DNotes 2.0 - Staking, CRISP Interest, DNotes Pay

[The Chezzz]

I'm really looking forward to the next releases of the invoicing scripts that are in the works! I find the current solution rather impressive. There is simply no other solution to date that I have seen (and I've googled) that completely disintermediates payment processing to just buyer and seller. The only alternative to using middlemen is to run your own bitcoin wallet as a server, that requires technical skills, security skills, and additional cost and complexity that just wouldn't be feasible for small business. In every other shopping cart instance that exists. creating invoices, receive payment, and distribute goods online requires the complicated setup of you own server, and at a minimum one third-party middleman who takes their fee.

DNotes' solution does away with all of this, creating one of the first true "killer apps" for cryptocurrency in the blockchain-sphere. Bitcoin evolved ledgers to solve the double-spend problem to make decentralized payments possible. DNotes is actively making that technology useful for mainstream adoption.

And to think Joe was bouncing ideas with me some three-or-so years ago for this particular concept, before it was announced mid 2017 as a feature of DNotes 2.0. Now the first experimental versions are releasing, with a range of other shopping cart integrations.

Agreed Tim, well said. Running your own server just for the daemon / wallet to run and manage transactions is simply not a viable solution for the majority of people who want to sell products. If we want to truly be an inclusive digital currency for the benefit of everyone, we need to come up with solutions for everyone to be able transact between two parties.

That is exactly what we are doing, we are providing solutions from the ground up, rather than form the top down. This is what makes DNotes and DNotes Global, Inc. concept so amazing. It is actually beneficial for DNotes Global to act in the benefit of the majority of people, rather than just the ones with the money. What's good for DNotes is good for DNotes Global, and vice versa.

This is exciting news!!!! Other than reading about it here how will the public learn that we are the first to do this? Others might find out and make it happen quickly with their organization and say they were the first to have it working. Then DNotes is second. Just asking how is going to be advertised?

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[Brandon Cheliak]

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

[DNotes]

I'm really looking forward to the next releases of the invoicing scripts that are in the works! I find the current solution rather impressive. There is simply no other solution to date that I have seen (and I've googled) that completely disintermediates payment processing to just buyer and seller. The only alternative to using middlemen is to run your own bitcoin wallet as a server, that requires technical skills, security skills, and additional cost and complexity that just wouldn't be feasible for small business. In every other shopping cart instance that exists. creating invoices, receive payment, and distribute goods online requires the complicated setup of you own server, and at a minimum one third-party middleman who takes their fee.

DNotes' solution does away with all of this, creating one of the first true "killer apps" for cryptocurrency in the blockchain-sphere. Bitcoin evolved ledgers to solve the double-spend problem to make decentralized payments possible. DNotes is actively making that technology useful for mainstream adoption.

And to think Joe was bouncing ideas with me some three-or-so years ago for this particular concept, before it was announced mid 2017 as a feature of DNotes 2.0. Now the first experimental versions are releasing, with a range of other shopping cart integrations.

Agreed Tim, well said. Running your own server just for the daemon / wallet to run and manage transactions is simply not a viable solution for the majority of people who want to sell products. If we want to truly be an inclusive digital currency for the benefit of everyone, we need to come up with solutions for everyone to be able transact between two parties.

That is exactly what we are doing, we are providing solutions from the ground up, rather than form the top down. This is what makes DNotes and DNotes Global, Inc. concept so amazing. It is actually beneficial for DNotes Global to act in the benefit of the majority of people, rather than just the ones with the money. What's good for DNotes is good for DNotes Global, and vice versa.

This is exciting news!!!! Other than reading about it here how will the public learn that we are the first to do this? Others might find out and make it happen quickly with their organization and say they were the first to have it working. Then DNotes is second. Just asking how is going to be advertised?

Thanks The Chezzz, marketing DNotes Pay will be an ongoing and multi-pronged effort, as part of our package of offerings.

You can see our first press release here:
https://bitcointalk.org/index.php?topic=1924858.msg41860816#msg41860816
Which has already started making it's way around to major financial sites, and CryptoCurrency news sites, and social media. Reference Google search here

We will reach people where they are looking for easy and cheap ways to accept payments. That is why integrating into existing web payment and ecommerce platforms will be important.

[DNotes]

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

Thanks Brandon, this will be helpful for development of a DNotes exchange. Abiding by the existing laws will be very important for creating a long term solution for exchanges.

