Web3.0 Chainless Financial Platform White Paper

——Open, Credible, Safe,tamper-proof——

The end of the decryption white paper series

Congratulations on reading to the end. The Decryption White Paper series is a companion to the Enter the White Paper series. Enter the White Paper is a detailed explanation of the essential concepts of the Two white papers. The chainless white paper is written as a reference book, and the directory identification is very detailed. There is a lot of content in the two white papers that need to be implemented step by step. The original version is in Chinese. If there is any ambiguity in the English version, the Chinese version shall prevail.

Authors:Zhu Weisha、Li Bing、Lu Tiegeng

Acknowledgement:  Zhang Hai、Tang Wanchuang

Table of Contents

  • Preface
    • Brief
    • 0.1 Pain point problem
      • 0.1.1 The concept of Web3.0 includes the idea of blockchain
      • 0.1.2 The Bitcoin system itself is not suitable as a payment system
      • 0.1.3 Losing coins is the second most significant pain point for Bitcoin
      • 0.1.4 The high cost of bookkeeping is the third biggest pain point
      • 0.1.5 Other major defects
      • 0.1.6 The Web2.0 results must be inherited
    • 0.2 Bitcoin’s thought contribution
      • 0.2.1 Web3.0 Standard
      • 0.2.2 Machine trust standard
      • 0.2.3 Bitcoin creates new types of production relation
    • 0.3 New threshold for Web3.0
      • 0.3.1 The new logic of the four judgment project
        • Originality trust
        • Community governance trust
        • Influence Force trust
        • White paper trust
      • 0.3.2 First mover advantage
      • 0.3.3 Summary of competition threshold differences with web2.0
    • 0.4  A chainless system that takes the route of inherited innovation
  • Chapter 1 Example of Application and Structure of Chainless system
    • 1.1 Introduction to the GreatFree programming technology
    • 1.2 The overall structure of the chainless system
      • 1.2.1 Composition of the chainless system
        • General ledge
        • Sub-ledger
        • Structure diagram and description of chainless system
      • 1.2.2 The composition of the general ledger
      • 1.2.3 The composition of sub-ledger
      • 1.2.4 Transaction process
        • Internal transaction
        • Transfer in
        • transfers out
    • 1.3 Function realized by the chainless system
      • 1.3.1 Indexing function
      • 1.3.2 Verification function
        • Verify that the external transfer data is correct
        • Verify whether the ordinary transaction is correct
        • Verify that the total amount of money in the general ledger is consistent with the amount of money in the sub-ledge
      • 1.3.3 Anonymous function
      • 1.3.4 Query function
        • General ledger query
        • Sub-ledger query
      • 1.3.5 Storage function
        • Storage of the general ledger
        • Subledger Storage
      • 1.3.6 Notification function
      • 1.3.7 Alarm function
      • 1.3.8 Message function
    • 1.4 Multi-sign and multi-backup secure wallet
      • 1.4.1The pain points that need to be solved
      • 1.4.2 Multi-signature and multi-backup wallet implemented based on cluster technology
      • 1.4.3 Implementation of the schem
        • Private key replacement
        • Online backup
        • Multi-signature verification
        • Chainless payment classification
        • Track the transfer process
        • Synchronize data after the result is confirmed
        • Synchronize data for temporary storage
        • Connection with centralized devices
        • The relationship between the leading mobile phone and other devices
        • equipment replacement
        • Inheritance procedure
    • 1.5 Examples of Smart contracts and application for chainless system
      • 1.5.1 Stablecoins issued by fiat endorsement
      • 1.5.2 Introducing the Web3.0 Financial Ecological Platform of Contract Accounts Design
      • 1.5.3 Break the barrier of Ethereum smart contracts
      • 1.5.4 How to implement the Rollup
      • 1.5.5 How to implement the UNISWAP
        • The specific implementation method
        • Virtual liquidity pool design
        • Advantages of virtual flow pools
      • 1.5.6 How to realize distributed listing transaction
      • 1.5.7 How to connect with centralized exchange transactions
        • External transfer as an chainless system
        • The centralized exchange opens an account in the chainless system
        • The centralized exchange opens an account in the chainless system, and the user has a stable currency of the same currency
        • Centralized exchanges open stablecoin accounts and mortgage models in the chainless system
      • 1.5.8 How to implement Aave (21)
      • 1.5.9 How to implement aggregation
      • 1.5.10 Implementation of the derivative tools
      • 1.5.11 Implementation of ecological tools
      • 1.5.12 Big data and artificial intelligence analysis
      • 1.5.13 Payment implementation of the Internet of Things IOT
      • 1.5.14 Development of smart contract templates
      • 1.5.15 Block transaction tracking program
      • 1.5.16 Realize the docking with traditional finance
    • 1.6 A summary of trust mechanisms and progress
    • 1.7 Progress beyond the blockchain – Web3.0
  • Chapter 2 Incentive
    • 2.1 The value of chainless coins
      • 2.1.1 Features of chainless coins
      • 2.1.2 The Value narrative of chainless coins
    • 2.2 Allocation of chainless coins
    • 2.3 The “Mining” incentive method of the user community
      • 2.3.1 newcomer incentive
      • 2.3.2 User model (model without coin price adjustment)
        • Determination of the user cycle and the number of users in each cycle
        • Coins current issue model (model without coin price adjustment)
        • Coins received for new users
        • Total user value Vx
        • The relationship between user value and coin price p
      • 2.3.3 High- speed project model (model with coin price adjustment)
      • 2.3.4 Low speed project model
      • 2.3.5 Summary of the three models
      • 2.3.6 Reward for contributors
        • Award for strong contributor
        • Reward ideas for other promotional activities
        • Reward token bookkeeping time
    • 2.4 Users community incentive method to adjust mining difficulty
      • 2.4.1 Lock-up mechanism
      • 2.4.2 Repurchase mechanism
    • 2.5 Income distribution of chainless system
      • 2.5.1 Project income
      • 2.5.2 Income allocation
        • Coin sending policy based on user activity
        • Trading Strongman Award
      • 2.5.3 Dividend right
    • 2.6 Incentive scheme of ecological community
      • 2.6.1 Incentive according to the task
      • 2.6.2 Look for loopholes incentives
      • 2.6.3 Project Proposal Incentive
      • 2.6.4 Programming rewards with greatfree
      • 2.6.5 Ecological app support
      • 2.6.6 Buy ecological products to get coins
      • 2.6.7 Discount purchase coins
      • 2.6.8 Lock-up period
    • 2.7 Smmary
  • Chapter 3 Community Governance and Indirect Incentive
  • Chapter 4: Composition and Development Methods of Project Personnel
  • Appendix White paper citation



Web 3.0 Chainless Financial Platform System is referred to as the chainless system. This white paper consists of six chapters.

The first chapter is about the chainless system structure and examples of application ideas, proposing for the first time The third form of the ledger that is different from blockchain and centralized for Web 3.0. Furthermore, the innovation offers the composition method of a safe and easy-to-use wallet.

Chapter 2 is about incentives, mainly about direct incentives and the principle of “participation means mining”; Improved where the blockchain is unreasonable regarding direct incentives.

Chapter 3 is about governance and indirect incentives. DAO can be used for ecological community governance, which is unsuitable for the user community construction of Web 3.0. The indirect incentive is a new way to solve the historical contribution of users; For the user community governance, the new method is also the first of this article.

Chapter 4 is the composition and development method of the project personnel; Take on the experience of Ethereum, improve the problem of inconsistency between nominal and actual work at Ethereum Foundation; practice Bitcoin’s idea of integrating shareholders, employees, and users.

Thanks and the citation appendix follows it.

Important views of this article: Web 3.0 is an upgrade to the blockchain concept, blockchain is not the future, but Web 3.0 is the future.

0.1 Pain point problem

Compared with the development of the Internet, blockchain development is slow.

Web 3.0 is proposed as the profound consideration of industry elites on the slow development of cryptocurrencies; the cryptocurrency field must be refined and corrected with new concepts, making it have the effect of upgrading Web2. The understanding of Web 3.0 is also deepening. Describing our conclusions here.

0.1.1 The concept of Web3.0 includes the idea of blockchain

The blockchain ledger is just an infrastructure for Web3.0; The scope of a blockchain ledger is very narrow, and mindlessly expanding the use of blockchain ledger is wrong; In practice, Projects using blockchain ledger technology cannot compete with similar Web2.0 projects in terms of performance indicators.

0.1.2 The Bitcoin system itself is not suitable as a payment system

“Mining” is a means of producing or issuing cryptocurrency, which is very cleverly designed; Compared with “mining,” there is no innovation in the accounting part. The Bitcoin system can be used as a transfer tool and is unsuitable for payments. If it must be used to pay, it must endure the pain of its delay and the uncertainty of price fluctuations.

Around the most significant pain point of payment, the blockchain elite has been struggling for more than a decade; As of today, no other solutions are payment systems that can compete for Web 2.0. Without technically surpassing the Web 2.0 payment system, Web 3.0 will not be successful! There is no possibility of a replacement for Web 2.0’s financial platform.

0.1.3 Losing coins is the second most significant pain point for Bitcoin

Losing coins is the second biggest pain point for cryptocurrencies after payments, Beyond banking security and automatic inheritance of the asset to conform to the requirements of Web 3.0.

0.1.4 The high cost of bookkeeping is the third most significant pain point

Bookkeeping consumes too many resources, so the cashier’s “salary” is sky-high. It is also the third most significant pain point that is often criticized. POS helps to alleviate this problem, but improvements are limited, and the cost of bookkeeping is much higher than that of centralized bookkeeping.

0.1.5 Other major defects

There is a difference between the General consensus and the local consensus. Therefore, extending the local consensus to the General consensus is wrong.

Smart contracts are neither cleverness nor smart and cannot be directly upgraded once they are born.

If a cryptocurrency Wallet does not have the ease of use of Webb 2.0 centralized projects, it is impossible to promote on a large scale.

0.1.6 The Web2.0 results must be inherited

The evolution of history must be inherited and developed, and the Internet is no exception. In short, Web 3.0 must inherit the achievements of Web 2.0 and the Internet. Otherwise, it is not possible to become mainstream.

0.2 Bitcoin’s thought contribution

The emergence of Bitcoin blooms with the light of liberalism, and its ideological value is more significant than technical value and technical value more than ledger value. Now the mainstream applications are based on the blockchain ledger, and Although the current ledger has a considerable influence, it is far from the ideological value of Bitcoin liberalism.

0.2.1 Web3.0 Standard

The evolution of the Internet is from web1.0,2.0 to 3.0. What is Web 3.0? We quote the view of market people to distinguish from the customer’s perspective; generally speaking, 1.0 is reading, 2.0 is reading and writing, and 3.0 is reading and writing and possession. Web 3.0 needs to own its data, but this is only a necessary condition, not a sufficient and necessary condition.

The following five points are our refinement of another angle of Web 3.0, which is relatively more perfect.

Data Sovereignty in the People,

The data is transparent and credible,

people contribute resources,

People share their interests,

People participation in governance.

President Abraham Lincoln delivered a speech at Gettysburg On 9 November 1863. “Government of the People, by the People, for the People,” 300 Words became one of human history’s greatest speeches. Today, President Lincoln’s dream will come true in the data age: the data three principles of people. Bitcoin is an excellent practice of this thought.

The government serves the people, not that it controls them, people. Any system should follow this principle.

0.2.2 Machine trust standard

Absolute de-trust does not exist. Even paper money are intermediary, and people have to trust it. Modern society cannot function without trust at all. The machine trust created by Satoshi Nakamoto implies trust in a third party, just like trust in banknotes in hand, and it also implies trust in the central bank.

