DW20 Decentralized standard currency

Financial Perspective of a Cryptocurrency Novice

Decryption White Paper Series

As the airdrop approaches, we have begun to publish DW20 white papers, chainless white papers, and comments from experts. The knowledge span of cryptocurrency is enormous. Based on our learning experience, we have launched a white paper series with various authors and perspectives. There will always be one that suits you. There are five versions of the DW20 white paper; there are two versions of the chainless white paper, suitable for different readers. We will publish them starting with the most readable version. Interspersed with commentaries.

Written earlier: I met Peter Pan in 2023 through the series of articles “Invite out Satoshi Nakamoto to welcome the new world.” He is the first reader to leave a message on our website chainless.hk. That is what the community is like, meeting friends through writing. I invited Peter to write a white paper from his perspective. He put in a lot of effort and also showed his strengths and viewpoints—a financial view of a cryptocurrency novice. That is a self-effacing statement. In fact, both the concept of cryptocurrency and financial cognition are of a high level. His writing is easy to understand, more friendly to most readers who do not understand technology, more readable, and has a larger audience. He wrote out his understanding:”For thousands of years, the ruling class has used its verdict power to invisibly exploit the working people through inflation with currencies such as pounds sterling, dollars, leather money, platinum coins, and Jiaozi. To use DW20 coins is to support ourselves and oppose tyranny and deprivation. That is the core idea of DW20 community culture.”The shouts were moving.

ALTHOUGH I KNEW ALL THE WORDS when I read the Bitcoin white paper for the first time, I couldn’t understand it because it was completely different from traditional cognition. Centralization is engraved in their bones, especially for Chinese people who grew up in a unified education. The most difficult thing in the world is to defeat self. Study Multiple analysis articles of Bitcoin white papers inspired me to understand Satoshi Nakamoto’s white paper from multiple perspectives. I don’t even remember their names, so I would like to say thank you to these unsung heroes! Relying on your popularisation, let me walk into the palace of cryptocurrency.

The knowledge span of cryptocurrency is too large. Based on our learning experience, we have launched a series of white papers with various authors and perspectives. There is always one suitable for you.

Zhu Weisha

July 16, 2023

Table of contents

  • Chapter 1 Introduction to DW20 Decentralized standard currency
    • 1. Developer
    • 2. The origin of DW20 standard currency
    • 3. Decentralized and community-driven projects
    • 4. Evolved community governance mechanism
  • Chapter 2 A Currency of Freedom and Justice
    • 1. A meme coin (community coin)
    • 2. A standard currency
    • 3. A standard currency (world currency)
  • Chapter 3 System Functions
    • 1. DW20 stable currency runs on a chainless platform
    • 2. Put the chainless DW20 coins onto the Bitcoin chain
    • 3. Relevant anonymity and security
  • Chapter 4 Currency Issuance and Economic Model
    • 1. Distribution of DW20 coins
    • 2. Airdrop
      • 2.1 Airdrop to 50 million Bitcoin addresses
      • 2.2 Airdrop after 50 million Bitcoin addresses
    • 3. Lock-up mechanism
      • 3.1 Determination of lock time
      • 3.2 Release of lockout
    • 4. DW20 Stability Fund
      • 4.1 The Role of the stabilization fund in the first stage
      • 4.2 The second stage mortgage Bitcoin market making
      • 4.3 The Bitcoin Standard’s Ruler in the Third Stage
    • 5. Financial characteristics of DW20
      • 5.1 The Role of basic funds
      • 5.2 Basic Fund and DW20 standard currency Attributes
  • Chapter 5 Related Risks
    • 1. Team risk
    • 2. Technical risk
    • 3. Legal risk
  • Afterword

Chapter 1 Introduction to DW20 Decentralized standard currency

1. Developer

The principal designer of the DW20 Decentralized standard currency is Zhu Weisha. He was the chairman and president of Yuxing Technology Holdings Co., Ltd. and lived in Hong Kong. He has experienced 40 years of China’s reform and opening up. He has developed technological products and operated listed companies. He has deep thinking about business and human nature; in 2023, Zhu Weisha launched a series of articles and videos on “Please Invite Satoshi Nakamoto to Welcome the New World,” which introduced the research experience of Bitcoin, popularized the knowledge of cryptocurrencies such as currency and value, and proposed proposals such as Bitcoin USD and Bitcoin Hong Kong Dollar.