[DCEBrief]

I'm really looking forward to the next releases of the invoicing scripts that are in the works! I find the current solution rather impressive. There is simply no other solution to date that I have seen (and I've googled) that completely disintermediates payment processing to just buyer and seller. The only alternative to using middlemen is to run your own bitcoin wallet as a server, that requires technical skills, security skills, and additional cost and complexity that just wouldn't be feasible for small business. In every other shopping cart instance that exists. creating invoices, receive payment, and distribute goods online requires the complicated setup of you own server, and at a minimum one third-party middleman who takes their fee.

DNotes' solution does away with all of this, creating one of the first true "killer apps" for cryptocurrency in the blockchain-sphere. Bitcoin evolved ledgers to solve the double-spend problem to make decentralized payments possible. DNotes is actively making that technology useful for mainstream adoption.

And to think Joe was bouncing ideas with me some three-or-so years ago for this particular concept, before it was announced mid 2017 as a feature of DNotes 2.0. Now the first experimental versions are releasing, with a range of other shopping cart integrations.

Agreed Tim, well said. Running your own server just for the daemon / wallet to run and manage transactions is simply not a viable solution for the majority of people who want to sell products. If we want to truly be an inclusive digital currency for the benefit of everyone, we need to come up with solutions for everyone to be able transact between two parties.

That is exactly what we are doing, we are providing solutions from the ground up, rather than form the top down. This is what makes DNotes and DNotes Global, Inc. concept so amazing. It is actually beneficial for DNotes Global to act in the benefit of the majority of people, rather than just the ones with the money. What's good for DNotes is good for DNotes Global, and vice versa.

This is exciting news!!!! Other than reading about it here how will the public learn that we are the first to do this? Others might find out and make it happen quickly with their organization and say they were the first to have it working. Then DNotes is second. Just asking how is going to be advertised?

Great question.

As Joe notes below, the effort to tell the world about DNotes Pay is already underway. With that said, though, there's nothing to prevent others from copying the idea. In fact, I would be surprised if that doesn't happen, since it happens pretty much everywhere you look in the marketplace. There's a reason that we have so many different types of soda, cars, toilet paper, potato chips, and so many of the other products that we find in our supermarkets and retail stores. Someone comes up with a great idea, and others follow along and imitate it. I fully expect one or more projects to move to create a similar payment system. It's almost impossible to fully protect ideas once they're out of your head and into the public square.

The thing is, though, that DNotes Pay is part of a broader ecosystem that others will struggle to replicate. Few would even want to attempt the feat. And without that ecosystem, it doesn't really matter if someone else tries to say that they were first. What matters is what they are able to accomplish with the idea. Unless they have a strategy to effectively push toward mass adoption, they're not likely to make much of an impact.

Of course, this is an issue that is likely to come into play in the months and years to come, as DNotes Global continues to innovate and release additional products and services. There will always be imitators.

[wiser]

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

How about NO fractional reserve banking at all. Just use funds the way the customer thinks they are being used. If a customer wants to tie up some funds in a loan, maybe said exchange could offer some options. A few exchanges already offer the ability to lend to margin traders at interest and that's always fun to participate in if you have some BTC you're willing to tie up for a few days. There could be some kind of interest bearing loan for a set amount of time where the user lends money to the exchange for the exchange to invest in infrastructure or whatever and the loan gets paid back in an agreed upon manner. But I don't think an exchange should ever believe that because they consistently have a certain amount of funds on their exchange at any given time, they are free to spend those funds in other ways. To be able to do that, you really need to be a bank, not an exchange, and it's arguable as to whether or not banks should even be doing that in the first place.

The way in which limit orders are processed needs to be fully disclosed. Most people assume limit orders fill in the order they were placed. That should be stated. If there's a different process, that should be disclosed as well. If there are hidden orders, that needs to be disclosed (not the individual hidden orders, but the fact that there are hidden orders), and the way to place a hidden order should be clearly explained.

Any wallet maintenance that disables any part of the wallet function (such as withdrawals, deposits, etc.) needs to be done with very regular progress updates and ETAs for going back online. And if for any reason an ETA can't be reached, then a new ETA with a good explanation for why earlier one wasn't reached needs to be posted. All that info should be accessable from each user's wallet page. That will cut down significantly on support requests so I don't see why more exchanges don't do this anyway.

State of the art security for customer funds needs to be a high priority. I believe specific security standards should be developed by IT people who understand that stuff. Related to that, there should be standards set for how many "glitches" are allowed per day or any other interval, where things aren't working as expected, and standards can be drawn up for how to minimize those issues, which are usually related to scaling. Some kind of minimal infrastructure could be a requirement to receive a certain type of rating (such as A, B, C, etc.). I think in a similar way to how there are standards and recognized procedures for how to build bridges, automobiles and airplanes, there can be those standards and procedures for how to build exchanges. Some things that you can throw together in your garage may be OK for a very small group of people but won't hold up when your user base grows beyond a couple thousand users.