Decentralization and de-intermediation mean that the control of “money” is in our hands, but we must trust the issuer of “money.” The issuers of Bitcoin are miners (mining pools) and core programmers who must be trusted not to be evil or can’t be evil. Ultimately, we still need to trust it. Absolute distrust cannot be achieved, But the fewer people you trust, the better; the fewer trust links, the better; the safer trust links, the better. The less trust, the less risk, and the more value.

We have to need trust, and we have to have checks and balances. The less trust required, the fewer checks and balances are needed. If this check and balance mechanism is not automatic, it is not machine trust. The chaos of cryptocurrency lies in the lack of understanding of the relationship between automatic trust and checks and balances. Looking at Bitcoin, automatic checks and balances exist.

Machine trust is the factual standard made by Bitcoin and Satoshi Nakamoto’s trust standard can be summarized as seven:

The fewer people you trust, the better.

The fewer trust links, the better.

The safer the connection of trust is, the better.

The longer the trust has been experienced, the better; credit takes time to accumulate.

De-control; your data by your hold.

The account ledger is open and transparent and cannot be tampered with.

The trusted party has an automatic checks and balances mechanism.

There is actually another axiom: the code is the law. Therefore, modifying the code according to the rules is the underlying consensus of the machine’s trusted standards.

A theorem is derived that the system does not go down.

0.2.3 Bitcoin creates new types of production relation

Satoshi Nakamoto has created a new production relationship with Bitcoin as a link. Programmers, computing power, and users integrate to develop and realize a new production relationship. Its value is the “Watt steam engine” in the information age. The community’s development breaks through traditional companies’ boundaries and requires new forms of social organization to fit new production relations.

Bitcoin is a recumbency and making money project. In the era of recumbency earn, robots work; this is the goal of Web 3.0. It is also the goal that the chainless system cooperates with the family cloud to achieve.

0.3 New threshold for Web3.0

The open source program lacks patent protection, which determines a different competitive environment from Web 2.0.

Imitation is easy; dozens of them, out at once, are very common. So how can blockchain projects survive in such a competitive environment?

The key is still, who does the market trust? The result of cryptocurrency de-trust is not the need for no trust but a new trust judgment mechanism that Web 2.0 does not have.

0.3.1 The new logic of the four judgment project Originality trust

Others copy the code, and the understanding of the code is not as good as the original team. For the program bomb, the latecomers do not understand, prone to attack loss.

Market conclusion: the original code is more reliable than the imitation code.

Who do people choose for a similar project? You can choose the reliable one without hesitation. It is the first-of-its-kind effect in cryptocurrency, including the time-trust effect. We observed that the top dozens of blockchain projects ranked by Coinmarketcap are mostly innovative, in addition to the stablecoins and bitcoin imitation projects. More emphasis on originality is a major feature of Web 3.0. In other words, not the originality project is not easy to grow big.

The Internet has one enterprise-dominated phenomenon in one of its sub-sectors, which has not changed in Web 3.0; Because of the coin issuance, the success probability of the first project is high than in Web 2.0. Web 3.0 has its specific scope and does not entirely cover Web 2.0, but many similar projects will compete, especially in the financial sector. Ultimately, web 3.0 and Web 2.0 projects will go head-to-head in the Internet arena. The confrontation between totalitarianism and democracy; Web 3.0 has an advanced nature of production relations and maybe Dimensionality reduction strike to similar Web 2.0 projects, which I am very much looking forward to. Community governance trust

Community is the advantage of Web 3.0, and it is easy to distinguish between company and community projects through the core team staff size. For example, the Netflix core team (company) with the same market value has 10,000 people, YouTube has 1,000 people, and Ethereum has fewer than 50 people. Good community governance is a good Web 3.0 project. More than 80% of cryptocurrency projects do not use the community well; it only uses blockchain ledger technology. Need to observe the project level of understanding and use of the community because there is no community, no Web3. Influence Force trust

Web 3.0 emphasizes democracy. It’s ridiculous that celebrities and celebrity teams are more influential than Web 2.0. The reason is that Web 3.0 is still in its early stage, and many projects are like seed rounds of venture capital. According to venture capital rules, a seed round looks at people, A round looks at people and a model, mainly looks at people. The Web 3.0 mature projects are only Bitcoin and those Bitcoin imitators. When a vast and uncertain project issues coins, it is equivalent to the listing. How to judge the quality of the project, the traditional valuation methods and data are not enough to reflect the value of the project; Retail investors are more incapable of judging. For retail investors, it is easy to judge a person. Celebrities’ recommendation is equivalent to endorsement; stars will lose some of their value if the project is not done well. Whether celebrities or famous institutions invest in long-term lock-up is a judgment standard. IPO-like methods such as rating will appear in the future, and the connotation of influence will change accordingly. But influence trust remains the same. Celebrity endorsements play an eye-catching role but also combine the judgment of the experts. White paper trust

White papers are like campaign outlines. For a party to govern, it releases a campaign program of how they intend to do it. The white paper is not for the public but for experts who endorse the project with their influence and judgment. It is still an early project; the endorsement does not guarantee success and still carries zero risk. Web 3.0 is faced with the innovation problem of the new corporate structure; It is necessary to understand technology to start a business and the production relationship suitable for one’s own projects, such as innovative design incentives and governance. If you can’t write a white paper project well, it means that the quality of the project is not high.

0.3.2 First mover advantage

Due to the existence of coins, once the project is popular in the market, the price will be high, which forms capital barriers and user barriers. A project that does not issue coins cannot integrate shareholders, employees, and customers, so it is not a Web 3.0 project.

0.3.3 Summary of competition threshold differences with web2.0

Originality trust, community governance trust, influence trust, White Paper trust, and first-mover advantage; the first four are the basis of trust; the fifth is the result of trust; The above five points are different from the competitive threshold of web2.0; These five points It is an observation point to examine whether the Web3.0 project has advantages. The most important thing is originality. A project without creativity is of little value. The chainless project is innovative in many ways.

0.4 A chainless system that takes the route of inherited innovation

Web 3.0, also called Web3; Web 2.0, also called Web2, has the same meaning. This article does not distinguish between them.

Web2.0 has technical advantages, but Web2.0 does not have an ecological platform like Ethereum. Therefore, it is a historic innovation to use the technology of Web 2.0 and the idea of Bitcoin to realize the financial platform of Web 3.0.

There are currently two general accounts of cryptocurrencies, blockchain and a directed acyclic graph. The general indexing ledger in the next chapter provides another general ledger thinking for cryptocurrencies, which is used to solve the contradiction between general ledger data public imtamable and centralized treatment.

There are two design options for a chainless system. One is to use blockchain module technology to implement a chainless system. The technology is very mature. It is just a change in thinking. It can be implemented with any chain technology, so there is no need to introduce it. The Miles team we work with has worked in cryptocurrency for many years and provided underlying and wallet technologies for dozens of projects. They still adhere to the concept of Satoshi Nakamoto’s anonymity for the same reason.

Other plan Like the Bitcoin system, the chainless system is also a one-person system. The core program was developed by Professor Li Bing using the programming tool GreatFree. In addition to time trust, it meets the remaining six machine trust criteria. Therefore, the chainless system does not need the consensus mechanism represented by POW or POS to achieve the requirements of Web3.0, realize the Satoshi Nakamoto machine trust standard, surpass the security and privacy requirements of Web2.0, and have the same level of ease of use as Web2.0.

The composition principles of the two plans are the same. Below we take Li Bing’s plan as an example.

The whole system consists of a general ledger cluster and a personal sub-ledger cluster, which realizes transparent centralization and personal clusters have the function of multi-signature and multi-backup wallets, and their own money is more securely controlled by themselves, which solves the pain points of cryptocurrency wallets. Simultaneously, it solves the payment problem that Satoshi Nakamoto did not solve. It has the efficiency of a centralized system and utilizes the machine credit of the Bitcoin system so that the chainless system has the credibility of the Bitcoin system.

The chain of the blockchain is a journal ledger. The journal ledger of the chainless system calculates the hash value by block and uploads the hash value to the Bitcoin segregated witness zone. Anyone can download this journal ledger and check the hash value. The credit of the Bitcoin system is used to make the chain “invisible.” From have chained to chainless, the chainless system inherits the publicness and machine trustworthiness of Bitcoin, which can solve the existing pain points and defects of the blockchain mentioned in this article. Moreover, it is more secure and environmentally friendly, while Satoshi Nakamoto’s liberalism The brilliance of thought has not changed.

Designing a financial system that conforms to Web 3.0 is to inherit the ideological value of Bitcoin. Use the Bitcoin system to abandon the current blockchain ledger structure. Of course, the chain of thoughts is intangible. However, it is the right way to reform existing centralized systems with Bitcoin ideas, to inherit the most advanced achievements of humankind, and to inherit the excellent technology of Web 2.0 instead of doing another set. Inherited innovation is our inspiration for the latecomers.

Chapter 1 Example of Application and Structure of Chainless System

1.1 Introduction to the GreatFree programming technology

We must find and use the best tools to do a good job. GreatFree is the first programming technology with the Internet full-scene distributed development capability. It is the first programming technology proposed by Chinese scholars, and it is also an easy-to-learn, general-purpose, and efficient development tool.

Distributed systems are complicated to develop. Development in traditional high-level languages is expensive and time-consuming; only a handful of people can do it. Even so, system performance is not guaranteed. Currently, the implementation of distributed systems has to be accomplished by middleware (framework). Distributed middleware improves the development efficiency of the distributed system by virtualizing the specific domain distributed environment into a simple single-machine serial environment. However, due to the high complexity of distributed computing environment and the wide variety of applications, each distributed middleware can only target one specific domain or even one specific application. At the same time, the middleware is challenging to modify and cannot adapt to the variety of possible prevalent changes. As a result, many complex systems have to use a variety of distributed middleware at the same time in order to meet a variety of different application requirements. Moreover, there are problems of incompatibility and communication difficulties between this middleware, or the interaction method cannot be unified. In addition, their occupation of system resources is independent of each other and cannot be coordinated.

The chainless system is a cryptocurrency financial basic platform system that needs to make innovations and changes from the distributed bottom; At the same time, the distributed architecture needs to be allowed to expand freely to accommodate computational pressures from upper applications; Moreover, cryptocurrency platforms have complex application scenarios, including a variety of smart contracts and decentralized application requirements. In this case, no existing distributed middleware or framework can accommodate the above requirements. For this reason, a universal distributed programming technology capable of adapting to various distributed environments is an inevitable choice.

GreatFree creatively breaks through the limitations of existing distributed programming technologies. Professor Li Bing proposed the concept of a distributed machine; Discover the distributed elements of distributed machines in various complex distributed systems and the distributed common pattern of combining these elements; Through programming, the traditional concurrent technology is transformed from system-level memory sharing single-machine mode to application-level messaging distributed mode. Distributed system development using GreatFree technology enables rapid construction of distributed modules using distributed elements and limited combinations between them and simplifies system performance through upgraded concurrency technology. In the computing environment facing the Internet, GreatFree can efficiently implement various complex distributed systems to ensure high quality.

The efficiency of GreatFree allows programmers with basic programming skills to quickly master GreatFree and quickly and easily develop a variety of distributed systems that used to require highly skilled programmers, allowing a small number of programmers to take on distributed development tasks that previously required large teams. For cryptocurrency systems, lower development costs and fewer developers also avoid potential security risks.

For the financial system, security comes first. Developing by one person is incredibly secure. The chainless system by Professor Li Bing to do core development shows the power of this technology. The chainless system is an example of an application. That predicts that distributed cloud, private cloud, and hybrid cloud development will be very cheap and change the cloud ecosystem dominated by the public cloud.

While launching the chainless system, we also found development tools GreatFree to improve the cloud ecosystem.