DW20 coins are issued based on the chainless platform, and the core system of the platform is written by Dr. Li Bing alone. It should be pointed out that the earliest Bitcoin was also a one-person system. As a backup plan, they also implemented a chainless system using blockchain technology.

2. The origin of DW20 standard currency

Satoshi Nakamoto believes that there are three significant problems in the modern financial system: excessive currency issuance by the central bank, bubble lending by commercial banks, and the inconvenience of micropayments. From a practical point of view, the Bitcoin system is the most suitable system for issuing stored-value currencies. The purpose is to use a distributed method to solve the central bank’s currency over-issuance. Many outstanding people have continued to innovate for more than ten years since then. Still, traditional banks have never appeared in the cryptocurrency ecosystem, meaning the bubble lending problem has not become a prominent problem. It has to be said that Satoshi Nakamoto is powerful. Theoretically, there must be a bubble problem once capital precipitation occurs. However, with the existence of the peer-to-peer structure of cryptocurrency and the presence of transparency, the money will be sent directly to the other. So far, the phenomenon of bubble lending is not severe. The so-called over-issuance of currency is precisely the creation of stablecoins using credit.stablecoins are centralized; the problem is also with centralized projects, including centralized exchanges. Can it be controlled through transparency? Zhu Weisha’s white paper did not give a conclusion.

Is it challenging to have bubble lending in a purely distributed environment? That’s the conclusion. That is an experimental result confirmed by a fascinating cryptocurrency. That indicates the possibility of a new financial ecology without inflation.

In order to achieve the goal of a new financial ecology, it is necessary to have a replacement effect on the existing financial system. There are still problems in achieving this goal:

1. Bitcoin does not have the characteristics of a commodity’s yardstick.

2. The level of cryptocurrency payment is far below that of banks and Alipay.

3. Transparency and compliance issues are for further study.

Wish Weisha, like Satoshi Nakamoto, adopts the method of imitating, modifying, and innovating, creatively proposes the DW20 stable currency scheme, and perfects and realizes Satoshi Nakamoto’s three ideas from another angle. An encrypted currency, then a stablecoin, grows from a stablecoin to a standard currency like the U.S. dollar. DW20 is the yardstick for Bitcoin and combines with the chainless financial platform and Bitcoin to finally realize the goal of Bitcoin standard; without bubble lending, there will be no inflation, and the new financial ecology will become the cornerstone of a free, fair, and honest society.

Zhu Weisha named the project DW20; D.W. is the abbreviation of Dei Wei Pinyin, representing DAI WEI. It is hoped that DAI WEI will be responsible for developing a free and just society and realize their ideal of a generation of cypherpunks; 20 represents the transition from ERC20 to BRC20. DAI WEI has perfect identification and commemorative significance. It doesn’t take 10 years, people will naturally simplify DW20 to D.W., and humans will never forget the contemporary Prometheus who stole Skyfire: DW-DAI WEI.

3. Decentralized and community-driven projects

Decentralization is a core feature of modern cryptocurrency technology and the source of consensus value. Decentralized consensus plays a vital role in value transmission and circulation. If the DW20 decentralized standard currency is regarded as an independent system, the DW20 standard currency is decentralized and has no subject control like Bitcoin. Although Zhu Weisha designed the DW20 standard currency scheme, he did not declare intellectual property rights. All currency holders own the DW20 standard currency.

