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  • WhitePaper DeflationCoin
  • 1. Introduction
  • 1.0. Preface
  • 1.1. The Socio-Economic Consequences of Inflation
  • 1.2. The process of exporting inflation from the U.S. to other countries
  • 1.3. A Global Bankrupt Disguised as a "Financial Leader"
  • 1.4. The Birth of the Crypto Industry
  • 1.5. Bitcoin’s Limitations
  • 1.6. A Cryptocurrency Without the Flaws of "Digital Gold"
  • 2. Mission and Objectives
    • 2.0. Mission and Objectives
  • 3. Operating and design principles
    • 3.0. Preface
    • 3.1. Limited Supply with Zero Inflation
    • 3.2. Daily Smart-Burning of Coins
    • 3.3. Deflationary Halving—Unlike Bitcoin.
    • 3.4. Smart-Staking
    • 3.5. Smart Dividends
    • 3.6. Gradual Unlocking
    • 3.7. Basket and Pump (BaP)
    • 3.8. Attention Capture Mechanism
    • 3.9. Blockchain-Integrated Affiliate Marketing
  • 3.10. Smart Fees
  • 3.11. Deflationary Ecosystem
  • 3.11.1. Educational Gambling
  • 3.11.2. Potential Directions for Scaling the Ecosystem
  • 3.11.3. Legal and Regulatory Aspects of the Ecosystem
  • 3.12. Environmental Principle
  • 3.13. Geometric Progression in Coin Distribution
  • 3.14. Automated Diversification Across Exchanges
  • 3.15. Online Node
  • 3.16. Open Source Blockchain and Financial Transparency of the Ecosystem
  • 3.17. Three-Level Decision-Making Mechanism: "Proof-of-Deflation"
  • 3.17.1. Meritocracy of Ideas
  • 3.17.2. Skin in the game
  • 3.17.3. The Right to Veto
  • 3.18. The principle of “Humor and Memes”
  • 4. Team
    • 4.0. Preface
    • 4.1. Natoshi Sakamoto
  • 4.2. Vitalik But Not-Buterin
  • 4.3. DeflationCoin Mafia
  • 5. Tokenomics
    • 5.0. Preface
  • 5.1. Token Distribution
  • 5.2. The 50% | 50% Expenditure Principle
  • 6. Blockchain architecture level
    • Minus 1 level (-L1)
  • 7. Technical Architecture
    • 7.0. Technical Architecture
    • 7.1. Reliability and Security Architecture
    • 7.2. Cryptographic Security Methods
    • 7.3. Conceptual Architecture of DeflationCoin
    • 7.3.1. Smart Contract Architecture
  • 7.3.2. Online Node
  • 7.3.3. Deflationary Ecosystem
  • 7.3.4. Automated Order Placement on DEX
  • 7.4. Development and Transition to a Proprietary Innovative Blockchain.
  • 8. asset rating
    • 8.0. Asset Rating
  • 8.1. Detailed analysis of indicators
  • 9. Conclusion
    • 9. Conclusion
  • 10. Reference
    • 10. Reference
  • 11. Contact Information
    • 11. Contact Information
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  • Elements analyzed:
  • Three Stages of the Proof-of-Deflation Mechanism:
  • 1. Meritocracy of Ideas
  • 2. Skin in the game
  • 3. Founder’s Veto
  • Parameters of Each Stage:
  • 1. Meritocracy of Ideas
  • 2. Skin in the game
  • 3. Veto
  • Immutable Elements:
  • Approved Changes and Enhancements:
  • Important Notes!

3.17. Three-Level Decision-Making Mechanism: "Proof-of-Deflation"

During the creation of this chapter, artificial intelligence analyzed decision-making systems in various structures with the highest economic performance and development levels:

Elements analyzed:

  • Countries with the highest GDP and living standards, such as the USA, China, Norway, Switzerland, Denmark, and others.

  • Companies with a market capitalization exceeding $1 trillion and the highest profitability per employee, including Apple, Alphabet, Facebook, Berkshire Hathaway Inc., Renaissance Technologies, and others.

  • Popular cryptocurrencies, such as Bitcoin, Ethereum, BNB, Solana, TON, and more.

In addition to analyzing the decision-making systems of these leading entities, artificial intelligence also studied those that failed to achieve success. This information proved equally valuable as it provided insights avoiding mistakes. Based on a comprehensive analysis, an innovative decision-making mechanism, Proof-of-Deflation, was developed.

Proof-of-Deflation is an innovative three-level decision-making mechanism based on the deflationary model of Deflation Coin, where decisions about implementing updates are made according to the principles of meritocracy, the "skin in the game" rule, and a founder's veto at the final stage.

Three Stages of the Proof-of-Deflation Mechanism:

1. Meritocracy of Ideas

At this stage, ideas are selected based on their merit. Every coin holder can propose ideas for the project's development. This approach ensures that decisions are made based on an objective analysis of proposals rather than the status or hierarchy of their authors. Each idea undergoes rigorous evaluation for feasibility and potential impact on the project's success. This ensures that the most promising and innovative proposals are selected (details in Section 3.17.1).

2. Skin in the game

At this stage, decisions on implementing ideas are made by those with a direct stake in their outcomes. Participants must have both responsibility and personal investments in the results. This principle encourages thoughtful, rational decision-making, as participants are directly tied to the consequences of their decisions. It excludes the influence of indifferent or random voters, increasing accountability (details in Section 3.17.2).

3. Founder’s Veto

At the final stage, the project founder has veto power, enabling them to block decisions that contradict the project's fundamental strategy or could harm its development and participants. As the creator of DeflationCoin, the founder has a complete vision of its growth, including long-term factors, justifying the need for veto rights. This serves as an additional safeguard against potentially destructive changes (details in Section 3.17.3).

Parameters of Each Stage:

1. Meritocracy of Ideas

  • No time limits for idea submission.

  • Ideas are evaluated based on both the number of votes and the X-multiplier, with both counts running in parallel.

2. Skin in the game

  • Voting duration: 7 days.

  • Required majority for approval: 51%.

3. Veto

  • Veto duration: 7 days. If the veto is not exercised within this period, the update is activated in the blockchain.

Immutable Elements:

  • Maximum number of coins.

  • Immutability of transactions.

  • Alteration of balances or blocking of any wallet.

  • Transparency and openness of source code.

  • Proof-of-Deflation (PoD) mechanism.

Approved Changes and Enhancements:

  • Strengthening security and protection against attacks.

  • Improving user interface.

  • Allocating budgets from centralized wallets.

  • Developing elements of the Deflationary Ecosystem.

  • Adjusting revenue distribution shares within the ecosystem.

  • Determining the development vector for new ecosystem elements.

  • Voting to elect managers responsible for various ecosystem elements.

Important Notes!

  • Coins allocated for the geometric progression mechanism are excluded from voting until acquired by investors.

  • Coins held in centralized wallets or accumulated via the smart-commission mechanism are also excluded from voting.

  • Development of Deflationary Ecosystem elements is centralized. Decisions on new functions and updates are made by leadership, enabling swift market responses and preserving confidentiality.

  • During the initial stage, updates to DeflationCoin can only be implemented by two founder wallets. Once the Proof-of-Deflation (PoD) concept is technically implemented, it will be fully applied in practice.

Detailed descriptions of each Proof-of-Deflation stage are provided in the following sections.

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