public Offering). However, in the case of an ICO, purchasers buy coins or tokens rather than shares in a company. The sale of coins or tokens is intended to finance the relevant project, similar to the principle of crowdfunding.
DES is constructed from the terms "digital", "equivalent" and "stabilised" and reflects the core message of a stable cryptocurrency of equivalent value.
Tokens are digital units of account which were created based on an existing blockchain or cryptocurrency (for example Ethereum). Most tokens – including DES utility tokens – are converted using the Ethereum blockchain. Tokens can be used for a range of purposes. "Smart contracts" can be programmed to provide tokens with a range of functionalities.
DES utility token (DES UT)
Required for the development of the final DES COIN, alongside the necessary infrastructure and markets. The utility token is based on the Ethereum ERC20 standard.
DES governance token (DES GT)
After the ICO has been completed successfully, the DES utility token will be converted into the DES GT with a corresponding bonus. The DES GT is required for making a deposit in a DES COIN masternode.
DES COIN (DES-C)
The end product – a new virtual currency. It is the next generation of currencies based on blockchain. DES COIN is based on Quorum, J.P. Morgan's blockchain project, which is an Ethereum fork.