All fees need to be clearly disclosed both ahead of time and as transactions are being set up.

A really nice feature BitTrex has is the ability to go straight to a coin's wallet from the market page so you can make a deposit of that coin without leaving the market page. Another feature I like in BitTrex is having a coin hyperlinked to its market so you can go directly to the desired market from your wallet.

Thorough transaction records need to be kept and made accessible to users via export and API at any time (with maximum allowed "outage" periods). Trading records need to include what coin was bought, what coin was sold, and how much of each, time stamp of trade, and what fees were paid in what currency.

Full disclosure on procedures for customers reclaiming funds in the event of a hack. I would like to log in to an exchange and be able to know ahead of time how the exchange will handle the return of my funds if despite all security measures, funds get stolen. The main reason is that the better prepared to handle an event such as a hack resulting in loss of funds, the less likely such an event is to happen.


I'm sure I can think of more...

[Brandon Cheliak]

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

How about NO fractional reserve banking at all. Just use funds the way the customer thinks they are being used. If a customer wants to tie up some funds in a loan, maybe said exchange could offer some options. A few exchanges already offer the ability to lend to margin traders at interest and that's always fun to participate in if you have some BTC you're willing to tie up for a few days. There could be some kind of interest bearing loan for a set amount of time where the user lends money to the exchange for the exchange to invest in infrastructure or whatever and the loan gets paid back in an agreed upon manner. But I don't think an exchange should ever believe that because they consistently have a certain amount of funds on their exchange at any given time, they are free to spend those funds in other ways. To be able to do that, you really need to be a bank, not an exchange, and it's arguable as to whether or not banks should even be doing that in the first place.

The way in which limit orders are processed needs to be fully disclosed. Most people assume limit orders fill in the order they were placed. That should be stated. If there's a different process, that should be disclosed as well. If there are hidden orders, that needs to be disclosed (not the individual hidden orders, but the fact that there are hidden orders), and the way to place a hidden order should be clearly explained.

Any wallet maintenance that disables any part of the wallet function (such as withdrawals, deposits, etc.) needs to be done with very regular progress updates and ETAs for going back online. And if for any reason an ETA can't be reached, then a new ETA with a good explanation for why earlier one wasn't reached needs to be posted. All that info should be accessable from each user's wallet page. That will cut down significantly on support requests so I don't see why more exchanges don't do this anyway.

State of the art security for customer funds needs to be a high priority. I believe specific security standards should be developed by IT people who understand that stuff. Related to that, there should be standards set for how many "glitches" are allowed per day or any other interval, where things aren't working as expected, and standards can be drawn up for how to minimize those issues, which are usually related to scaling. Some kind of minimal infrastructure could be a requirement to receive a certain type of rating (such as A, B, C, etc.). I think in a similar way to how there are standards and recognized procedures for how to build bridges, automobiles and airplanes, there can be those standards and procedures for how to build exchanges. Some things that you can throw together in your garage may be OK for a very small group of people but won't hold up when your user base grows beyond a couple thousand users.

All fees need to be clearly disclosed both ahead of time and as transactions are being set up.

A really nice feature BitTrex has is the ability to go straight to a coin's wallet from the market page so you can make a deposit of that coin without leaving the market page. Another feature I like in BitTrex is having a coin hyperlinked to its market so you can go directly to the desired market from your wallet.

Thorough transaction records need to be kept and made accessible to users via export and API at any time (with maximum allowed "outage" periods). Trading records need to include what coin was bought, what coin was sold, and how much of each, time stamp of trade, and what fees were paid in what currency.

Full disclosure on procedures for customers reclaiming funds in the event of a hack. I would like to log in to an exchange and be able to know ahead of time how the exchange will handle the return of my funds if despite all security measures, funds get stolen. The main reason is that the better prepared to handle an event such as a hack resulting in loss of funds, the less likely such an event is to happen.


I'm sure I can think of more...

My initial thought would be to agree with you on banning fractional reserve lending, but if a digital group wants to or needs to capitalize on this untouched opportunity then maybe they should be allowed to? All we can do is inform the public to the best of our abilities so they can make wise decisions. Since the majority of new fiat money is created through fractional reserve lending, a digital token should be able to function in the same manner. But don't get me wrong, I think it will end the exact same way as the countless other currency debasement schemes that have taken place over the past several thousand years; but they will never gain such widespread adoption with an informed public. That being said, the industry needs some way to fund oversight and enforcement, because if there isn't someone willing to back up the rules, they aren't worth the paper they were written on. I highly doubt that most cryptocurrency users will be willing to fork over the money to protect their investment, so some sort of debt based monetary system may be a necessary part of the equation.