The chainless platform uses transparent centralization technology to realize the design of a decentralized platform, which has the complete characteristics of a decentralized system. It does not rely on underlying institutions or intermediaries to ensure smooth transactions. The DW20 transaction hash value is uploaded to the Bitcoin network to ensure stability and security, and the DW20 standard currency has the advantages of decentralizing encrypted currencies, such as consensus on the entire network and non-tampering. The DW20 standard currency is a digital asset whose development, maintenance, and direction are determined mainly by the DW20 community. This model is typically democratic, with decisions based on community members’ opinions and votes rather than being centralized. DW20 community members are directly and indirectly involved in community governance, and community members are encouraged to contribute to all aspects of the project, such as decision-making, development, marketing, and even troubleshooting.

4. Evolved community governance mechanism

Community governance is to delegate community governance to token holders. Community members can participate in community decision-making, voting, and proposals according to the number of tokens they hold. This kind of community governance is different from enterprise-level management. It is a flat organization, free to come and go, which reduces the pressure of management on technical personnel, and facilitates the creativity of participating members. The cost of community management is low and contains excellent energy. For example, in the Gamestop case, “Retail Investors War Wall Street,” retail investors gathered on the well-known forum Reddit and collectively bought the stock of GameStop, which caused the company’s stock price to soar by more than 2000%, triggering a series of short squeezes, leading to Some Wall Street hedge funds were harvested instead.

Zhu Weisha believes that community governance is one of the success factors of cryptocurrencies. In projects that require public participation, community governance is a more advanced form of organization than corporate governance, thus forming a community civilization. The Bitcoin community is the first-generation cryptocurrency technology community, fully autonomous, and now there is no top decision-maker; Ethereum is the second-generation cryptocurrency community, which introduces the operation mode of the Ethereum Foundation (Ethereum Foundation) and Incentivising the prosperity of the Ether ecosystem by issuing tokens. Ethereum Community (EthereumCommunity) is the core community of Ethereum, organized by relevant stakeholders such as Ethereum developers, miners, users, and investors. It provides various governance models and votes on and executes various governance proposals.

The community governance of the DW20 Decentralized standard currency mainly refers to the community governance mechanism of Ethereum. Still, it will maintain an open attitude, continue learning and optimizing the successful experience in other cryptocurrency project communities, and absorb human civilization’s separation of powers, power supervision, balance, etc., achievements. Similar to the operation method of the Ethereum Foundation, the DW20 team plays a more prominent role in the first stage of the community because this stage requires team maintenance, and the main work is 4.82% token distribution. The purpose of these token distributions is to incentivize user participation. The team is the executor, and the community has the highest decision-making and supervision power. The DW20 community hopes to build an inclusive and open community. Community members can make proposals. The community must thoroughly discuss significant issues, and then the community makes decisions and votes. For example, in theory, the currency issuance rules cannot be changed, but we cannot know in advance how many of the 60 million Bitcoin accounts are dead accounts. What if there are only 30 million Bitcoin live accounts? Wouldn’t it be stuck when issuing coins? When this happens, it is necessary to adjust the monetary policy so that the airdrop can go on smoothly. The team proposes a plan to be voted on by the community. Believe in the correct judgment of the community and believe in democratic decision-making.

Chapter 2 A Currency of Freedom and Justice

1. A meme coin (community coin)

In the first phase, DW20 is a meme coin. After the airdrop, DW20 has as many or even more users as Bitcoin. Bitcoin users are high-quality encryption users. Bitcoin users have a deeper understanding of currency, consensus value, and cryptocurrency technology. More importantly, Bitcoin users will support a free and just currency. The vision of the DW20 coin is to be a free and just currency with a payment function.

The nature of DW20 in the stage of meme coin is different from that of POW “mining.” The standard to measure its valuation is the number of participants (community). In the Internet era, the value of a registered user is almost $50. Business valuation perspective, DW20 coins can be compared to Doge coins and SHIB coins. Their value lies not in the cost of “mining” but in the number of people in the community. The community development experience of Doge and SHIB coins is worth learning from DW20 coins.

DW20 token is the most challenging period in the stage of meme coin, and it needs to gather community consensus. There is value in consensus; the greater the consensus, the greater the value. It must be noted that this stage is the same as Bitcoin, and consensus building mainly depends on narrative. In the Meme stage, DW20 has a grand narrative that becomes the Bitcoin standard’s ruler, is highly compatible with Bitcoin ideas, and will gradually form a DW20 community culture of freedom, openness, and justice.