1.2 The overall structure of the chainless system

1.2.1 Composition of the chainless system

The chainless system consists of the general ledger and sub-ledger. The general ledger comprises distributed clusters, and users control data transfer in and out of the general ledger. The sub-ledger is in a multi-signature multi-backup secure wallet. The wallet is also composed of a distributed cluster, which is a separate system; has the smallest “bank” system cluster structure, the bank in the hands; Forms a communication relationship with the general ledger; In addition to being a sub-ledger of the chainless system, the wallet also has cryptocurrency wallet functions, including the ability to store NFTs.

A hash index links the chainless system general ledger and all sub-ledgers; When the transaction operation of the sub-ledger is triggered, update the amount of the sub-ledger and the amount of the general ledger if the transaction is legal, and urge the general ledger and sub-ledger to save the current transactions, and urge the general ledger to update the hash index table. Based on this, the general ledger stores only the latest transaction entry of the subaccount and the corresponding hash index For user query; there is no separate each sub-ledger trading log list; trading and separate log lists are stored in the sub-ledger for users to keep so; as to realize the distributed books of peer-to-peer payment unique structure. It has centralized transaction efficiency and the characteristics of the blockchain ledger and realizes its own data management by itself.

The latest transactions of the general ledger and the user’s sub-ledger form a transparent ledger that can be checked by the user, ensuring that the general ledger cannot be unilaterally tampered with. This point reflects the trusted checks and balances of the Bitcoin machine. General ledger

General ledger: consists of coin indicator, the latest transaction records of sub-account, sub-ledger hash index table, indicator tables and log account, transaction log account, verification log account, etc. Unlike the concept of a financial ledger in the traditional sense, it is similar to the blockchain ledger of Bitcoin. But relatively more subjects. Sub-ledger

Sub-ledger: It has the blockchain wallet’s public and private key functions. The difference from the blockchain wallet is that it has a chainless sub-ledger, a reconciliation relationship with the general ledger. Structure diagram and description of the chainless system

Diagram 1 is the structure diagram of the chainless system.

Diagram 1

The chainless system as a whole adopts a typical three-layer distributed structure.

1. Front-end

The user interacts with the system through the client device.

Clients are implemented using standard methods or a peer-to-peer distributed node model.

The standard customer mode is used to access the middle layer when the user is in a wireless Internet environment. However, when users are in a local area network environment, they can access devices in the home Internet through peer-to-peer mode and access the middle layer with the support of these devices, improving access performance and response speed.

2. Middle layer

The general ledger management module is established in this layer and is responsible for interacting with the client and saving the processing results in the backend. The middle layer consists of a distributed cluster. Typically, this cluster organizes multiple computing devices together in a tree-like structure. The middle-tier cluster can handle access, computing, and data pressure under normal circumstances. However, when extreme situations occur, the system can automatically detect changes in computing pressure, thereby changing the node topology to cope with tremendous computing pressure. In this case, tree-like clusters can automatically evolve into forest-like clusters to carry larger access loads. Correspondingly, when the computing pressure returns to normal, the cluster will recover again to save computing resources.

Furthermore, the cluster’s topology is not limited to a tree-like or forest-like structure. The cluster management mechanism can make appropriate changes to the cluster topology and corresponding algorithms according to the special access requirements to adapt to the special environment and make the system meet the performance requirements. Diagram 2 shows the internal structure of the cluster. Refer to the GreatFree operation manual (26) for a detailed description of child nodes and tree clusters.

Diagram 2

3. Backend:

Sub-ledger as a concrete data storage module at the backend of the entire system. Usually, it is also implemented by a tree cluster. However, it is generally larger than a mid-layer cluster because it is responsible for primary data preservation and computation. Similarly, its topology and distributed algorithms can be automatically changed to ensure that the system achieves the highest performance requirements with the lowest possible computing resources. Diagram 3 is a schematic diagram of a tree cluster.

Diagram 3

4. Instantaneous access pressure

Distributed clusters are used in the business modules of the last two layers to improve the system’s ability to carry data and user pressure.

Instantaneous access pressure: The fastest blockchain currently claims to process 3000-10000 transactions per second without blocking. This metric is a Visa metric. Using GreatFree can easily implement an unlimited concurrency mechanism. In addition, provides some basic concurrent clustering frameworks. Among them is a cluster called CC (Composite Cluster), which can freely expand or contract the computing resources scale according to the current computing pressure.

5. backup

From a backup perspective, the system consists of two backup clusters: a hot cluster and a cold cluster.

A hot cluster contains many nodes, which the system manages to ensure high performance and avoid downtime through hot data backup. The number of distributed nodes in a hot cluster can be set arbitrarily and changed at any time. In addition to backing up data, hot clusters can also participate in computing to improve the entire system’s response time. Similar to middle-tier clusters, the primary management mechanism of hot clusters can also expand and contract freely according to changes in computing pressure. It is a factor that the application system in the Internet environment must consider, that is, to bear the potential unlimited computing pressure.

A cold cluster also consists of many nodes; when the corresponding hot cluster node has no user access, data can be backed up from the hot cluster node to the cold cluster node.

From an accounting perspective, hot clusters and cold clusters can be further divided into :

General ledger cluster, the data is saved in the server cluster.

Subledger cluster, the data is held in the respective secure wallet cluster.

1.2.2 The Composition of the general ledger

1. Coin indicator: used to show the total amount of a specific currency. For example, the total number of bitcoins transferred from outside.

2. The latest transaction record of the sub-ledger:

Each currency is a separate record.

There is one record of each sub-ledger of the currency in the general ledger.

The sum of all the sub-ledger records of the currency is equal to the value of the coin indicator record.

The most significant role of the coin indicator is the verification of external transactions, and the Transfer out and in of the sub-account will cause the change of the coin indicator.

3. Subledger Hash Index Table: The index table for the general ledger to connect the sub-ledger. No external cold backup.

4. indicator table and log account: each different currency indicator constitutes the indicator table, and the change of the indicator table constitutes the indicator log account.

5. Transaction log account: One is generated every minute, and the generation process does not affect transactions.

6. Validation log account: A transaction log account hash is calculated every hour and corresponds to the log account at that time. This hash value constitutes the verification log account.

The chainless ledger differs from the traditional financial ledger and is similar to Bitcoin’s blockchain ledger.

1.2.3 The Composition of sub-ledger

The sub-ledger is in the secure wallet, a personal transaction log account. There are public and private key functions and account structures of blockchain wallets. In addition, there is a Multi-signature and multi-backup function.

Subledger can open anonymous accounts and KYC accounts. However, others do not easily track anonymous accounts through their KYC accounts.

1.2.4 Transaction process

Transactions are divided into external transactions and internal transactions. External transactions have the same cross-chain principle as a blockchain divided into transfers in and out, and Internal transactions refer to transfers within the chainless system. Internal transaction

The internal transaction coin indicator does not change. The general ledger is responsible for verifying the results confirmed by both parties to ensure that the values in the general ledger are correct. The confirmation of the transaction by both parties is a local consensus that should not be turned into a global consensus. The trade between the two affects the transaction parties and the general ledger records, and all stakeholders are responsible for their own interests. After verification by both parties, the general ledger is finally confirmed. Although the start of the transaction is sent by the general ledger, due to the distribution, it cannot be guaranteed that the transmitted data is correct. Finally, confirm the transaction result again to ensure the general ledger is accurate.

Diagram 4 is an illustration of internal transactions.

Diagram 4 Transfer in

The coins of the chainless system are transferred from external, divided into fiat currencies and cryptocurrencies. The fiat coins here are defined as the REC20 structure for simplicity, avoiding the trouble of wallet design. Diagram 5 is a transfer diagram with cryptocurrency as an example. The transfer process is the cross-chain, which is a mature blockchain technology. Unlike internal transfers, the coin indicator increases the number of transferred coins.

Diagram 5 is a schematic diagram of inward Transfer.

Diagram 5 transfers out

Unlike internal transfers, the coin  indicator reduce the corresponding number of coins. The Transfer out is multi-signature; in addition to the system private key, there is also the user private key. Users can design multiple signatures. He sub-ledger the correct multi-signature and then the system’s Private key to multi-sign. The system has three private keys and two signatures are valid. The user’s private key is set within 12, which refers to the design of Bitcoin’s 15 private keys. The sub-account owner can set the valid ratio of private key signatures, such as 12-7, 3-2, etc.

Diagram 6 is a schematic diagram of external transfers.

Diagram 6

1.3 Function realized by the chainless system

the general ledger is designed with the following functions.

1.3.1 Indexing function

Diagram 7 shows a schematic diagram of the entry structure of the sub-ledger in the general ledger:

Diagram 7

Diagram 8 shows a schematic diagram of the sub-ledger index structure in the general ledger.

Diagram 8

The general ledger has no sub-ledger transaction journal, only the latest entry of the sub-ledger. Anyone can only query the newest transaction records of the sub-ledger; if all transaction journals are not synchronized, the historical transaction records of any sub-ledger cannot be found. Even if all transaction records are synchronized, whether the sub-ledger is allowed to be checked depends entirely on the settings of the sub-ledger. Even if the journal account is disclosed, if the sub-account hides some information, outsiders will not be able to understand it, but verifying the hash account can ensure the log account is correct. User can check their transaction records. The general ledger only stores the latest transaction entry and the hash index, while the log account of the transaction entry is stored in the sub-ledger, which the user keeps. The hash index table is another channel linking the general ledger and the sub-ledger. It is very important in an anonymous state and is necessary for the reconciliation system to realize the unique distributed ledger structure of peer-to-peer payment.

The centralized transaction efficiency and the characteristics of the blockchain ledger make Web 3.0 based on the blockchain idea practical.

1.3.2 Verification function

Verification ensures that the calculation process is credible and the sender, the receiver, and the general ledger machine constitute three parties. The transaction party and the machine jointly confirm the transaction results. The verification result is temporarily stored in the general ledger and permanently stored in the sub-ledger. Verify that the external transfer data is correct

Using a concept similar to the previous block, the hash value is calculated for each transaction record, and the current record and the previous record, including their hash values, are stored in the general ledger. Include in a record the hash of the previous record and the hash of the completed record. For example, when a bitcoin is sent to the system, it is stored in the bitcoin register, and the indicator also has two hash positions. Note that one position is empty, and only the indicator may have this empty position. When the indicator receives the data sent from the outside and increases the indicator value, then the hash value of this record can be calculated, and there is a second hash position of this record. When handing over the indicator data to the client for verification, the client verifies the hash value; the first null means external data, and the second hash value means the record is correct. Accept it if it is correct, and calculate the hash of its own record. Verify whether the ordinary transaction is correct

When the current user makes a transfer, the next user will accept the hash value of the transfer record verified by the user, and the next user can verify whether the account data is correct; Hash 2 indicates by the previous source, hash 3 indicates the record hash value, The program returns when the value does not match the recorded calculation result. The verification process of the Transfer and the location of the hash value are shown in Table 1.

Table 1 Schematic diagram of the hash position in the transfer verification process:

Table 1

Table 2 Schematic diagram of the specific change of the hash position in the transfer verification process.

Table 2

Table 2 shows that the first hash is the data source, and the second is to ensure the data is correct. The machine does a final check to confirm whether the transaction is correct and deletes the “previous item” when it is correct, thus ensuring that the data is sourced. As long as the machine verifies that the hashes of the spending and receiving are correct, the data is guaranteed to be correct. A sub-ledger has one record in the general ledger. Send and receive data exists on the general ledger for verification purposes. The link at the heart of the blockchain is the “previous block.” The concept of “previous item” is used here. The directed acyclic graph also uses the concept of the previous one. In fact, there are many ways without much trouble, nothing more than making the blockchain personnel understandable. The general ledger is not afraid of exposure because the real ledger is in private hands. The above process can avoid “double spend” transactions. Verify that the total amount of money in the general ledger is consistent with the amount of money in the sub-ledge

It is correct as long as the latest sub-ledger data in the general ledger is added to the same as the indicator data. Verify once before the transaction to ensure the number is correct, and verify it again after the transaction. If it is sent externally, it is necessary to change the value of the coin indicator first and then calculate the total number again. If the verification result is correct, the external sending program is executed, and the public key and the private key verify the sending program. There is one machine in the computing cluster that the user can control through multi-signature. The verification process is concurrent, and the indicator changes when the verification passes.

