Minting, Converting and Auto Converting
Minting and Converting
When converting or sending BVO privately, BVO will be converted to BVO-P using the following algorithm to automatically determine the denominations used:
- If you have the exact amount, then start with largest possible denomination and go down until you reach the total.
- Otherwise: Minimize Spends (a) find the next denomination higher than the spend amount (if possible) and use that if available, (b) if not available start with the larger denominations and go down until you reach an amount just over what is needed.
- Or: Minimize Change. If not exact, try to find the amount above what is needed that minimizes how many coins you receive in change.
The privacy of BVO-P becomes more effective when more of each denomination is converted from many different sources. To that end, a percentage of BVO will be automatically converted to BVO-P for every wallet. This will guarantee that there will be a sizable pool of BVO-P for operations to go smoothly and to anonymize transactions.
With each incoming new block, it does the following:
- Check how much mintable coins are available.
- Check how much BVO-P is available.
- Check if the percentage is below the target percentage.
If the percentage is below the target percentage, it:
- Calculates how many BVO needs to be converted to BVO-P.
- Uses the next smaller denomination.
- Rinse and repeats until enough BVO-P are minted.