For thousands of years, the ruling class has used its verdict power to invisibly exploit the working people through inflation with currencies such as pounds sterling, dollars, leather money, platinum coins, and Jiaozi. To use DW20 coins is to support ourselves and oppose tyranny and deprivation. That is the core idea of DW20 community culture.

2. A Stablecoin

After the first stage of the most challenging development, the second stage reached the stablecoin era of DW20, the step of extensive transactions. With the expansion of applications and the gradual growth of consensus, DW20 will gradually stabilize at around US$1, and the price fluctuation will narrow progressively. Since Bitcoin can be mortgaged to issue DW20 tokens, DW20 tokens have a market value of at least 210 billion U.S. dollars at that time, ranking third in the current currency circle.

The most commendable thing is that the value of DW20 coins not only comes from consensus but also has application value. The volume of DW20 currency is not as good as that of the U.S. dollar, British pound, and other legal currencies, but it has been freely circulated in the world, and it shows the advantage of no subject. The issuance of legal currencies such as the U.S. dollar and the British pound is controlled by the central bank, and it is inevitable to move towards the road of over-issued banknotes. DW20 does not have an issuer similar to the Federal Reserve. It relies on the automatic adjustment mechanism of the market to issue money, which is more sensitive to the market than the Fed’s issuance mechanism. The Federal Reserve adjusts the currency at most monthly, while DW20 is issued at any time, and the interval may be less than one minute.

Legal currencies such as the U.S. dollar and the British pound are credit currencies that require the endorsement of state power, but the DW20 has the endorsement of Bitcoin and is an asset currency. Like gold, it does not need state power endorsement, and the asset value exists naturally. DW20 represents the value of Bitcoin, and there is no worry about depreciation. Drinking milk tea on the streets of Yangon, Myanmar, vendors are willing to charge DW20 coins; renting a car at Hertz in Washington, USA, the car rental company is willing to accept DW20 coins; at the Khalidiya Palace Rayhaan by Rotana in Abu Dhabi For accommodation, the hotel is willing to accept DW20 coins; for dining at the Fook Lam Moon Hotel in Hong Kong, the hotel is willing to accept DW20 coins.

3. A standard currency (world currency)

The third stage is the era of the standard currency of DW20. Gradually, people are more willing to accept DW20 coins and are no longer willing to accept legal currencies such as U.S. dollars and British pounds. Because they are very sure that DW20 coins will not depreciate, just like the scale of a ruler will never change. The solidification of the DW20 consensus has been unparalleled, and the DW20 coin has become a measure of value. When people think of how much something is worth, they think of how much it is worth in DW, how much a ticket for a trip to Mars is worth in DW, how much a simulated robot is worth, and how much the total amount of this transaction is in DW.

People think of legal currencies such as the U.S. dollar, British pound, and Japanese yen, as we think of ancient Jiaozi, leather money, etc., without the slightest memory. There is no monetary exploitation for the working people, and the monetary power of the ruling class has been firmly locked in a cage. It is a beautiful new world. DW20 coins have become the most popular payment currency. When drinking milk tea on the streets of Yangon, Myanmar, vendors only charge DW20 coins; when renting a car at Hertz in Washington, USA, the car rental company only charges DW20 coins; For accommodation at Khalidiya Palace Rayhaan by Rotana, the hotel only accepts DW20 coins; for meals at Fook Lam Moon Hotel in Hong Kong, the hotel only accepts DW20 coins.

Chapter 3 System Functions

1. DW20 standard currency runs on a chainless platform

DW20 is imported into the chainless system for token distribution after issuance with BRC 20 protocol.

DW20 has a centralized payment speed, which solves the payment problem existing in the blockchain. The payment time of the blockchain cannot compete with the centralized payment time in any way. Therefore, in cryptocurrency, among centralized exchanges and all second-tier projects, all projects involving payment are more willing to adopt a centralized method. Satoshi Nakamoto also believes there must be a “sub-node” conversion in terms of payment.