The sub-ledger transaction book is stored in each sub-ledger, and the general ledger cannot generally be transferred unless the sub-ledger owner’s permission is obtained. Therefore, its default setting is off.

1.3.3 Anonymous function

Anonymity: Through the design of user temporary registers in the system, a user can define any number of temporary registers; the system sets 10, mainly to avoid the expansion of the general ledger; the design of the temporary registers allows customers to disperse large amounts of money, and then send. When it’s turned twice, the vast accounts are hidden. Since the account is public, anyone can check it. The other party knows who sent the money and will immediately know how much you have. Only one record of the general ledger has a hash value associated with the previous one, so the other party cannot guess how much money you have in your account. There is such a setting in the sub-ledger, which is set to hide the Transfer, and two transfers are automatically performed. The data displayed in the sub-ledger on the general ledger is not afraid of being exposed. Automatic Transfer to anonymity is to transfer yourself without three-party verification.

1.3.4 Query function

It is divided into general ledger query and sub-ledger query. General ledger query

General ledger query includes:

1. Coin indicator query. Query the coin indicator to know the total number of currencies in the system.

2. Query any account name and address. Username and address correspond.

3. The latest transaction record of any current sub-ledger. (Note: The premise is only when the head of the sub-ledger agrees with the general ledger to query his sub-ledger or only when the head of the sub-ledger discloses his sub-ledger information. The decision-making power is in the hands of the director of the sub-ledger.)

4. Statistical data query, including total transaction volume and number of transactions by currency, year, month, day transaction volume, number of trades and charts, etc. Sub-ledger query

Sub-ledger queries include:

1. The corresponding relationship between the account name of the specific sub-ledger and the internal accounts and addresses of various currencies.

2. Contact information for sub-ledger disclosure.

3. Statistics query is similar to wallet query.

4. The disclosure authority of the sub-account is set in the sub-account in the setting function. Sub-ledger query permissions are closed to third parties.

1.3.5 Storage function

It is divided into the storage of the general ledger and sub-ledger. of the general ledger

The general ledger is a cluster, which is the same as the underlying design of a centralized cluster and is synchronized in real-time. The general ledger function includes an optional backup function for sub-ledgers, but the sub-ledger should set it up and pay the fees. Subledger Storage

The sub-ledger is in a multi-signature and multi-backup wallet. The wallet is better than any hard wallet in the world regarding functionality and security. See the Secure Wallet section for storage.

1.3.6 Notification function

At present, mobile phone notification has been done very well. For the receiver, the notification is divided into SMS and email notifications. For the sender, it is the notification of the successful transaction.

1.3.7 Alarm function

Program running abnormal alarm, illegal login alarm, sending failure alarm, timeout alarm, equipment hardware error alarm, etc.

1.3.8 Message function

It is a community function. There are bulletin boards and private messages for contact between system customers.

The most critical message function is the public beta comment on this system’s upgraded version, which can be released only through community comments. Reviewers have income; see Chapter 2 on incentives for rewards. Customers vote to confirm the corresponding version of the new program code and publish the new code on GitHub.

1.4 Multi-sign and multi-backup secure wallet

1.4.1The pain points that need to be solved

There are three types of data in the financial field: cryptocurrencies, NFTs, and fiat currency. Unfortunately, wallets cannot solve Fiat currency alone, and wallets can only solve some problems; however, if you can convert fiat currency into tokens in the ERC 20 format that you can use this platform. The transformed protocol is ERC20.

In order to achieve the goal of owning your currency, the security wallet needs to solve the following problems:

1. solve private key loss and security issues.

2. Solve multi-device validation issues.

3. Solve the inheritance problem of assets.

4. Solve the ease of use problem.

The above problems are all problems of asset security completeness.

The market needs a unified solution that enables cryptocurrencies, NFTs, and fiat assets to fit into the future of Web3 with one platform.

The closest thing currently to solving the above problem is multi-signature wallets. Multi-signature is a good protection against hackers because a hacker is unlikely to compromise so many devices simultaneously. Cryptocurrency uses multi-signature wallet technology, but it does not require individuals to back up ledgers because the number of blockchain general ledger backups is sufficient. However, multiple backups are necessary for the personal sub-ledger of the chainless system.

1.4.2 Multi-signature and multi-backup wallet implemented based on cluster technology

The system includes at least three nodes, one as the controller node and two as child nodes. The controller node is responsible for global scheduling. One child node is responsible for external communication, and the other is for backup. Child nodes and controller nodes form a peer-to-peer network in the scheduling of wallets. Each child node has its backup. Backups are made with cloud devices. Nodes can be mobile phones, computers, or servers (home cloud).

Through cluster scheduling, the “hard wallet” has the multi-signature and multi-backup function, so the scan code connection between the hard wallet and the client is not required. Furthermore, since it is a peer-to-peer system, each private key can be generated when each is disconnected from the network, and each device does not know the private key of the other. And the private key is encrypted and stored on the device and the cloud.

The cluster scheduling enables the wallet system to have the banking system’s capabilities and ease of use, which is unmatched by various encrypted wallets. And the realization of multiple backups can exceed the security level of banks. So, become an important infrastructure of Web3, and realize your own money that controls by yourself.

Diagram 9 is a schematic diagram of the multi-sign and multiple-backup secure wallet cluster system.

Diagram 9

1.4.3 Implementation of the Scheme

Two mobile phones and a home cloud (or computer) form a cluster system dominated by the home cloud. Only this small cluster can ultimately bring the “bank” into its own hands without outside interference. It is a minor system to ensure security, and the system has three additional online storage, such as storage in the home cloud, public cloud, or storage in the cluster of the chainless system.

One mobile phone is a high-end phone used now, called the main phone., used to communicate with the outside world. The other is an abandoned phone as a backup phone.

Three hosts have three private keys, perform multi-signature, and can design 3-1 multi-signature, 3-2 multi-signature, and 3-3 multi-signature. Which multi-signature to use is resolved during setup, such as setting on the leading mobile phone, no sign below $1,000, 3-1 multi-signature below $3,000, 3-2 for more than $3,000 and below $10,000, 3-3 for more than $10,000. When there is no need to sign, the wallet only has the backup and quick payment functions. Private key replacement

All three devices are set independently. For example, face transfer can be added on the leading mobile phone, and a password can be added when face transfer fails. These are tried and proper solutions in the current payment system.

Once the private key is set, it cannot be changed. The three private keys are encrypted and stored in the corresponding device and can only be opened by the wallet scheduler. In a chainless system, you can open a new account and transfer money to the new account if you must change the private key. So don’t spend money on yourself. But it’s not easy to manage too many accounts.

There is no difference between a chainless system transfer and a bank transfer using a mobile phone. The machine does multi-signature, the user cannot see the private key, and the user does not need to memorize the private key. Instead, the user visits the menu, jumps out, sees the transferred account page, is responsible for confirmation, and clicks Yes or No.

The password can be changed, but the private key cannot. It can only replace. Online backup

Each private key of the three hosts is backed up online. Separately encrypted, separate download, and open. The file backup is also their own backup, and The downloaded files are opened with their own private keys. The backup mobile phone is not necessarily online 24 hours a day. After going online, the ledger data and NFT metadata are synchronized first through wallet cluster scheduling. Therefore, online backup data is minimal, except for the private key and important inheritance files. Not necessarily Sub-ledger is backed up online can obtain it from the chainless system. There is a one-time fee for downloading, but it is still cheaper than online backup. Multi-signature verification

The other two devices in the cluster do the verification work when transferring money. For example, the leading mobile phone starts multi-sign verification according to the size of the funds, 3-0, 3-1, 3-2, or 3-3, requests verification from the other two devices, and multi-signature completes, then starts the Transfer. Chainless payment classification

3-0 Credit card level, no password, set and change the limit by yourself. The chainless system gives transaction notification information.

3-1 Small amount transfer, password/fingerprint/face, the chainless system gives secondary verification information. Set and change your limit above your credit card-level limit.

3-2 Large amount transfer, main mobile phone, and another device, password/fingerprint/face, the chainless system gives secondary verification information. On top of the limit set by the small-value Transfer, you can set and change the limit yourself.

3-3 All three devices involved in the oversized Transfer, password/fingerprint/face, and the chainless system will give secondary verification information. You can set and change the limit above the limit set by large-value transfers.

The above are all multi-signature applications within the chainless system. When the second confirmation is made, the chainless system starts the external Transfer for external transfers. The private key of the user’s external Transfer can be set in the same way, with a maximum of 12. Track the transfer process

The cryptocurrency has a tracking program that can confirm the results. The chainless system tracks the confirmation results of the counterparty’s ledger. Notify the sender. Synchronize data after the result is confirmed

After confirming the result, the chainless system needs account backup and synchronization. Cryptocurrencies do not need to be synchronized. Synchronize data for temporary storage

Due to the indeterminate start-up time of the backup mobile phone, the data not backed up by the backup mobile phone is stored in the temporary storage area of the controller node until the backup mobile phone is synchronized. Connection with centralized devices

The wallet itself is an independent module, and external connections can be set to be closed. Currently, the receipt of cryptocurrency is not affected, and the Transfer of fiat currency and NFT depends on the interface state design. The wallet APP on the leading mobile phone is responsible for external communication, and apps other than the main mobile wallet APP cannot communicate with the wallet. The relationship between the leading mobile phone and other devices

The payment function of the leading mobile phone has an external interface API. If this API is called alone, it cannot constitute a multi-signature and multi-backup system, but there is a quick payment, just like Alipay. Therefore, a multi-signature and multi-backup module is added for payment to a multi-sign function. equipment replacement

1. Change other equipment

change a new mobile phone or computer. The old mobile phone or computer is not lost. Download the same APP on the latest mobile phone, synchronize with the other two devices after logging in, and replace the private key. The replacement method is the same as the current encryption method, which scans the QR code private key on the original device. The cluster system only recognizes one; the new phone presses the confirm button, and the old one is automatically eliminated. When using the original device to log in again, it is necessary to synchronize again and perform the private key conversion.

2. A device (mobile phone) is lost

the old mobile phone loses the private key, but the mobile phone password and user name are not lost. You can download the APP again and use the recovery program to open the backup file. The file can be opened with the multi-signature of the mobile phone that is not lost and the password of the lost mobile phone, and then the private key can be recovered. The encryption process is the user’s own operation, and the encrypted file is formed through multi-signature. The recovery procedure is to open encrypted files. It is opened with multi-signature. It enables recovery of any device loss. Before performing this process, you must first download the APP, synchronize the device, and then complete the recovery procedure.

The other two devices are lost in the same way.

Two devices are lost and handled by inheritance. Inheritance procedure

1. Inheritance if the mobile phone is not lost

The multi-signature multi-backup wallet APP has an inheritance button. Press this button to start the inheritance process. Tell you when you can inherit. The content of this inheritance program is the same on the three mobile phones. Online backup is also available.

2. Inheritance if all equipment is lost

Theoretically, it cannot be inherited. For this, the chainless system provides a multi-signature witness service, which can save the inheritance program to the system, set the time, notify the heir when it expires, and perform multi-signature. The inheritance time can be set arbitrarily.