[wiser]

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

How about NO fractional reserve banking at all. Just use funds the way the customer thinks they are being used. If a customer wants to tie up some funds in a loan, maybe said exchange could offer some options. A few exchanges already offer the ability to lend to margin traders at interest and that's always fun to participate in if you have some BTC you're willing to tie up for a few days. There could be some kind of interest bearing loan for a set amount of time where the user lends money to the exchange for the exchange to invest in infrastructure or whatever and the loan gets paid back in an agreed upon manner. But I don't think an exchange should ever believe that because they consistently have a certain amount of funds on their exchange at any given time, they are free to spend those funds in other ways. To be able to do that, you really need to be a bank, not an exchange, and it's arguable as to whether or not banks should even be doing that in the first place.

The way in which limit orders are processed needs to be fully disclosed. Most people assume limit orders fill in the order they were placed. That should be stated. If there's a different process, that should be disclosed as well. If there are hidden orders, that needs to be disclosed (not the individual hidden orders, but the fact that there are hidden orders), and the way to place a hidden order should be clearly explained.

Any wallet maintenance that disables any part of the wallet function (such as withdrawals, deposits, etc.) needs to be done with very regular progress updates and ETAs for going back online. And if for any reason an ETA can't be reached, then a new ETA with a good explanation for why earlier one wasn't reached needs to be posted. All that info should be accessable from each user's wallet page. That will cut down significantly on support requests so I don't see why more exchanges don't do this anyway.

State of the art security for customer funds needs to be a high priority. I believe specific security standards should be developed by IT people who understand that stuff. Related to that, there should be standards set for how many "glitches" are allowed per day or any other interval, where things aren't working as expected, and standards can be drawn up for how to minimize those issues, which are usually related to scaling. Some kind of minimal infrastructure could be a requirement to receive a certain type of rating (such as A, B, C, etc.). I think in a similar way to how there are standards and recognized procedures for how to build bridges, automobiles and airplanes, there can be those standards and procedures for how to build exchanges. Some things that you can throw together in your garage may be OK for a very small group of people but won't hold up when your user base grows beyond a couple thousand users.

All fees need to be clearly disclosed both ahead of time and as transactions are being set up.

A really nice feature BitTrex has is the ability to go straight to a coin's wallet from the market page so you can make a deposit of that coin without leaving the market page. Another feature I like in BitTrex is having a coin hyperlinked to its market so you can go directly to the desired market from your wallet.

Thorough transaction records need to be kept and made accessible to users via export and API at any time (with maximum allowed "outage" periods). Trading records need to include what coin was bought, what coin was sold, and how much of each, time stamp of trade, and what fees were paid in what currency.

Full disclosure on procedures for customers reclaiming funds in the event of a hack. I would like to log in to an exchange and be able to know ahead of time how the exchange will handle the return of my funds if despite all security measures, funds get stolen. The main reason is that the better prepared to handle an event such as a hack resulting in loss of funds, the less likely such an event is to happen.


I'm sure I can think of more...

My initial thought would be to agree with you on banning fractional reserve lending, but if a digital group wants to or needs to capitalize on this untouched opportunity then maybe they should be allowed to? All we can do is inform the public to the best of our abilities so they can make wise decisions. Since the majority of new fiat money is created through fractional reserve lending, a digital token should be able to function in the same manner. But don't get me wrong, I think it will end the exact same way as the countless other currency debasement schemes that have taken place over the past several thousand years; but they will never gain such widespread adoption with an informed public. That being said, the industry needs some way to fund oversight and enforcement, because if there isn't someone willing to back up the rules, they aren't worth the paper they were written on. I highly doubt that most cryptocurrency users will be willing to fork over the money to protect their investment, so some sort of debt based inflationary monetary system may be a necessary part of the equation.

That's a tough one, and I guess people and businesses should always have a choice. So, in that case, some standards for "appropriate" fractional reserve would be in order. However, I would still reserve the very top rating to exchanges that don't engage in this. I personally think that fractional reserve banking isn't really the place of an exchange, plus the exchange already profits on trading fees so there isn't a need to try to figure out a way to make money while making everything free (as an American bank kind of has to these days). The trading fees are already accepted practice. Some exchanges discount for makers, but not all do and it's not a major expectation. So, it's not like the exchanges can't make money without fractional reserve schemes.

[Brandon Cheliak]

Cryptocurrency Exchanges Should be Self Regulated - US Think-Tank
https://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?

First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown: https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/

Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.

POLICIES
-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.

