7.4. Development and Transition to a Proprietary Innovative Blockchain.

In the medium term, the project plans to transition to its own blockchain, marking a critical milestone in its strategic development. However, the current priority is achieving a rapid launch and market entry, which is facilitated by leveraging the Binance Smart Chain (BSC) platform. This approach minimizes time-to-market, enabling faster ecosystem and token functionality development.

Using BSC provides the project with numerous advantages, including high performance, low transaction fees, and user-friendly interactions. These factors accelerate the implementation of core functionalities and market entry, which is crucial for achieving initial strategic objectives.

Simultaneously, the project team is actively developing a proprietary blockchain that will eliminate the current limitations of the BSC platform related to decentralization and independence. Transitioning to a custom architecture will enable the realization of three core principles: scalability, security, and decentralization, alongside the introduction of unique tokenomics mechanisms.

One key advantage of transitioning to a proprietary blockchain is reducing reliance on external platforms. Despite BSC's advantages, using a third-party blockchain inherently involves risks, such as policy changes, increased fees, or technical limitations that could negatively impact the project's stability. Managing its own infrastructure will eliminate these risks, granting the project full independence and flexibility in decision-making.

The proprietary blockchain will also enhance ecosystem security. Within its own network, the project can implement unique protection mechanisms, including advanced encryption algorithms, multi-level authentication, and extended multi-signature systems for key operations. This will minimize the likelihood of attacks and build a high level of trust among users. Additionally, the proprietary blockchain will enable data and fund audits, further strengthening the project's transparency and security.

Another critical aspect is the ability to establish a unique brand. A proprietary blockchain will serve as a key identifier for the project, demonstrating its independence and technological maturity. This will reinforce DeflationCoin's image as an innovative and sustainable solution. Furthermore, the custom network will provide additional integration opportunities with other blockchains through bridges, expanding access to new users and fostering effective partnerships.

The transition to a proprietary blockchain will improve economic efficiency. Managing the fee structure within its own network will allow funds to be redirected toward project development, encouraging long-term user participation. For example, transaction fees can be distributed among validators and the deflationary ecosystem pool, further enhancing the project's financial sustainability and that of its participants.

As part of the project, a Yellow Paper detailing the technical aspects of the new blockchain, such as architecture features, consensus algorithms, and tokenomics mechanisms, will be published shortly. This document will be a significant step toward demonstrating the project's transparency and technological maturity.

The transition will be a gradual and well-thought-out process, consisting of the following stages:

• Comprehensive Needs Analysis: This stage identifies the key functionalities and mechanisms required for implementation.

• Detailed Architecture Design: Based on the analysis, a detailed network architecture is developed, encompassing consensus algorithms, security models, and tokenomics features.

• Prototype Development: A network prototype is created to test key functionalities such as transaction processing, consensus algorithms, and security measures.

The creation of a proprietary blockchain will be a natural progression for the project. This step will open new horizons for scaling, improving security and introducing innovations. By managing its own infrastructure, the project can deliver a unique user experience, strengthen its independence and ensure the sustainable growth of the ecosystem for years to come.