Inheritance process. Set the successor’s email address in the settings and send the email. The email has a distribution plan. The email can be sent to the successor. Each person receives a device name, password, and private key. You can download the APP separately and log in for synchronization. Only when multiple heirs sign the account operation can the transfer be possible.

This inheritance time can be changed. There will be a reminder before the time. One month before the inheritance time, a reminder will be once a day. It can be set with or without sound. You can set the heir’s mobile phone number in advance.

There were modifications during the final implementation.

1.5 Examples of Smart contracts and applications for chainless system

A smart contract is a concept borrowed from the blockchain. There is no need for this concept at all in a centralized system. Because smart contracts are so rudimentary, it is an account driven by prescribed conditions. The stated conditions are the “contract.” The foundation of the chainless platform is transparent centralized, and the technical environment is better than the blockchain-based cryptocurrency environment. In a transparent centralized cryptocurrency environment, all smart contracts in the blockchain can be fully realized and more powerful. Applying project migration is very easy.

1.5.1 Stablecoins issued by fiat endorsement

No need to issue tokens on the blockchain. To set up a register, it is simpler to ” issue coins ” on a chainless platform. Whether it is air currency or asset currency depends entirely on the nature of the project. Any bank can issue its own bank’s “stablecoin” if it has the corresponding fiat currency assets. For example, the total amount of stablecoins USDT issued by Tether is transparent, but how many dollars he has is not. That’s a problem. In order to solve this problem, the chainless system needs to set up an external account at the dollar issuers, and the bank needs to deposit the dollar into the dollar account of the chainless system, just like the chainless system external account in the Bitcoin ledger. In this way, the “cross-chain” is transparent. Secured assets will not be misappropriated.

The digital currency issued through the ERC20 protocol may be air currency, and the issuing unit must guarantee the quality. Fiat currency is issued by institutions responsible for the quality of fiat currency. Why do we insist that assets have a source? Because we are a public platform and do not undertake regulatory responsibility. The assets are under their control, and the duties are also their own. We only guarantee a rational and logical conversion environment, which is impossible to establish in Web 2.0.

1.5.2 Introducing the Web3.0 Financial Ecological Platform of Contract Accounts Design

The chainless system is a financial platform that can implement almost all of the functions of Ethereum, and some functions are more convenient to implement. The chainless system also supports contract accounts, and decentralized financial functions can be better realized. The chainless system does not define contract accounts. There is no need for the design contract to call the contract, which can be arbitrarily designed. Unlike Ethereum, the chainless system insists that “assets have a source” and supports tokens formed by ERC20 and other protocols. NFT tokens, they can be done through smart contracts. Due to low-frequency trading, the general ledger design of the chainless system has no Trading advantage. However, the secure wallet can be connected to the NFT trading platform, and the chainless system can undertake payment tasks.

The chainless system is a financial system that does not involve non-financial applications of Ethereum and can implement almost all Defi blockchain services. The chainless system introduces the contract account into the traditional financial system, which not only realizes the traditional financial business but also enriches fiat currency’s transaction methods. Alipay also means a smart contract; the difference is third-party arbitration. The blockchain’s smart contracts are all automatic; only by adding guarantees, witnesses, and other traditional financial applications and automating them can the blockchain arbitration methods be enriched. These high-level arbitration methods are challenging to a smart contract. Automating things like cryptocurrencies is difficult for traditional finance without contract accounts. These two problems can be solved simultaneously for the chainless system, and the concept of contract account can be introduced into the conventional financial system, making it a financial, ecological platform. You can submit an APP for contracts to expand the use of smart contracts.

1.5.3 Break the barrier of Ethereum smart contracts

Traditional finance is an independent project, which can be a user platform like Alipay. However, neither is an ecological community platform. The chainless system is the first unified financial platform covering fiat and cryptocurrencies and an ecological community platform. Only with commonality, openness, and autonomy can it be possible to replace the Swift system in the future and realize some of the replacement of web2 financial projects. Cryptocurrencies lead the innovation in financial transactions. The following lists the design of the major categories of Defi applications and introduces how blockchain’s existing innovation can be realized using the chainless system. The chainless system extends smart contracts to artificial intelligence; the disadvantages of smart contracts are not independent apps, and inconvenient upgrades will change.

Unlike Smart contracts, The chainless system can open accounts arbitrarily, and contract accounts can be opened. It is ecological APP development. Any number of contract accounts can be established for any currency. The contract account is not defined and can be defined by the ecological APP itself. Developers can define contracts at will and can define automatic or manual methods. It is far more flexible than the current smart contracts of the blockchain, so it is more like an ecological APP on the Internet.

Smart contract writing separates the account and the control program, which can be upgraded at will. But it must be backward compatible because the user has the power not to upgrade. Instead, the developer can upgrade the Ecological APP. All third-party programs are released by community audit. Community audit is very important and is needed for community governance.

Give up compatibility with the current EVM because it is faster to rewrite with Great Free.

Contract accounts and the upgrade of smart contracts will significantly change the existing financial ecology, the general ledger transparency, and the user’s grasp of their own data is the new financial industry status.

1.5.4 How to implement the Rollup

Rollup means packaging. The purpose is to save miner fees and trade at a faster trading rate. For chainless systems, packaging happens to external transactions. There are two ways for Bitcoin; one is through the off-chain, such as the Lightning Network. The transaction fees in the Lightning Network are meager, and the Transfer from the Lightning Network back to the Bitcoin chain is the release of multi-signatures, and the Bitcoin system still charges a fee. This way to save money through off-chain transactions. Another way is exchange transfer. According to the size of the transfer amount, the exchange can try to configure the Transfer out of the address of the appropriate denomination to avoid multiple denomination addresses to one transfer out the address, reduce transaction bytes, and thus reduce fees. The chainless system is similar to the Transfer of a centralized exchange. The user pays the transfer cost, and the Transfer can be packaged and transferred out. As the second layer technology of Ethereum, it is somewhat complicated to implement, and this article, Rollup, does not include this meaning.

1.5.5 How to implement the UNISWAP(19)(20)

It is a basic application of the chainless system platform. UNISWAP realizes four functions: deposit, withdraw, exchange, and issue trading pairs at will. The core code is about 1000 lines.

There are two ways to implement UNISWAP in a chainless system.

Make an EVM-compatible machine, and then port the code as it is.

Rewrite the code again. How to rewrite? Use the GreatFree distributed tool. It supports JAVA virtual machine. Its library function is rich. Rewrite it as a separate APP, which can be upgraded, Reducing the audit cost. The specific implementation method

Open contract accounts in the general ledger. Used for depositing and exchanging tokens for users within the chainless system. The program of UNISWAP is very mature. Currently, UNISWAP is not an independent APP but is only carried on the wallet and connected with Ethereum through the wallet. It can become a separate ecological APP after transplantation, and it is easy to realize functions that cannot be achieved in its V3 version. There is much room for innovation regarding ease of use and functional expansion, and it can reach the speed and level of centralized exchanges. Virtual liquidity pool design

Chainless UNISWAP locks the user’s tokens through a conditional setting (equivalent to smart contracts), but the tokens are in the user’s own wallet. Since there is a general ledger, you can know how many tokens the user has. Smart contracts are similar to the idea of Lightning Network, locked tokens are exchanged as an exchange commitment, and reaching the target price can be exchanged. And it’s automatic. The users’ funds are more secure. Blockchain UNISWAP’s own big account is transparent but, in theory, can still move the account’s data, and Chainless UNISWAP can not touch user data. This idea is impossible to achieve in the current blockchain. Advantages of virtual flow pools

The user’s transaction is stored in the user’s own ledger, and the log account is stored in the Chainless UNISWAP server, which is convenient for the user to log in and query. In fact, it is a combination of automated transactions and manual data queries. Chainless UNISWAP can serve its own users through the server. Unlike now, Uniswap does not even have an APP.

If the Uniswap server is directly to the user, the centralized service is no different from the current exchange. Using a chainless system, similar to the structure of Opensea, the coins are in their own wallets.

1.5.6 How to realize the distributed listing transaction

It is an essential application of the chainless system platform. Each chainless wallet can put the tokens it wants to sell on the sale page, and a robot is responsible for patrolling all chainless wallets for matching. This transaction is automatic. The listing information on the transaction page is synchronized from the chainless wallet. Since there are many currencies, users of chainless wallets need different listing information. The design idea of thousands of people and thousands of faces is adopted here. This technology is mature in Web2. But no encryption exchange is using this technology.

Since the tokens are in various wallets, the wallets are distributed and stored. Therefore, the matching speed is still lower than that of centralized exchanges. If you want to be fast, design a quick trading function to drive coins into an exchange similar to Uniswap, which is at the same level of competition as centralized exchanges.

The API interface provided by the chainless wallet enables ecological APPs to access the wallet and conduct matching transactions.

1.5.7 How to connect with centralized exchange transactions

Centralized trading means that the tokens are to be transferred to the personal account of the centralized exchange. There are four methods. External transfer as the chainless system

Where the tokens are deposited into the personal account of the centralized exchange. Not limited to the type of currency. This method has nothing to do with the chainless system and can be suitable for any exchange. But the disadvantage is that the fee is expensive. The centralized exchange opens an account in the chainless system

Which is a stablecoin account for the centralized exchange. The chainless user first converts it into the stablecoins of the exchange, such as BUSD, and enters the personal account opened in the exchange to buy and sell. You can return the coins from the exchange to the chainless system’s account without any fees.

The exchange has a weak relationship with the chainless system, and it is required to support the interface protocol of the chainless system. This protocol is straightforward, equivalent to the transfer between the internal sub-accounts of the chainless system, but the system defaults that this transaction will not be charged. The exchange controls the security when the coins are sent to the exchange. The centralized exchange opens an account in the chainless system, and the user has a stable currency of the same currency

The transaction fee for exchanging the exchange’s stablecoins is omitted. Likewise, clients have accounts with the exchange. The state channel of the Lightning Network is also suitable for this approach. One is low cost, and the other is security. Centralized exchanges open stablecoin accounts and mortgage models in the chainless system

Users also have this stablecoin, but the stablecoin does not hit exchanges. Instead, mortgage the stablecoin with a smart contract, and when the target transaction is completed, transfer the stablecoin to the account opened by the exchange in the chainless system.

It is very convenient because there is no fee for the token circulation of the same customer account. The exchange is responsible for storing the target tokens in the exchange’s account, such as buying bitcoin. There are two ways to send it back. For example, the exchange has BTCy in the chainless system (tokens equivalent to Bitcoin); you can return your account without any handling fee. If not, it is necessary to call back the user’s account through the external transactions of the chainless system. But, take the handling fee.

By the way, the interface and mortgage programs used here may be public programs, which belong to the extension of the chainless system ecosystem. When incorporated into the chainless system ecology, the chainless system buys these programs, makes them public, And retains the copyright mark.

1.5.8 How to implement Aave (21)

Aave is a decentralized lending protocol. It is also inappropriate to say that it is decentralized lending because it is necessary to enter the same pool, and this pool is the center. The characteristic is that data can only be accessed through contracts, and the data is publicly stored on the chain. Another feature is automatic lending. Automatic lending is not new; all stock market brokers can do it; it is a traditional essential function. Aava’s flash loan within a block is unsuitable for a chainless system.

Users can use it to earn interest on deposits or borrow assets:

Depositors: You can deposit tokens into the Aave asset pool to earn interest income.

Borrowers: You can borrow cryptocurrencies (tokens ) from the capital pool through Overmortgage assets or unsecured (flash loan) methods and pay a certain interest fee.

Price Oracle Provides loan interest rate information.

Collateral Liquidators: When the value of the collateral assets falls and reaches the liquidation line, the assets are liquidated.