STANDARDS
-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold

GUIDELINES
-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities

How about NO fractional reserve banking at all. Just use funds the way the customer thinks they are being used. If a customer wants to tie up some funds in a loan, maybe said exchange could offer some options. A few exchanges already offer the ability to lend to margin traders at interest and that's always fun to participate in if you have some BTC you're willing to tie up for a few days. There could be some kind of interest bearing loan for a set amount of time where the user lends money to the exchange for the exchange to invest in infrastructure or whatever and the loan gets paid back in an agreed upon manner. But I don't think an exchange should ever believe that because they consistently have a certain amount of funds on their exchange at any given time, they are free to spend those funds in other ways. To be able to do that, you really need to be a bank, not an exchange, and it's arguable as to whether or not banks should even be doing that in the first place.

The way in which limit orders are processed needs to be fully disclosed. Most people assume limit orders fill in the order they were placed. That should be stated. If there's a different process, that should be disclosed as well. If there are hidden orders, that needs to be disclosed (not the individual hidden orders, but the fact that there are hidden orders), and the way to place a hidden order should be clearly explained.

Any wallet maintenance that disables any part of the wallet function (such as withdrawals, deposits, etc.) needs to be done with very regular progress updates and ETAs for going back online. And if for any reason an ETA can't be reached, then a new ETA with a good explanation for why earlier one wasn't reached needs to be posted. All that info should be accessable from each user's wallet page. That will cut down significantly on support requests so I don't see why more exchanges don't do this anyway.

State of the art security for customer funds needs to be a high priority. I believe specific security standards should be developed by IT people who understand that stuff. Related to that, there should be standards set for how many "glitches" are allowed per day or any other interval, where things aren't working as expected, and standards can be drawn up for how to minimize those issues, which are usually related to scaling. Some kind of minimal infrastructure could be a requirement to receive a certain type of rating (such as A, B, C, etc.). I think in a similar way to how there are standards and recognized procedures for how to build bridges, automobiles and airplanes, there can be those standards and procedures for how to build exchanges. Some things that you can throw together in your garage may be OK for a very small group of people but won't hold up when your user base grows beyond a couple thousand users.

All fees need to be clearly disclosed both ahead of time and as transactions are being set up.

A really nice feature BitTrex has is the ability to go straight to a coin's wallet from the market page so you can make a deposit of that coin without leaving the market page. Another feature I like in BitTrex is having a coin hyperlinked to its market so you can go directly to the desired market from your wallet.

Thorough transaction records need to be kept and made accessible to users via export and API at any time (with maximum allowed "outage" periods). Trading records need to include what coin was bought, what coin was sold, and how much of each, time stamp of trade, and what fees were paid in what currency.

Full disclosure on procedures for customers reclaiming funds in the event of a hack. I would like to log in to an exchange and be able to know ahead of time how the exchange will handle the return of my funds if despite all security measures, funds get stolen. The main reason is that the better prepared to handle an event such as a hack resulting in loss of funds, the less likely such an event is to happen.


I'm sure I can think of more...

My initial thought would be to agree with you on banning fractional reserve lending, but if a digital group wants to or needs to capitalize on this untouched opportunity then maybe they should be allowed to? All we can do is inform the public to the best of our abilities so they can make wise decisions. Since the majority of new fiat money is created through fractional reserve lending, a digital token should be able to function in the same manner. But don't get me wrong, I think it will end the exact same way as the countless other currency debasement schemes that have taken place over the past several thousand years; but they will never gain such widespread adoption with an informed public. That being said, the industry needs some way to fund oversight and enforcement, because if there isn't someone willing to back up the rules, they aren't worth the paper they were written on. I highly doubt that most cryptocurrency users will be willing to fork over the money to protect their investment, so some sort of debt based inflationary monetary system may be a necessary part of the equation.

That's a tough one, and I guess people and businesses should always have a choice. So, in that case, some standards for "appropriate" fractional reserve would be in order. However, I would still reserve the very top rating to exchanges that don't engage in this. I personally think that fractional reserve banking isn't really the place of an exchange, plus the exchange already profits on trading fees so there isn't a need to try to figure out a way to make money while making everything free (as an American bank kind of has to these days). The trading fees are already accepted practice. Some exchanges discount for makers, but not all do and it's not a major expectation. So, it's not like the exchanges can't make money without fractional reserve schemes.

I would consider many cryptocurrency/token exchanges more similar in functionality to a bank, than a currency or securities exchange. As soon as an exchange engages in lending activities, I'm pretty sure that puts them into a different regulatory classification. Many financial institutions offer currency exchange services, but no currency exchange services can offer other financial instruments like financial institutions can.