The chainless platform is a highly secure circulation and settlement platform. The general ledger adopts the most advanced cluster technology to form a cluster system that can be expanded arbitrarily. The multi-cluster system is distributed worldwide and will not go down. The confirmation of the entries of the general ledger and the sub-ledger adopts the data format of Bitcoin, and its transmission process is encrypted. The general ledger structure of the chainless system is not a blockchain, nor a directed acyclic graph, but an index ledger. The chainless system is a reconciliation system. The three parties in the chainless system reconciliation are the sender, the receiver, and the system. And it supports anonymous transfers and does not expose privacy to unrelated third parties. The latest transaction results can be checked in the general ledger, and the past transaction records can be checked in the running account. The most important thing is that in transferring the user’s assets on the chainless platform, the system’s role is only to verify.

2. Put the chainless DW20 onto the Bitcoin system

DW20 is issued according to the BRC20 protocol. BRC20 is the format standard for homogeneous tokens issued on the Bitcoin system. DW20 currency transactions are verified and accounted for by a chainless system. The accounting method is not the competitive accounting method commonly used in cryptocurrencies. , but unilateral bookkeeping; but the hash value of the journal composed of blocks is stored in the segregated witness area of the Bitcoin system, which uses the credit of the Bitcoin chain to replace multi-party bookkeeping, and also through the Bitcoin system for The chainless system provides credit enhancement.

Using the public chain as the root of credit expands the credibility of unilateral bookkeeping. As a reliable root of credit, the Bitcoin system provides machine credit confirmation for the authenticity of the second-tier ledger and NFT through the storage of hash values, showing unlimited imagination. The chainless system is such a second layer. The chainless DW20 currency payment transaction is first completed by the chainless system, which quickly confirms the payment, and then uniformly packs the data hash value into the Bitcoin system. Together with the chainless system, DW20 and the Bitcoin system will constitute a complete Bitcoin-based financial system.

3. Relevant anonymity and security

The DW20 stable currency is first issued to the chainless wallet, which supports real-name and anonymous. For anonymous external transfers, the system will first verify that the private key and signature are correct and send text messages or emails to the user for secondary verification. Users can choose the photo or text authentication if they do not want to expose their privacy through SMS or email verification.

If a cryptocurrency is close to paper money, it must have the function of anonymity. Anonymity is important for privacy protection. You don’t necessarily want others to know your salary flow; you don’t want others to know where and how much money you spend; this is related to individual safety and freedom. Of course, you can also choose your real name. After the DW20 real-name authentication, all projects on the chainless platform are applicable, and you don’t need to register individually. Real-name authentication can also be used for anonymous transactions, which is no different from the anonymous transactions of cryptocurrencies.

The chainless system advocates real names because the real world is a world of real names. Anonymity is a kind of privacy protection; privacy is not a secret, and the right to disclose lies with the user. The privacy classification of the chainless platform better reflects the spirit of the “Cypherpunk Manifesto.”

Chapter 4 Currency Issuance and Economic Modelling

1.  Distribution of DW20 coins

The DW20  issuance code is DW20.

A total of 210 billion tokens are issued in the first phase, 10,000 times the number of bitcoins. The first phase mints DW20 and airdrops it for issuance, never issuing additional tokens.

The second phase is a collateralized bitcoin issue of DW20, market regulated and never limited. This issuance continues throughout the Bitcoin standard era. At that time, the value of Bitcoin will gradually correspond to the total wealth and economic growth of humanity, which is measured in trillions of dollars. That is why collateralized issuance is the primary model for DW20 issuance. In comparison, the number of issues in the first phase was tiny, and in the first phase, all the customers of Bitcoin became the lucky ones in the airdrop.

In the first phase, 210 billion DW20 are minted at once and placed in DW20 addresses in the chainless system, with DW20 indicator showing the total number and the number issued. The tokens are redistributed into four addresses. All four of these addresses are multi-signature addresses.