Integrated Applications:

Aave supports constant and variable rates; borrowings are indefinite and can be partially or fully repaid at any time.

The following diagram10 is Diagram 4 of the V1 version of the Aave white paper. The whole logic is very clear. However, there are improvements in the V2 version, which will not be explained here.


Chainless Aave is a basic application of the chainless system. It can be realized with an ecological APP. It is also necessary to open a contract account in the general ledger of the chainless system and realize borrowing through smart contracts. Achievable new features and upgrades will bring new opportunities to chainless Aave.

The most imaginative is the realization of personal mortgage lending. There is no need for a capital pool, the number of individual tokens is clear, and the account is locked through smart contracts. Since it is easy to open an account, user A puts the token into the contract mortgage account, and lender B controls the mortgage account after lending token b. The contract account has a repayment period. If the loan cannot be repaid, Party B confiscates the token a. A variety of repayment terms can be designed and executed automatically by the program. This program earns trading commissions. Personal lending is the way to go to an intermediary.

Guaranteed lending uses a third-party-guaranteed loan, that is, a third-party-guaranteed smart contract.

There are also custody contracts, deposit contracts, etc. can be realized.

1.5.9 How to implement aggregation

Aggregation is an arbitrage tool when different capital pools’ mortgage and loan interest rates differ. There are Yearn. Finance, Synthetix, etc., will have opportunities only after the ecology is enriched.

As an implementation, it belongs to the interface call of the chainless system.

1.5.10 Implementation of the derivative tools

Such applications include oracles. The chainless system provides general ledger data.

1.5.11 Implementation of ecological tools

The system adopts the mature tools and methods of the Internet as much as possible to make it as seamless as possible. But there is still room for development. For example, the chainless log account is like a blockchain, stored by page hash. This log account can ultimately generate a database for easy queries. This vision is released as an ecological task.

1.5.12 Big Data and artificial intelligence analysis

The general ledger data is public, and although it is anonymous, it is still meaningful for analysis. The most significant advantage is producing analysis reports according to user needs, accepting user orders, and giving suggestions for buying, selling, and listing. In addition, it can use the robot’s high-frequency trading used by professionals to trade with ordinary users automatically. This method is open and transparent.

The most important application of big data and artificial intelligence is to find and match potential transactions and communicate with potential traders.

1.5.13 Payment implementation of the Internet of Things IoT

The most famous system of IoT is IOTA, which uses a phased acyclic graph DAG to solve the payment problem. The automatic payment of the machine is a good topic. It is much easier to implement with a chainless system than DAG, and the ledger is complete. Only the IoT device has a chainless wallet and a pre-set transaction address. Its address is public, and whoever uses it is pre-set. The chainless system has automatic and manual payment methods. Both Party A and Party B to be paid have accounts with a chainless system. Automatic payment corresponds to small payments, and large payments can be multi-sign manually. Centralized backup can be used for a single point. The chainless system does not define smart contracts, which opens space for IoT node payments. Generally speaking, both parties of the transaction need to be set, and it is difficult for the IoT device to carry out complex transactions.

1.5.14 Development of smart contract templates

That is tasked as a chainless system, supporting valuable template development.

1.5.15 Block transaction tracking program

That is tasked as a chainless system, supporting construction of a valuable tracking library.

1.5.16 Realize the docking with traditional finance

Since the chainless system is a unified platform for fiat currency and tokens, it is necessary to connect with banks to connect with finance. Banks have three functions, transfer, deposit, and financial management. Banks need to open ordinary accounts and contract accounts on the platform, realize their own ecological APP, and connect with their own financial system through the APP to realize deposits, transfers, and wealth management. There is only one indicator for the same currency. The first account requires the general ledger indicatorto be set up for a new currency. Banks issue their tokens in the ERC20 format. If not in the ERC20 form, it is incompatible with the current cryptocurrency wallet. Banks can integrate the chainless system into the bank’s existing system through API. The realization of this docking is to have the fiat currency issuer in the chainless system have accounts.

1.6 A Summary of trust mechanisms and Progress

1. Control decentralization:

Individuals can control the transfer of general ledger data, and individuals can set the control level of data transfer.

2.No downtime :

The cluster system’s automatic scaling and global layout ensure that the system does not go down. There are no blockchain ledger accounting problems caused by submarine cable failure.

3. The general ledger data is open and transparent :

The general ledger data is publicly available for inspection. Cold backup data can be downloaded. Ledger data reconciliation is performed before and after transfers. Querying the latest transaction records of the sub-ledger and whether the sub-ledger is allowed to be checked depends entirely on the settings of the sub-ledger. Otherwise, even if you see the data, you don’t know whose record it is. Users can check their general ledger transaction records. indicator data can be checked. For more inquiries, please refer to the “Inquiry Function” section.

4. The result cannot be tampered with:

Openness, transparency, and hash verification ensure that the accounting result cannot be tampered with.

5. Privacy:

Users decide how public their data is. The log ledger can be downloaded. However, whether or not the data of each transaction record is disclosed depends on the encryption settings of the parties, and only the parties can decrypt their transaction records.

The hash index contains data such as sub-ledger addresses and KYC, which cannot be checked.

Subledgers are not publicly viewable.

6. Anonymity :

Users can set up anonymous accounts, support anonymous transfers, and not expose personal wealth.

7. Open :

The program is open source, and the transaction account is publicly downloaded. Anyone can query the general ledger data through the public interface.

8. Control data by yourself :

Multi-signature and multi-backup, sub-ledge design, automatic data retrieval, general ledger data transfer control, and your data management by yourself. More secure than bank storage.

9. Community governance :

Gradually transition from team governance to community governance. This point will be explained later.

1.7 Progress beyond the blockchain – Web3.0

In short, The chainless system takes the essence of the blockchain idea, achieving the payment speed of the centralized system and conforming to the standards of Web 3.0. The chainless system inherits the technical advantages of Web 2.0, the cost of bookkeeping is meager, the bookkeeping system can be automatically expanded on demand, and the throughput is not limited. Smart contracts are easy to write and upgrade. And the wallet is safe and easy to use. The ease of use is the same as that of a centralized wallet.

The chainless system combines the idea of Bitcoin, hoping to become an effective payment platform, become the infrastructure of Web 3.0, and make up for the defects of Bitcoin system payment.

The chainless system began to be conceived in 2018, started to have plans in 2019, applied for patents in 2020, and began implementing the program in 2022. Open source after the public beta, After open source, citing code within 18 months requires the written consent of the project team.

Chapter 2 Incentive

For Web3 projects, coins should not be issued in the early stage because it is difficult for everyone to judge the quality of the project. But when it comes to the A round, the project can issue coins when it reaches the test net stage because it needs everyone to contribute. Giving coins is a means of motivating people to contribute.

“Participation is mining.” It is a method of giving token incentives based on participants and contributors. Integrate users, shareholders, and employees through chainless token incentives. The incentive is divided into direct incentive, that is, easy to quantify the incentive; Indirect incentive is not easy to quantify directly. This chapter mainly discusses direct incentives.

2.1 The value of chainless coins

The chainless coins are the token of the chainless system, and it is also an incentive for the ecological development of the system.

2.1.1 Features of chainless coins

1. It’s an asset token.

It has four attributes: asset attribute, equity attribute, governance attribute, and attribute of platform coin.

2. It represents the value of the ecological and user community platforms.

3 . The token is issued as “Participation is mining.”

Because users are the most significant number of participants in this ecology, Participants are sent tokens which is equivalent to “mining.”

4. The coins are ERC20 tokens; the total number is recorded on Ethereum. In the chainless system, you can check the account transaction status of the designated token.

Transaction fees can be charged in various tokens, which are exchanged for stablecoin at the end of the day. Charges are high for highly volatile coins. It can be divided into two levels: Charges are five out of ten thousandths and one thousandth. Highly volatile token charge a fee of one thousandth. For project tokens with excessive volatility, conversion to USD stablecoin fees is required for pay.

2.1.2 The Value narrative of chainless coins

1. There is total amount control, so it has the nature of stored value,

2. Due to dividends, it has the nature of equity,

3. Represents the value of the chainless ecology.

The Chainless system is the primary platform of Web3, and its advantages determine the potential to enter the leader.

2.2 Allocation of chainless coins

The issuing plan of chainless coins is as follows:

1. How to issue coins

Chainless coins are not allocated according to the time but according to the participation degree of the number of users, “participation is mining.”

2. Coins issuance period

Referring to the rhythm of Bitcoin’s growth cycle, the high-speed growth period is 72 months; the stable growth period is 72 months. However, due to the participants’ uncertainty, this cycle is only envisaged as a goal.

3. Coins issuance structure

The total circulation of chainless coins is 2 billion, and there will be no additional issuance.

The amount of issued chainless coins is allocated according to the ecological community, user community, market promotion, and other sectors. The specific amount is as follows:

Ecological community incentive 30% 600 million

User community incentive 30% 600 million

Market promotion 6% 120 million

Strategic investors 5-10% 150 million (estimated at 7.5%)

Project initiator 15% 300 million

Programming implementations: Li Bing 0.875% 17.50 Million

Project design: Zhu Weisha 1.75% 35 Million

Web3 Foundation 1% 20 Million

Web3 consultant Committee 0.5% 10 Million

Zhuhai Branch of Beijing Institute of Technology 0.5% 10 Million

He Weiqiang 2.62% (seed investor) 52.50 Million

Maneuver 4.25% 85 Million

Special note: 15% of the project initiator, equivalent to 5.42% of the Bitcoin held by Satoshi Nakamoto, 10% is owned by Hong Kong Yuxing Technology Company, and Hong Kong Global Token Company has 5% as a stable cornerstone of the project. Please look at section 4. 2 for specific purposes buyback mechanism.

4. Locking mechanism

The project initiators, Li Bing, and Zhu Weisha, have been locked up for 12 years and released yearly.

Strategic investors, the foundation, and the Beijing University of Technology’s Zhuhai branch have locked up their positions for six years and released them yearly.

Ecological community 3-6 years lock-up, among which the ecological support project is six years lock-up, linear release every year.

The consultant and He Weiqiang locked up for three years and released linearly every year.

The user community, promotion, and other aspects are locked for three years, and the annual linear release,

Due to the unevenness of the token obtained from” mining,” it is constrained by the rule of difficulty adjustment. The difficulty adjustment is shown in the algorithm; please take a look.

According to the lock time limit, the linear release refers to the release evenly by day.

5. Others

Maneuver shares are used for people who help projects in the early stage; They can also be used to adjust the proportion of each part, and there is room for adjustment in marketing and strategic investment shares. All balances will be finalized before the listing of chainless coins.

The user community’s “participation is mining” is completed, estimated to be 12 years. After that, the project enters a mature stage and ends “participation means mining,” relying on transaction fees and other charging models to charge. If all the coins are not used up, the project will continue to “participate means mining”; Enter the standard project mode.

Table 3 is a summary of coin allocation and lock-up.