[Brandon Cheliak]

Good arbitrage opportunity for anyone who wants to try out this new exchange-
Buy support up to 1750 sat on listex.io (currently only BTC withdrawals) https://dashboard.listex.io/trading/notebtc
Note sell orders as low as 1050 on Mercatox https://mercatox.com/exchange/NOTE/BTC

[wiser]

I would consider many cryptocurrency/token exchanges more similar in functionality to a bank, than a currency or securities exchange. As soon as an exchange engages in lending activities, I'm pretty sure that puts them into a different regulatory classification. Many financial institutions offer currency exchange services, but no currency exchange services can offer other financial instruments like financial institutions can.

Good point about the lending putting an institution into a whole other regulatory class. I guess if they are regulated more like a bank, then they could have the privileges of a bank as well, including acceptable levels of fractional reserve banking, etc.

Margin trading lending may be a special case, as it's directly to traders with the trading platform being the facilitator and taking their cut, so I'm not sure if that would trigger that banking regulatory class. That may be the reason why in the fiat world, the privilege of lending to margin traders is reserved for the brokerage houses and is not available to users. While I definitely want that to be above board and safe, I do like being able to participate in that opportunity with small amounts of funds.

If an exchange is just going to be an exchange, then I would say no to any fractional reserve schemes. They wouldn't be lending anyway, as that's what a bank does, except maybe to facilitate lending to margin traders.

It's amazing how much overlap there is. I think you're right, that cryptocurrency exchanges really are more like banks or other types of financial institutions. It makes sense to get the whole banking/financial services licenses in order to operate at full capacity. I'm glad DNotes Global is aiming to get all those licenses. It will be so much easier to deal with all things financial under one roof.

[R-J-F]

Ok, so I'm about to take back what I said about liking Mercatox! Wallet is STILL down, my coins are still trapped doing nothing when they could be making interest. This is getting old!

Just venting... 

[DNotes]

https://dnotesglobal.com/2018/07/09/dnotes-global-inc-announces-proof-of-concept-for-dnotes-pay-automated-online-payment-system/

[DNotes]

DNotes 2.0 Frequently Asked Questions:

Q: What is new with DNotes 2.0?

A: DNotes 2.0 is a major improvement on the original DNotes blockchain. The new blockchain will allow DNotes and its partner company DNotes Global to achieve its objective to connect DNotes to the modern world of finance and commerce. The new blockchain is faster, more secure, and consumes only a fraction of the electricity. It also allows custom invoices to be created and attached to transactions, and changes the economic incentives of the network to one that encourages savings with the switch to the Proof-Of-Stake algorithm, and paying 0.5% interest on balances that haven’t moved from a wallet address in a 30 day period (~6% per annum).

Specifications

POS
2% Annualized Staking Reward
Individual blocks reward will be Current Total Coins / 525,600 * 0.02
60 Second Block Target
0.005 Transaction Fee
Source: https://github.com/DNotesCoin/DNotes2.0
Download Wallet: http://dnotescoin.com/#Download
Directory DNotes2 (C:\Users\USERNAME\AppData\Roaming\DNotes2 on Windows)
CONF dnotes.conf (all lower case)

DNotes 2.0 Features
Switch to PoS
CRISP Reward - 0.5% interest every 30 days. Awarded by address. Calculated on a 30 day cycle.
Automated Invoicing (First Phase) - Integrated blockchain invoice number

There will be a soft deadline where DNotes mined after that block will not be redeemable for 2.0 coins:
4/16/2018
Block# 2180897
133,574,552 Will be the total swappable amount of DNotes we create
+20,000,000 Allocated to DNotes Global, Inc for Development & Growth Fund
153,574,552 Total DNotes 2.0 Created

The next update (TBD) will include:
Deferred Staking

Q: How do I swap my coins? (after April 16th)

A: The DNotes coin swap process will now be done through a private fork of the legacy DNotes blockchain. We have created this fork to ensure that legacy DNotes holders are still able to swap their legacy DNotes for DNotes 2.0 long after the deadline, in the event they missed the swap. This also ensures we will not be accepting newly purchased or mined DNotes, protecting our users and network.

In order to swap your coins, you will need the following DNotes v1.3 wallet, which you can download here:
http://dnotescoin.com/DNotes/dnotes-qt1-3.zip
You will need to copy your wallet.dat or wallet backup file to C:\Users\USERNAME\AppData\Roaming\DNotes1-3 directory, open the wallet application and allow it to update.
Next, you will need an address to send your legacy DNotes in to for the coin swap, you can generate a legacy address with the following instructions:
Create a DNotesVault.com account if you don’t already have one.
Login to your DNotesVault.com account, and click the HISTORIC tab at the top.
Click Create Address, and send your DNotes to the address you just created.

Coin swaps will be processed once a month until further notice.