– User address for token allocation: 80 percent (168 billion)

– Stabilisation Fund address for token allocation: 10% (21 billion)

– Token allocation to team addresses: 5.42% (11,382 million)

– Tokens allocation to market activity address: 4.58% (9,618 million)

Bitcoin experts estimate that Satoshi Nakamoto holds 1.14 million bitcoins, which is 5.428%, so the DW20 standard currency allocates 5.42% to the team accordingly. The team accounts for a lower percentage of the overall allocation than the Ether Foundation.

2. Airdrops

2.1 Airdrop to 50 million Bitcoin addresses

80% of DW20 was issued by airdrop, totaling 168 billion. The airdrop object is bitcoin address holders; the current bitcoin has a total of 60 million non-zero addresses, or so; the address that meets the age and holding requirements is estimated to be about 50 million, with reference to the bitcoin is issued in half, the DW20 issuance according to the 30 cycles and shrinkage of the issuance.

“Registration is mining,” anonymous, registered customers and real-name registered customers can get airdropped DW20 tokens based on a Bitcoin address of $100; depending on the cycle in which they are located, the number of tokens received varies. However, real-name registrations also get the equivalent of $50 for the chainless platform coin CLY and entry into the DW20 token raffle. Real-name registered users without a Bitcoin address can only receive DW20 tokens equivalent to $50.

It is worth mentioning that the value of the customers is the same regardless of the airdrop cycle, but the system’s value rises with the number of clients. In other words, the coin giveaway is decreasing. For example, if DW20 tokens start the first cycle at 0.004 cent, 200,000 DW20 tokens are sent; when the coin price grows to $1, 100 DW20 tokens are sent.

2.2 Airdrop after 50 million Bitcoin addresses

After the airdrop of 50 million addresses, we will only add new real-name registrations to give away coins, and only in lottery mode. The envisioned lottery mode is that everyone will have three chances to win. The winning surface is 10% each time. That uses the 4.48% portion of the promotion’s reward.

Anticipate that active accounts may not be as expected or other market changes; community discussions and proposals to adjust the rules of issuing coins will make the airdrop more smooth and attract more DW20 users.

3. Lock-up Mechanism

3.1 Determination of Lockout Time

Since Bitcoin can generate addresses randomly, to be fair, we stipulate a lockout staging for different coin holdings and holding times. address age refers to the length of time an address has been held from its earliest Bitcoin address generation to the time of its DW20 airdrop application. address age counts as one point for an entire year; if more than one year has elapsed, 0.08 points are credited for each month more than one year, and no points are credited for periods of less than one month. One bitcoin in the account address counts as one point. Less than one Bitcoin is also scored according to the nominal value, and the scoring unit is reserved for two decimals. The coins at this address may be variable throughout the period. We count the number of coins held at that address on the date of application.

Reaching 50 points is called a Gold account; going 25 points is called a Silver account; similarly, 12.5 points is called a Bronze account; 6.25 points is called an Iron account; 3.125 points is called a Tin account; and a cardboard account is only possible if you have reached 0.5 points or more. Unlicensed accounts are unlicensed customers who do not meet the above standards. Register with your real name to receive DW20 airdrop equivalent to US$50. A newly registered user with a Bitcoin address, whether purchasing Bitcoin on a centralized exchange or the DEFI platform, must transfer to his own Bitcoin chain address and maintain non-zero addresses in the Bitcoin system at least 5 Months and above.

Gold requires an address with two years of coinage.

3.2 Release of lockout

Lock-up means that the airdropped coins cannot be sold immediately and must be released linearly according to the lock-up time.

•Linear release: refers to the total amount of coins obtained divided by the limited number of days to determine the amount that can be released daily. Different medals have different amounts that can be released every day. Release evenly throughout the day.

•Release rules for air-dropped coins:

Gold 50 points are released linearly for 30 days;

Silver medal 25 points of 60 days linear release completed;

Bronze 12.5 points for 90 days linear release completion;

Iron medal 6.25 cents 120 days linear release completed;

Pewter 3.25 points 180 days linear release completion;

Solitaire 0.5 points 270 days linear release complete.

Unlicensed customers can be released linearly within 270 days.

