ANOTE White Paper
Abstract
ANOTE is a simple and viral LPoS (Leased Proof of Stake [1] [2]) cryptocurrency, easy to use, easy to mine and completely independent in its development and management which are both encouraged and incentivized using game theory [3] [4] inside the community that surrounds it.
ANOTE is completely Open Source [5], developed by the community, managed by the community and used by the community in a 100% decentralized manner. It’s an app that provides an infrastructure for itself and incentives to develop it, to maintain it, to expand it, to use it etc.
Introduction
Even though all cryptocurrencies are nominally decentralized, we have all noticed the issue of whales and their manipulations. This is also a problem because it allows “old money” to influence our projects. ANOTE aims to decrease the influence of money in a decentralized crypto project and to increase the influence of knowledge and competence. It allows anybody to mine it because people love to mine and uses education between community members to create new value. It has mechanisms to be completely and absolutely decentralized while being 100% user friendly and simple to use for an end user. It has referral system and other incentives to make it viral.
Since there’s no need for thousands of copies of the same blockchain, in the future, ANOTE will bring partial blockchains and network of blockchains.
It will also introduce a concept of regular apps to decentralized network in a way that miners will sponsor user inputs in the blockchain to make user experience as much as familiar as possible while selling additional features or services. This will render MetaMask and other tools obsolete as it should because this system is the biggest obstacle in blockchain mass adoption.
Simple Tools
In order to achieve mass adoption, we need some simple tools, easy to use for the end users. We already have some of those:
- wallet (anote.digital)
- blockchain explorer (anote.live)
- node (https://github.com/anonutopia/anote-node)
- other tools
Other tools that we need as soon as possible are for example tool for node owners, simple exchange, atomic swap [6] [7] gateways etc.
Built-in Expansion
In order to achieve mass adoption, a cryptocurrency needs a slow, steady and continuous expansion. ANOTE has a built-in system for this.
The percentage of block rewards goes to the DAO address which then in a decentralized manner sponsors leasing to new nodes (to expand the network of nodes in Leased Proof of Stake system), desktop mining, mobile mining, long-term independent ANOTE development and other things like additional projects, grants and similar.
ANOTE also has a built-in referral system sponsored by the DAO fund with a sole purpose to make it viral on all levels — node / server (sysadmins), desktop / laptop (tech people), mobile (regular end users).
Built-in DAO
ANOTE has a built-in DAO (Decentralized Autonomous Organization) [8] that manages its development and other aspects of it. It functions in a way that miners provide a network fee which then goes to DAO address. This is secured by the lease being provided to them by the network (DAO) to start mining in Leased Proof of Stake system.
The percentage that miners are required to provide is decided by voting as well as all outgoing transactions — for leasing, sponsored desktop and mobile mining and other community needs that might emerge.
Multiple Blockchains
Since ANOTE has a built-in node network expansion and there’s no need for thousands and thousands of copies of the same data (especially if it’s data for decentralized apps and not currency), one of first milestones is to make it possible to start nodes with their own blockchains, interconnect them with atomic swaps and in that way create a network of blockchains. Add a decentralized blockchain directory and you have a very optimized blockchain in terms of disk usage.
Absolute and Total Decentralization
To make ANOTE completely decentralized, it has voting mechanisms on all levels:
- DAO fee percentage
- DAO transactions voting
- node level monetary policy voting (reward per block)
- voting for addresses that can update smart contracts and node distribution itself
Everything on ANOTE is decided by informed voting.
Mining
Everybody loves to mine and we’ve all witnessed it with PI [9]. This is why ANOTE makes it possible for users to mine on all levels:
- node / server mining
- desktop / laptop mining
- mobile mining
The only real mining happens on mining nodes (servers). But they provide anotes and infrastructure for both desktop and mobile mining. Desktop mining only ensures that the computer is powered on so it still uses some amount of electricity to generate new anotes.
Mobile mining is much more interesting. Unlike PI, ANOTE mining adds extra value to the system. Users are given an ad on a Telegram channel (3rd party tool with views count) and provided with a daily mining code (attached to an ad every day) which they must enter when they restart the mining cycle. Ads on Telegram channel are purchased through auctions and paid for with anotes.
Application Sponsorship
Let’s face it, end users are confused with MetaMask and that whole paradigm. This is why we have to make it all more familiar to them in order to achieve mass adoption. With this goal in mind, ANOTE is introducing a blockchain freemium model [10] [11]. DAO sponsors end user entries in the blockchain for a free version of the software it provides in a decentralized manner. However, some parts of it are paid for with anotes and other cryptocurrencies.
AINT — Anote Infrastructure Token
Since there are differences between LPoS and PoW (Leased Proof of Stake and Proof of Work) other than just those obvious, like the fact that you can’t sell the miner that easily in case of market volatility which automatically makes market more stable in case for example Bitcoin, ANOTE introduces an additional token that is limited to 144 thousands and can only be purchased through smart contract.
AINT (Anote Infrastructure Token) is used as a mining power in all three mining scenarios. For example, on node level, the percentage of locked AINT tokens affects nodes network fee.
This way, the more anotes you stake or lease, the more often you hit a block. However, the more aints you stake or lease, the more anotes you get per block. AINT is also used to crowdfund the initial stages of development, until ANOTE generates organic market demand.
Technical Information
ANOTE runs on WAVES protocol. It has its own blockchain and network of nodes, its own simple to use wallet, gateway to WAVES network, blockchain explorer and a set of smart contracts to make it all work in a secure manner.
Current monetary policy on node level is this:
- 1 anote per block
- 1 block per minute
This adds up to 1440 new anotes per day. The network started with 1000 premined anotes, just to enable mining with WAVES protocol.
Conclusion
WAVES created and provided an incredible technology ready for mass adoption. ANOTE provides incentives for that mass adoption — referral system, mining for everybody, simple and easy to use tools and a completely changed paradigm for building decentralized apps, one that is extremely attractive to the developers.
Discussion
All communication, user support and discussions is done using Telegram messenger and this is the “official” ANOTE group:
References
[1] https://docs.waves.tech/en/blockchain/leasing
[2] https://academy.binance.com/en/articles/leased-proof-of-stake-consensus-explained
[3] https://www.investopedia.com/terms/g/gametheory.asp
[4] https://en.wikipedia.org/wiki/Game_theory
[5] https://en.wikipedia.org/wiki/Open_source
[6] https://www.investopedia.com/terms/a/atomic-swaps.asp
[7] https://docs.kaleido.io/kaleido-services/token-swaps/architecture/
[8] https://en.wikipedia.org/wiki/Decentralized_autonomous_organization
[9] https://finance.yahoo.com/news/pi-network-reaches-33-million-181500816.html
[10] https://www.investopedia.com/terms/f/freemium.asp
[11] https://en.wikipedia.org/wiki/Freemium