Q: What is the cutoff date for mined DNotes that can be swapped to the new DNotes blockchain?

A: We have set April 16th 2018 as the soft deadline. No DNotes mined after this date will be eligible to be swapped to DNotes running on the new blockchain. We will continue swap DNotes after that date, however the process will not be as easy and will take more time. Any DNotes 1.x purchased on exchanges after the 16th will not be eligible for the swap.

Q: Will DNotes 2.0 be listed on new exchanges?

We are currently listed on:
https://mercatox.com/exchange/NOTE/BTC
https://stocks.exchange/trade/NOTE/BTC
https://dashboard.listex.io/trading/notebtc
https://www.nlexch.com/markets/notebtc
https://bitebtc.com/trade/note_btc

We are actively working with and in active communication:
https://www.coinexchange.io

Beta or Future Exchanges we are working with:
https://blockbid.io/

Q: Are the new DNotes 2.0 coins worth the same as the old coins?

A: Yes, they are worth exactly the same. However we can not predict what price movements will occur at exchanges once DNotes is relisted using the new coins.

Q: I have Mac or Specific Linux OS, will there be wallets for these?  

A: Yes!
We currently have Windows / Mac / Linux Mint / Ubuntu Desktop wallets at DNotesCoin.com. If you need something else, please let us know.

Q: Where is the block explorer?

A: https://chainz.cryptoid.info/note/


Staking

Q: What is Staking?

A: Staking your coins helps to support the DNotes network, and the network currently pays out roughly 5 DNotes every minute to one address on the network based on a probability that centers on how many coins the user is staking with as a percentage of the total number of coins being staked on the network. The DNotes network pays out ~2% of the total number of coins per annum. If 100% of DNotes were being used to stake on the network, then by probability each user could expect 2% growth in the number of coins they have. If only 50% of coins are used to stake, then those users could expect approximately 4% growth that year.

Q: Can I stake my coins on the DNotesVault?

A: You cannot currently stake your coins that are on the DNotesVault, you will need to withdraw your DNotes 2.0 to a local wallet and stake your coins from your local wallet. We will in a future release incorporate cold staking, which will allow you stake your coins while they are safely tucked away inside the DNotesVault. However, we do not have an ETA, it will be one of our highest priorities for next upgrades.

Q: How do I stake?

Disclaimer: It is recommended that you properly secure your computer and wallet, as well as make proper backups, before attempting to run your own staking wallet. Failure to properly secure your DNotes may result in loss or theft. If you are not familiar with the process, please start off small and familiarize yourself with the process.

You will need to download the DNotes QT wallet here: http://dnotescoin.com/#Download

Install the wallet (and we recommend creating a backup, after encrypting your wallet)
Go to settings, and then ‘encrypt wallet’. Enter your password twice (and do NOT forget it, or you will not be able to access the wallet and we can not help you).
Go to settings, and then ‘unlock wallet’, enter your password, and select “for staking only”. This will prevent any transfers from being made from your wallet without the password while you stake your coins.
Soon the arrow at the bottom will turn green. This means that your coins are now staking.
   
Video: https://youtu.be/bR66LWPRzAU

Q: How do I get the most out of my staking efforts?

A: There is no trick to staking efficiently. The factors involved are your coin weight versus the network coin weight and coin weight is the number of coins currently staking. The age does not matter, nor does how you divide or move your coins around.

Q: How much can I earn staking?

A: That depends on how many coins you are staking and how many coins are being staked on the network. The blockchain distributes Current Total Coins / 525,600 * 0.02 every block, or every 60 seconds. You may calculate how often you are chosen to receive the block reward by dividing your network weight verse your weight. If network weight is 100, and your weight is 5, then you would be chosen for block reward 5 blocks out of every 100.



CRISP

Q: Can I get CRISP reward AND stake at the same time?

A: Yes, the system is designed to allow you to receive CRISP on a wallet you are staking

Q: What is the CRISP reward structure?

A: CRISP periods are every 43,200 blocks (30 days). Payments start 10,080 blocks (1 week) from the end of the CRISP period.

Q: What do I need to do to earn CRISP?

A: Keep your coins in the same address for the full CRISP period 30 days, set every 43,200 blocks.

Q: When will I receive CRISP payments?

A: The next payouts are as follows:

May 1 - Ends first CRISP period.
May 8 - Payout starts. (Virtually no one will receive this payout)
June 2 - Ends second CRISP period
June 10 - Payout starts

Roughly.

Q: Do I get CRISP payments at the DNotesVault?

A: Yes! You get CRISP inside the DNotesVault, or at any address you control, such as a Desktop wallet. Though I won't suspect you will be able to get CRISP rewards from the exchanges or other online providers.