•The number of DW20 tokens awarded is not related to the customer medal, which determines the conditions of release.

•Release date is calculated from the day of listing on the exchange.

4 The Stability Principle of DW20 Coin

4.1 The Role of the stabilization fund in the first stage

There is a stable fund for DW20 coins. In the first phase of the fund, the independent market maker invested 10 million US dollars, Together to form a market-making fund, meaning that 21 billion DW20 coins are worth 10 million US dollars, and the price of one DW20 coin is 0.05 cents. First phase is community consensus people organise their own subscriptions and manages the fund. The team signs a VAM agreement with the market maker, and fund managers are selected through global auditions from the second phase. The management fee is withdrawn according to 1%-2%, mainly stipulated through the VAM agreement. The market value of the fund should be growing continuously. It is estimated that the market value of the first period will reach 200 million US dollars. When the market value of the second period comes to 1 billion US dollars, the market value of the third period will get 3 billion US dollars.

In the first stage, the price of DW20 currency will follow market fluctuations, reflecting market demand and expectations. The primary function of the DW20 currency market-making fund is to make the market; it mainly prevents extreme fluctuations in the price of DW20 currency, making the currency price much higher or lower than the intrinsic value of DW20 currency. The DW20 Coin market-making fund protects the development of DW20 coins, relying on the gradual growth of the market; the expected price will increase from 0.05 cents to 1 dollar, a 2000-fold increase in 2-3 years, and finally complete the transition to a stable currency.

4.2 The second stage mortgage Bitcoin market making

In the second stage, the DW20 currency entered the process of stablecoins. External funds should gradually withdraw from the market-making fund, and the market-making fund will become a guaranteed fund. The DW20 currency and US dollar-related assets in the hands of the fund will maintain a “50%: 50%” ratio.

If DW20 coins are issued without collateralizing Bitcoin, DW20 coins should rise with the rise of Bitcoin, just like the rising logic of BCH and LTC. The second is to determine the price according to supply and demand. If the price is constant, the issuance of DW20 coins will be increased. Mortgage issuance is to expand the distribution of DW20 coins.

Since DW20 coins are not linked to the economies of various countries, mortgagers judge the value of DW20 coins based on the growth of the number of customers and transaction volume. According to Metcalfe’s theorem, the value of the DW20 system is proportional to the square of the number of DW20 coin users. And the issuance of DW20 currency has a linear correspondence with economic growth. Speculative US dollar market-making funds are more than 200 billion, and daily transactions are 3 trillion, corresponding to more than 30 trillion of the total currency issued by the Federal Reserve. DW20 coins belong to the base currency, like the US dollar. Therefore, if the entire market of DW20 coins is 210 billion and speculative funds for market making are 1.4 billion to 1.5 billion, it can be priced.

4.3 The Bitcoin Standard Ruler in the Third Stage

The sign of the third stage is that the volatility of DW20 currency is smaller than that of the US dollar, and there is no depreciation in the price comparison of bulk commodities. At this time, the market naturally uses DW20 coins as the anchor. The original “50%: 50%” ratio between the DW20 currency and the US dollar in the hands of the fund began to change. DW20 still accounts for 50%, and the other 50% corresponds to US dollars and BTC. Ultimately, the fund maintains the “50%:50%” proportional relationship between DW20 and Bitcoin. At this time, the DW20 standard currency ruler is established.

5. Financial characteristics of DW20

5.1 The Role of basic funds

Banks keep reserves for credit payments. The DAI narrowly missed a credit default in its early days and finally relied on external forces to successfully resist the crisis. Therefore, when the DW20 standard currency is still developing, it needs basic funds to increase credit.

Assuming DW20 has no basic funds (initial liquidity tokens) but is only issued by a mortgage way, it is equivalent to the liquidity drying up when all mortgages are recovered. But with 210 billion US dollars of basic funds, liquidity will never dry up. And through the airdrop of Bitcoin users to decentralize the issuance, it is truly distributed.

