DYNAMO COIN

Dynamo coin is a proposal for an open-source crypto asset project which brings together several state-of-the-art technical features to form a unique value proposition. The core tenants of Dynamo are consensus governance and economic utility. The primary purpose of Dynamo is to democratize asset transfer by facilitating true peer-to-peer financial transactions in an environment which is governed in a totally decentralized manner by the stakeholders. This whitepaper is intentionally non-tradition... al. The purpose is to convey intended features and the value of those features in simple, non-technical terms. The implementation detail of these features will be more fully stated in the roadmap. For example, Dynamo will contain a stateful and deterministic VM. This paper will propose why that is valuable but will not detail the technical theory behind design choices. Key Features of Dynamo Coin: Decentralized governance – all asset holders will have the ability to materially participate in decision making via on-chain voting which will have finality and result in action being taken. Economics – monetary policy will be enacted based on the consensus governance mechanisms. Built-in on-chain tools will be available to enact inflationary or deflationary policy. There will be no issuance cap. Fair issuance – there will be no-premine, no up-front reserve and no initial dev-fund. There will be a foundation which is community funded over time, however the foundation is bound by the holders of the assets. Native P2P self-executing transactions – native on-chain tools for self-executing financial instruments will be available via a stateful, deterministic, Turing-complete VM (limited only by execution time). Hybrid POS/POW security – blocks will be created by diverse (competing) groups to ensure maximum network security. Blocks must be first mined with a complex POW algorithm and then certified by random stakers with time locked funds. ASIC resistant POW – the POW algorithm will be memory bandwidth hard and compute intensive which will reduce the theoretical power efficiency gains of ASIC devices. Ministerial foundation – the non-profit foundation will serve to kickstart the project and begin mining, staking, hosting full nodes and so on, however it will have no decision-making authority. The sole purpose of the foundation will be to carry out the wishes of the community, as expressed in their voting results. Purpose Cryptocurrencies are, at their core, software and hardware running a consensus algorithm. However, coins are defined by the people who made them, curated them and maintained them. The ethos of the coin, the soul of the project, is driven by people and their collective values and beliefs. The ethos of Dynamo is democracy. Crypto is, by its very nature, a democratic instrument – it is designed to transfer financial power from tyrants to individuals. However, many crypto projects are highly centralized, with a small number of people profiting early on from an ICO, pre-mine or the like. Further, the governance of most projects rests with a chosen few, leading to a singular vision and stifled development. Dynamo creates a framework which allows anyone who is interested to meaningfully contribute to the project and to truly provide native, on-chain, totally decentralized P2P transactions with no intermediary. Dynamo is crypto-democracy. Key Feature – Governance All aspect of governance shall be controlled by the entities holding the asset. Each unit of the asset shall be entitled to slate an issue for voting which will be subject to a discission and review period, followed by a voting period. If the vote for the issue is approved, the foundation shall be bound by the voting decision and shall execute whatever action the voters passed. The rules for voting shall be set forth up front, in plain and simple terms. There will be no change to any rules, including and especially, economic and consensus rules, unless there is an approval of the overwhelming majority of the asset holders. All voting mechanisms will be on-chain, natively supported by the platform, decentralized, verifiable by anyone and built-in to the client tools to facilitate easy participation. Benefits: By laying out clear rules of the game up front, participants will be willing to commit resources to the project. Entities who have a vested interest in the project will vote on projects that provide long term value Making participation easy increases community involvement and innovation. Key Feature – Economics Creation of the asset will occur through a combination of mining and staking. POW miners will create new proposed blocks for acceptance by POS stakers. Random stakers will be selected for each block to attest that the block is valid. Block rewards include fixed amounts for block mining/staking and variable amounts for contract execution or asset transfer. Block rewards will be distributed to miners, stakers and a development reserve fund for each block mined. A portion of each block may be burned to enact deflationary policy if so desired. Benefits: A flexible on-chain system to enact economic policy reduces uncertainty for investors Miners provide liquidity when they sell to cover fiat currency operating expenses Stakers provide medium to long term deflationary value by locking funds Unlimited issuance allows for future growth as the asset adoption increases. Key Feature – Fair issuance There will be no pre-mine, no dev fund reserve, no investor reserve and no coin lock-up. It is anticipated that the foundation will play a role at the start of the process to kickstart the project, however that role should naturally dimmish over time as the asset is more widely adopted. Benefits: Investor adoption should be rapid as there is no concern for large initial sell-offs Developer and commercial interest will be fostered knowing there is a level playing field Fair issuance results in high initial liquidity and greater institutional interest. Key Feature – Self-executing contracts The asset will allow for creation of native, on chain, self-executing contracts. This feature will be used initially for staking lock-up. The feature will be implemented with a deterministic, Turing complete VM (time limited) which will be charged to the creator for execution. The Enhanced UTXO model with persistent state will be used. Developers will be able to write contracts which provision storage and execute arbitrary code. Benefits: Smart contracts allow developers to create decentralized marketplaces which offer peer to peer financial services. Besides asset value transfer, smart contracts are the core promise of crypto – intermediary free financial instruments. Key Feature – Hybrid security Block creation will be secured by a memory-hard, computationally complex POW model, followed by a random selection POS model. POW miners will propose new blocks to the network for acceptance. The network will deterministically select random stakers for attestation. Upon full attestation, the block will be accepted and the rewards distributed. Stakers will be required to lock funds for a specific period of time for an amount based upon a rolling average of total outstanding coins. Stakers will be rewarded for each random attestation they complete and will not be required to be “always on”. Frequent chain checkpoints will provide chainlock security to facilitate light clients, fast load times for full nodes and less rollback/fork risk. Benefits: POW mining provides high levels of decentralized security from disinterested third parties POS attestation provides low latenecy verification from vested parties who are likely diverse from miners POW/POS hybrid makes network attack essentially economically infeasible. Benefits: By eliminating any kind of decision-making authority, the foundation is shielded from the threats of centralization. The foundation can execute the will of the voters free from any ideological or political bais.More