Q: Where do the CRISP coins come from?

A: The blockchain, these are newly created coins and have now become part of the new coin distribution, just like the staking reward.

Q: How do I earn the interest reward?

A: Our Cryptocurrency Investment Savings Plan (CRISP) payouts occur approximately once per month. All coins that haven’t moved address during that month period will accrue a 0.5% interest, which compounds to roughly 6.17% per annum. If you move your coins during that time, those coins will not receive the interest for that month.

Wondering what DNotes is all about? Here’s the basics:

What is DNotes?
•   DNotes is a digital currency with a purpose: to serve as a real currency that people can use in their daily lives - unlike other digital currencies that focus on solving niche problems, with no plan to become a real, usable currency.
•   The DNotes goal is simple: achieve mass adoption and become the world’s first accessible, inclusive, and financially empowering digital currency that benefits everyone around the globe.

What are DNotes’ Benefits as a Currency?
•   DNotes is managed as a business – but not controlled as one.
•   DNotes success is driven by a profit-generating company, DNotes Global, created to promote mass adoption, protect the currency, and ensure sustainable growth.
•   DNotes’ unique CRISP savings program rewards DNotes owners with 0.5% interest, every month
•   DNotes offers staking rewards for stakeholders – at 2% a year.
•   DNotes provides blockchain invoicing features to simplify merchant acceptance and adoption of the digital currency.

What Benefits Does DNotes Global Provide?
DNotes Global protects DNotes and its stakeholders, promotes mass adoption, and creates value and utility for the digital currency, including a fully integrated ecosystem.
The company provides a unique cross-ownership model, with DNotes owning 25% of DNotes Global (pre-dilution), while the for-profit business maintains a stake in the digital currency.
DNotes Global generates profit, creating intrinsic value for the DNotes currency to help create a “floor” for the digital currency’s value.
DNotes Global has plans to build a long-term competitive advantage by offering services that utilize DNotes. That strategy will also help to facilitate awareness and adoption of the DNotes currency.
Long term competitive advantage DNotes Global will provide in offering services that utilize DNotes.

What’s Next?
Fully compliant Reg D 506 (c) crowdfunding followed by a Reg A+ Mini-IPO.
DNotes Payment Solution Integration into Existing eCommerce Platforms
Cold Staking Implementation & More

Where can I learn more?  
Pitch Deck - https://dnotesglobal.com/PitchDeck.pptx
Pitch Deck Video - https://www.youtube.com/watch?v=XculeWKdbbE
White Paper - https://dnotesglobal.com/white-paper/
Website - http://dnotescoin.com/
Blog - http://dnotescoin.com/blog-main-hub/

[DNotes]

Ok, so I'm about to take back what I said about liking Mercatox! Wallet is STILL down, my coins are still trapped doing nothing when they could be making interest. This is getting old!

Just venting... 

Understand, it seems as though it's causing some negative pressure there as well. All we can do for now is open another ticket.

[DCEBrief]

Analyst Tells CNBC Change Needed for Bitcoin Bulls to Return

https://dcebrief.com/analyst-tells-cnbc-change-needed-for-bitcoin-bulls-to-return/

[DNotesEDU]

Video – Using DNotes Automatic Payment Scripts

https://dnotesedu.com/2018/07/video-using-dnotes-automatic-payment-scripts/

[btcsmlcmnr159]

Thanks for informative video, from which I known more about how to use DNotes Automatic Payments.

Video – Using DNotes Automatic Payment Scripts

https://dnotesedu.com/2018/07/video-using-dnotes-automatic-payment-scripts/

Demands on BTC has risen considerably recent days. It is one of early signal for future growth.

Analyst Tells CNBC Change Needed for Bitcoin Bulls to Return

https://dcebrief.com/analyst-tells-cnbc-change-needed-for-bitcoin-bulls-to-return/

[DNotesEDU]

Thanks for informative video, from which I known more about how to use DNotes Automatic Payments.

Video – Using DNotes Automatic Payment Scripts

https://dnotesedu.com/2018/07/video-using-dnotes-automatic-payment-scripts/

Demands on BTC has risen considerably recent days. It is one of early signal for future growth.

Analyst Tells CNBC Change Needed for Bitcoin Bulls to Return

https://dcebrief.com/analyst-tells-cnbc-change-needed-for-bitcoin-bulls-to-return/

Tim has been doing a great job on the videos, very informative and easy to follow.

[DNotesEDU]

DNotes & The Magic of Compound Interest: CRISP + Proof of Stake

https://dnotesedu.com/2018/07/dnotes-the-magic-of-compound-interest-crisp-proof-of-stake/