Table 3  Chainless coins circulation allocation and linear release period

参与方或社区 Participants or Communities占总量比例 Proportion in Total发行量 Circulation线性释放期 Linear Release Period
生态社区激励 Ecological Community Incentive30.0%60000万 600 million3-6年 3-6 years
用户社区激励 User Community Incentives30.0%60000万 600 million3年 3 years
市场推广 Market  promotion6%12000万 120 million3年 3 years
项目发起方 Project  initiator15.0%30000万 300 million12年 12 years
程序设计者(李冰) Programmer (Li Bing)0.875%1750万 17.50 million12年 12 years
项目设计者(祝维沙) Project Designer (Zhu Weisha)1.75%3500万 35 million12年 12 years
战略投资者 Strategic Investors7.5%估算 Estimate 7.5%15000万 150 million6年 6 years
Web3基金会 Web3 Foundation1.0%2000万 20 million6年 6 years
北京理工大学珠海学院 Zhuhai College of Beijing University of Technology0.25%500万 10 million6年 6 years
Web3顾问委员会 Web3 Consultant Committee0.5%1000万 10 million3年 3 years
种子投资者(何伟强) Seed Investor (He Weiqiang)        2.62%5250万 52.50 million3年 3 years
早期贡献者 early contributor4.25%9000万 90 million3年 3 years
Table 3

2.3 The “Mining” incentive method of the user community

Participation is mining. The user community incentive is based on people. New users will award tokens when they register, and old users’ contributions to activities such as developing new users will also be rewarded. We plan to issue 600 million coins in the chainless user community and develop 200 million users in 6 to 12 years. User community incentives mainly include awarding coins to newcomers, to people for attracting newcomers, to a trader, etc. About 300 million are used for newcomer incentives and about 300 million for activity incentives. Basic formula (1) and formula (3) in the section on newcomers’ incentives are provided by Mr. Lu Tie Geng, and the charts are all his simulation results according to the formula. The specific incentive methods are as follows.

2.3.1 newcome incentive

The newcomer refers to the newly registered users who indicator in their real name and get tokens. However, anonymous users cannot judge the authenticity, so they cannot get tokens.

New users are valued at $50.

The principal formula is as follows:

New users earn coins g = $50 / market price…………… Principal Formula

It is a principal formula. We use the following model to adapt to the different stages of project development.

2.3.2 User model (model without coin price adjustment) Determination of the user cycle and the number of users in each cycle

Divide 200 million users into 30 cycles and issue about 300 million coins. x is the x-th cycle.

The formula and parameters are as follows:

Number of users per cycle ux

ux=1.3×(2+8×0.8(x/3)-0.015×(x / 3))((x-1)/3)……………………Formula (1)

Formula (1) corresponds to the number of users in the third column of Table 4.

Symbols and meanings:

1) ux stands for user, the total number of users reaching a specific period’s end. When x equals 30, see Table 4, u30= 198.49 million, the total number of users.

2) Constant: 1.3, set for 200 million users in 30 cycles.

3) Multiplication factor: 2

4) Growth factor:2((x-1)/3)

Without the adjustment factor, the main line of the model is to double the number of users every three cycles, 2((x-1)/3)).

5) Growth decline factor: 8×0.8(x/3). Predict the growth of users according to the “S” natural growth curve. We split the growth rate into two parts: the doubling trend of 2 and the growth adjustment part of 8. The decrement of the growth rate we set is halved in three cycles, that is, 0.8(x/3). With the increase of x, the growth rate will also decrease rapidly. 8×0.8(x/3) form a growth rate decreasing factor.

6) Adjustment factor of growth trend: – 0.015×(x/3). As the market matures, the doubling rate will slow down. The parameter we set is that every three cycles (x / 3), the multiplication factor will decrease by 0.015.

Table 4 Simulated user sending coins allocation table          

px 币估值价 Coin Valuation Price (美元) (USD)x 周期 Cycleux 用户数 Number of Users (万人) (10,000 People)  dx 新增用户 New Users (万人) (10,000 People)  cx当期 发行量  current period issued (万枚) (10,000 Pieces)Cx累积 发行量 Accumulation issued(万枚) (10,000 Pieces)gx 新用户 得币 New user coins(枚) (Piece)Vx 用户价值 User Value (万) (US $10,000)
 Subtotal 19849.6830676   
  Table 4

7) The increment of current users d.

dx = ux– ux-1………………………………………………………………Formula (2)

Table 4, fourth column, new users correspond to dx. The growth curve of users in each period is shown in Diagram 11. It basically conforms to the S-type natural growth curve.

The first cycle user increment 1 in Table 4 is a parameter set by artificial. Does not meet formula (2).


Diagram11 user growth curve of each phase Coins current issue model (model without coin price adjustment)

8)The total amount of coins in the current period: c stands for coin.


cx is the number of coins issued in the current period. dx is the number of new users in the current period, and x represents the Xth cycle. cX corresponds to the fifth column of coins issuance in the current period in Table 4.

dx×110×0.5(x/3)was the regulating factor.

9) Accumulated circulation of CX

C30 represents the total number of coins issued.

C30= (c1+…………………………+c30)…………………………………Formula (4)

Cx corresponds to the column of cumulative circulation in Table 4, sixth column. The total amount is C30 = 306.76 million.

In the first 15 issues, 15.243 million people took away nearly half of the 150.82 million coins. According to the concept of venture capital, the value of early investment (early participation) is high, and of course, the risk is also high. Up to 15 million people, projects have entered the head of the blockchain, so the risk is not significant. The value of the project itself is far greater than the value generated by the number of project customers. The parameter 290 does not play an essential role in the user model. Still, in the circulation model with coin price adjustment, 290 plays an important role in the early and late user interest adjustment.

Diagram 12

Diagram12 distribution of regular circulation Coins received for new users

10) gx represents the number of coins per user in the cycle x. which means get.

gx=cx/dx…………………………………………………………………Formula (5)

Where cx is the number of coins issued in the current period, and dx is the number of new users in the current period. Each new user gets 377.3 in cycle 1 in g1 and 0.28 in g 30 in cycle 30.

gX corresponds to column 7 of Table 4 Total user value Vx


In Table 4, u30 represents 19,849.68 customers over 30 periods, and total user value V30=$992.484 million.

According to the Internet valuation rules, each user is $50, slightly higher than the price of Facebook’s acquisition of Whatsapp. At the time, they were paying $42.2 for monthly active users. WhatsApp is a globally oriented Internet system that has reference value. We do not consider the monthly active users in our valuation, so the value of users is not low. In fact, user value is only part of the value of the project. Often a good project, its project value is far greater than the user value. The Relationship between user value and coin price p

12) Px=50/gx

The estimated coin price of each issued cycle is different. P1, P2…………………… P30 expresses it. gx represents the number of coins received by the user for cycle x. The price of the first issue P1=0.13.

The pX corresponds to column 1 of Table 4.

2.3.3 circulation model (model with coin price adjustment)

The circulation model is different from the user model above. Blockchain uses circulation value to measure project value. The circulation market value calculates the value of the circulation model, and the calculation result of the user model is not necessarily equal. In the early stage of blockchain, the token may be issued. If the token is not circulated, the user model can be applied. Once the circulation is, the circulation market value will constrain it, and the circulation model is applicable. The px values in Table 4 correspond to the user model.

In the user model, we have a formula (3): cx = 290 + dx×110×5(x/3)。 Using formula 3 combined with formula 5 to calculate the number of coins the user gets in x period gx, Use the token price formula: the token price px=50/gx; it can be further deduced that the currency price px in the user model x cycle is shown in Table 4, Corresponding to the x-cycle token price px, we use p’x to represent the circulation currency price in the circulation model x cycle. Furthermore, in the x-1 period of the circulation model, the currency price of p’x-1 may also be higher than the currency price px of the user model x period. Considering that p’x-1 is greater than px, at this time, it is necessary to reduce the issuance of coins quantity. We improved formula (3) in the project model, and the parameters have the same meaning. In any period x, the average currency price of the market transaction in the previous period x-1 is called p’x-1, and c’x is the current amount of currency issued considering the changes in market prices. d, x, all have the same meaning as formula (3). px corresponds to the price of each x period in the 8th column in the user model table 4. The current currency issuance model can be changed to a model that considers the currency price market changes:


Among them, p’x-1> px model is established. Otherwise, it is underestimation. Formula(3) applies to underestimation.

p”x-1 is the average coin price considering the x-1 period of coin price changes, and c’x is the number of coins issued in the current period x considering the change of coin price.

Take the second cycle, for example; see Table 4, d2 = 13900, c2 = 3.86 million, and the user model coin price p2 is 0.18. At this time, the price of the previous cycle p1 is 0.13. If the average price change of p1 in the previous cycle is no longer 0.13, whereas p1 was changed to p’1=0.36, the coin issue calculated by formula 6 is c’2 = 3.38 million, 480000 less than that of c2. obviously, the change in coin price plays a regulating role. For 15 cycles, c15= 1692, If the P14 price changes from p14= 9.54 to p’14=24.1, It’s exactly twice the price of P15, and c’15= 811; see Table 4, column 6, line 15, and the average amount of coins dropped from 4.15 to 1.99. Due to the existence of the constant, the influence on the early and late stages is not as significant as that in the middle stage.

In the design of the average price, we did not adopt the method of 20-day average price but chose the average price of the previous cycle. We can’t predict how long this cycle will be, so it’s not easy to cheat. Due to the existence of the constant 290, in the fifth cycle, the dx×110×0.5(x/3) adjustment factor reaches 303, which is just over 290, which shows that the impact on the issuance of coins is not too significant.

2.3.4 Standard model

When the 30 cycle is over, if the coins are not used up, which can continue to use them. The average coin price of the 30th cycle is the p’x-1 coin price. Before the Px-1 cycle, if a higher coin price is stored, use the highest price and calculate the number of coins sent out.

The simple model should be enough to meet the standard growth cycle.

g= 50 / Pmax…………………………………………………………………Formula (7)

g represents a user who gets the number of coins in each period.

2.3.5 Summary of the three models

The above three token-issuing models correspond to three token-issuing stages. The user model is used to issue tokens during the non-traded stage; From public trading until 198.5 million users, the circulation model is applied. After that, a standards model is used. We can’t predict how long the standard growth cycle will be, and it will end when all the coins are allocated.

Different incentive methods in different stages are more reasonable. Obviously, the incentive for users in the early stage is large, which also conforms to the general law of venture capital. On the other hand, user log-on is not a success, but just at the beginning. Whether users take this as their home depends on activity incentives. Use 306.76 million coins for new ones and 293.24 million coins for user activities. Each accounted for about 50%.

The above describes the method of incentive new ones, and the design of the activity is described below.

2.3.6 Reward for Contributors

After the new person recommended by the contributor has successfully registered, the system will send additional coins to the contributor. The number of coins is 10% of the new user’s coins. For example, if the system sends 200 coins to newly registered users, it will send 20 to contributors. At the same time, It will give one point to the contributors. Send points regulation and purposes to see the next chapter, “Governance” section 5, the benefit distribution of all levels.

New users developed by contributors are responsible for continuous training. The system will reward the contributors 10% of their total transaction fees if the users conduct transactions. For example, the income of the new user transaction service fee is $100, and the contributor gets $10. Note that this is a single-level structure. Only contributors can get this reward if they pull a new user directly; that is, the new user is the direct subordinate of the contributor. When not publicly traded, there is no transaction reward. Award for strong contributor

Set up 3, 9, and 21 new strong person award; the system provides the bonus, and the winner can receive it. Accumulated the calculation of the previous results. Twenty-one days is a cycle; the data is cleared and starts again.

1) 3-Days pull new award

The strong person is selected from the contributors who have completed the recruitment of a new person for three consecutive days, and the top 20% of the contributors are the three-day strongman. The ranking is based on the number of newly registered users developed within three days under the name of the new strongman.

The system provides the 3-Day new strongman award, and the total amount is withdrawn at 3% of the total amount of the newcomer’s coins under the name of the newcomer’s contributors for three consecutive days.

Get the 3-day prize and get 3 points. In addition, see the provisions and purpose of the next chapter, “governance” section 5 of all levels.

The bonus distribution formula is as follows:

Coins for the new strongman award: The top 20% contributors who pull new person. The total number of new coins×3% is to the contributor. For example, if the contributors draw five new people, within 20%, the total number of 5 people is 1000, and the contributor can get 30 coins.