5.2 Basic Fund and DW20 standard currency Attributes

DW20 currency is a payment tool and a price gauge. As a standard currency attribute, DW20 currency must be flexible. If the standard currency issuance rate equals economic growth, the currency can be used as a weight and measure. As the standard currency, the output of gold is limited, but with the rapid economic development and economic deflation; as the standard currency, the government controls the issuance of the legal currency, increases the currency issuance to stimulate the economy, economic inflation, and the measurement scale becomes smaller. Both monetary systems, gold and fiat currency, have problems. The DW20  is a standard currency with a negative feedback mechanism in the automatic control system and has the automatic adjustment function of the market. The so-called adjustment requires a market adjustment margin, just like a machine needs lubricating oil. The $210 billion basic fund has no profit indicators, which is the lubricant of the Bitcoin DW20 payment system.

Chapter 5 Related Risks

1. Team risk

The DW20 coin team self-destructed the Great Wall, causing the DW20 coin project to fail. The interests of the DW20 coin team and the DW20 coin project are consistent. The DW20 coin team owns 5.42% of the project interest. There is no DW20 coin team deliberately destroying the DW20 project; the DW20 team does have certain powers, especially 4.58% of the token distribution rights, but The members of the DW20 team did not choose to be anonymous, and the operation was open and transparent as much as possible. The DW20 team did not dare to do evil. The direction of community governance is to limit their power consciously. All community members vote and make decisions. The DW20 team cannot do evil.

2. Technical risk

The chainless platform is a brand-new platform. The GreatFree, used for basic development, is a new language not tested in actual combat. Technically, there will be problems and loopholes in the chainless system. It needs to be improved while running DW20. The fact is that we have two plan, a one-person system and a public chain, and it may be more realistic to choose one of them. However, if too many product failures cannot be resolved, users will be lost, consensus will decrease, and the project will fail. The product growth is not as good as expected, and the Bitcoin DW20 standard assumption is too optimistic; DW20 coin’s similar excellent competitors beat DW20 coin in the market competition.

3. Legal risk

Many countries have legislated to restrict or ban cryptocurrencies in the real world, but the laws are illegal. After 1933, Nazi Germany formulated and implemented laws that violated human rights through legal procedures. The Nazi thugs argued in the Nuremberg Trial that they were executing laws and orders. “criminal” justification: “The genocide of the German fascist party, the ‘laws’ and ‘statutes’ that trampled on civil rights are ‘evil laws’ that are completely contrary to the most basic morals and human nature of human beings; in 1934, the United States also enacted ” The Gold Reserve Act (Gold Reserve Act) prohibits private ownership of monetary gold, and the measures implemented give the U.S. government special powers to seize gold from Americans; DW20 currency abides by a natural law that manifests absolute axioms and a theory of justice of ultimate value.

Afterword

Bitcoin standardization is a process and cannot be accomplished overnight. We need to work together. You are welcome to join the DW20 standard currency community, and we will work together to build a beautiful new world.

The central banks of the United States, Europe, and other countries continue to dilute the labor value and commodity value of the hardworking people by printing legal currency, Which has embarked on the road of depreciation since the day they were born, and they have gone further and faster on this road. With the issuance of additional legal tender, one US dollar in 1923 is not equivalent to one US dollar in 2023 but is equal to more than 90 US dollars today.

In the beautiful new world of Bitcoin, this monetary exploitation disappears. Putting the government’s monetary power in a cage, the government cannot delay the crisis by printing money. No matter when and where 1 DW20 standard currency. always equals 1 DW20 standard currency.

From the Iranian Plateau to the Korean Peninsula, from the Andaman Sea to the North China Plain, the world currency dollar has never set foot in places. In the beautiful new world, the DW20 standard currency reaches places where the dollar can go and appears where the dollar has never been able to go. If you have enough imagination, in the future, humans will immigrate to Mars like Elon Musk, and the DW20 standard currency will be the daily payment currency on Mars. Yes, if there is no tyranny and currency exploitation on Mars, DW20 standard currency is the most suitable payment currency because the vision of DW20coin is to become a free and just currency.

For the complete white paper, please refer to “Implementation of DW20 decentralized standard currency.”

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