2) 9-Days pull new  award

The new strongman will be selected from the contributors who have completed the recruitment of a new person within six days within nine days, and the top 40% of the contributors are the 9-Days new strongman.

The system provides the 9-Day new strongman award, and the total amount is withdrawn at 2 % of the total amount of the newcomer’s coins under the name of the newcomer’s contributors within nine days.

The ranking method and bonus distribution formula are similar to the 3-Days new strongman award. The score of sending coins obtained in the first three days is counted in the coins received among the nine days.

Six points will be obtained if you get the 9-day prize. See the provisions and purpose of the next chapter, “governance” section 5 of all levels.

3) 21-Days pull new award

The new strongman will be selected from the contributors who have completed the recruitment of a new person have 15 days within 21 days, and the top 60% of the contributors are the 21-Days new strongman.

The system provides the 21-Day new strongman award, and the total amount is withdrawn at 1% of the total amount of the newcomer’s coins under the name of the newcomer’s contributors within 21 days.

The ranking method and bonus distribution formula are similar to the 3-Days new strongman award. The score of sending coins obtained in the first nine days is counted in the coins received over the 21 days.

Fifteen points will be obtained if you get the 21-day prize. See the provisions and purpose of the next chapter, “governance” section 5 of all levels.

4) Strongman award

The 21st produces an Explosive model of 48 points, and 10% of the new strongman gets.

Contributors consistently ranked in the top 10% on the 21st and scored 72 points. There is still one point for pulling a person. If the pulling person scores more than 28 points, 10% of the people may score more than 100 points in 21 days. It takes 100 points to upgrade to the lowest star “Rat” level and obtain the minimum qualification to participate in the bonus distribution of the chainless system. In extreme cases, it takes 100 pulling people to be eligible. Reward ideas for other promotional activities

The above activities require about 40 million coins based on 200 million users. A total of nearly 300 million coins can be used in various campaigns. So there is a lot of room to design activities. The community can propose these activities, and the goal of the activities is to contribute to ecological development and growth. The activities designed above all encourage contributors who contribute to ecological construction. This idea is also successful for YouTube and others, and future activities should be designed to continue this idea. We will also continue to listen to the market and enrich the campaign before the official white paper is published. The other line of thought is for the silent majority. There will always be a large percentage of YouTube hosts who are not making money and whose labor is not respected. Solving the problem of the silent majority with egalitarianism must not work. And the Bitcoin mining game proved successful and was considered fair by all. This game is based on probability, and we will design game algorithms for the silent majority that will intensify the group’s role in governance in the next chapter. It will be carefully argued. The enhanced role of the community is advancing the corporate system, and we leave ample room for this. Reward token bookkeeping time

Chainless coins sent to ordinary users will stay in the system for a week and will be automatically deposited into the user account if there is no problem with no one to report or a robot to judge; Chainless coins sent to star-rated customers will be immediately deposited into the account.

2.4 Difficulty adjustment method for user community incentives

Use the lock-up and repurchase mechanism to adjust the difficulty to achieve the goal of linear release and improve market certainty.

Since the number of people is random, the non-linear release will cause abnormal price fluctuations. Such fluctuations can even ruin the project. Bitcoin adjusts the difficulty so that the distribution pivot is always around the level of one block in 10 minutes. The system does not collapse due to increased and decreased computing power, thus stabilizing investors’ expectations for the project. Difficulty automatic adjustment is a pre-set intervention behavior necessary for an automated system to maintain stability. The stock market also has mechanical intervention, and even the market is closed in severe cases.

The only factor that Bitcoin can adjust due to the algorithm’s structure is the difficulty coefficient adjustment, which still has rapid volatility of more than 90% in the early days because it cannot automatically make interventions to the market. For the coin price to reflect the investment value of the system, it is necessary to reduce investors’ concerns about the uncertainty of the system. Increasing the stock issue in the stock market is bearish; why is it not bearish when Bitcoin is “issuing shares” daily? Because it is a predictable behavior. Our difficulty adjustment is to turn the unpredictable randomness of users who “participate is mining” into the same predictability as Bitcoin and achieve a linear release of Bitcoin. Then we aim to exceed Bitcoin’s stability expectations and avoid making large early fluctuations.

During the user model phase, coins are not publicly traded, so no stabilization mechanism is needed.

From the circulation model phase onwards, there has to be a stabilization mechanism because the coins are tradable.

There are two stabilization mechanisms:

the lock-up mechanism,

the repurchase mechanism.

2.4.1 Lock-up mechanism

We use the 20-day Bollinger Band as the basis for the lock-up mechanism.

When the currency’s price falls to the lower rail point of the Bollinger Band, the calculation will start, and the lock will be triggered when the price drops by 10%. The time is in GMT standard time and will stop the daily linear release of the locked currency on the next day. Until the currency price reaches the middle rail of the Bollinger Bands, release locked, restore the linear daily release. Market-purchased coins are not subject to this restriction.

Continue to send coins daily, and the dividends of existing coins will not be affected after locking.

When the currency price reaches 10% of the upper Bollinger Bands rail, the release is doubled until it returns to the Bollinger upper rail and returns to regular release. Doubling the freedom means that the amount released for one day is now the amount released for two days.

Bollinger Bands are a well-known stock market technical tool found everywhere. This article will not repeat them.

2.4.2 Repurchase mechanism

After the coin is no longer released linearly, it will be triggered if the coin price continues to fall to the repurchase line. The repurchase line is the user valuation line Vx in Table 4. It means that the system has only user value. When users exceed 200 million, the user value line rises, and the formula Vx=50×ux still applies. With the development of the Internet, the value of people will become higher and higher, and exactly how much a user is worth is determined by the community to decide the new user value line.

There are two types of repurchase:

The core team used the profit reserve to buy back. Use 33% of the project initiator, 100 million coins, if not enough, as collateral, and then repurchase. When the currency price returns to the middle rail of the Bollinger Bands, it can begin to sell gradually.

The role of the project initiator is 15%, and Nakamoto’s 5.42% is the same but more flexible than him. Satoshi Nakamoto expressed confidence by holding coins and not selling them, and we put our confidence into action in addition to expressing confidence. The project’s currency holding can be used in ways other than selling to maintain ecological interests, but the method must be clearly stated in advance. Satoshi Nakamoto is passive; we are active. The initiator can exercise voting rights, and Satoshi Nakamoto does not participate.

Other possible repurchases are also accepted through community discussions.

2.5 Income distribution of chainless system

65% of the net income of the chainless system is distributed to the members of the system through various rewards and does not disappear with the end of the issuance of coins. The next chapter, “Governance,” describes the community reward scheme. This distribution can be either chainless coins or DW20, or fiat. 35 percent as a reserve to maintain a chainless ecosystem. The chainless system does not stipulate the destruction of coins, but should it be used if the destruction is necessary? Reserve to a certain amount, and the excess can be distributed in proportion to the total amount.

With the strengthening of community governance and the transition of governance, some issues must be discussed clearly in the community. We don’t know what the future will be. But the total retained assets must belong to the owner of the chainless system currency. Owned coins are similar to equity.

2.5.1 Project income

1) Platform transaction fee income.

2) community income.

3) other income. Other income includes technology transfer income, third-party witness income, APP download income, a third party such as credit card swiping income, download income for user accounts, third-party join-up chainless system income, and search matching income. Secure storage revenue, etc. The secure multi-backup has a cloud backup revenue for the chainless system. Sub-leasing public cloud for wallet customer backup, etc.

2.5.2 Income allocation

50% of the net income is used for hold dividends, 15% for bonus dividends, and 35% for reserves, which can also be invested in non-ecological support projects, including business restructuring. The bonus dividend percentage can be adjusted once a year. Coin rewards policy based on user activity

1) Ranked according to the number of transactions, the top 45% of monthly active users can enjoy the following policy of rewards coins:

For example, 25% of the transaction fee is divided in the first year. Divided into three levels. According to the number of transactions, 25% is the third level, 15% is the second level, and 5% is the first level. Therefore, 25% of the monthly handling fee is divided equally among the three groups.

2) Ranked by transaction volume, the top 45% of monthly active users can enjoy the following policy of rewards coins:

We take the first year as an example, 25% of the transaction fee is divided into three levels according to the monthly active share, 25% is the third, and 15% is the second. Therefore, 5% is the first level, and the third level is divided into a monthly handling fee of 25%.

Note: Some people think cheating by the number of trading coins is easy, so that may change. Trading Strongman Award

The trading strongman award is divided into three awards, 3 days, 9 days, and 21 days.

(1)3 days trading strongman award, rewarding people who participate in trading every day for 3 days and have trading volume ranked in the top 60%; the bonus standard is three times the number of coins sent by the newcomer on the third-day deadline; Three people were randomly selected from the 60%. For example, the newcomer gets 50 coins; the explosions model is 150.

2) The 9-day trading strongman award rewards those who have participated in the transaction for 6 days within 9 days and the top 60% of the transaction volume. The bonus standard is 6 times the number of coins sent by newcomers on the 9th day deadline; 2 people are randomly selected from 60%. For example, the newcomer gets 50 coins, and the explosion model is 300 coins.

3) The 21-day Trading Strongman Award rewards those who have participated in the transaction for 15 days within the 21 days and the top 60% of the transaction volume. The bonus standard is 15 times the number of coins sent by the newcomer on the 21st-day deadline; one person is randomly selected from 60%. So, for example, newcomers get 50 coins, and the explosion model is 750.

This reward is a raffle. If you meet the above conditions within 60% of the 21 days, you will have three chances of winning.

Note: This reward may add to the concept of grouping, such as 500 for a group. Otherwise, the winning rate is too low.

2.5.3 Dividend right

Dividends are paid monthly, and all chainless coin holders locked up can participate in the dividend. Part not issued is ineligible.

2.6 Incentive Scheme of ecological community

The incentive of user communities, Web1 and Web2, already have mature approaches. We have designed the chainless user community incentive method with heavy reference to various ways of Web1 and Web2. Can a similar system be used for the incentives of ecological communities? At our cognitive level, we have not been able to design a series of metrics. What metric is appropriate? Awaiting further practice. At present, the popular blockchain is to use DAO, and the use value is deficient.

At present, the incentives of the blockchain ecological community are mainly proposals, community discussions, voting, and approval. Chainless systems follow the existing blockchain ecosystem proposal method and support community proposals. Ethereum has proposal mailboxes, and their proposals are not public. The core team, i.e., the actual controller of the foundation, decides who to motivate. They also rely on external forces to participate in the project review, which does a good job. Typically $100,000 sponsors a project. These activities are not based on indicators and are subject to human factors.

The incentive of the ecological community is the incentive for the core team first. For the motivation of the core team, please refer to the section on team composition in Chapter 4.

The chainless system respects the blockchain ecological incentive method and adopts the principle of incentive by task. The release and assessment of tasks depend on the core team. The role of the core team is not mainly to assess but to form the mechanism and procedure of automated evaluations. DAO is based on smart contracts, which cannot be compared with the artificial intelligence level of Web 2.0 and cannot produce high-level automatic assessment mechanisms and procedures. So far, there is no reference model. We also hope that the chainless core team can fully use artificial intelligence technology and the power of the market to innovate.

2.6.1 Incentive according to the task

The payment shall be 1.5-2 times the market standard price for specific tasks. For example, there is a price for programming, and the core team organizes relevant personnel to judge whether it is reasonable and responsible for the allocation.

2.6.2 Look for loopholes incentives

For those who have completed the task of finding loopholes, pay the bonus from 1.5 times to 2 times according to the market standard price. The core team is responsible organizes relevant personnel to judge whether it is reasonable for the allocation.

2.6.3 Project Proposal Incentive

Complete specific tasks or put forward suggestions for improvement that are adopted; according to the market standard price, 1.5 times to 2 times pay the bonus. The core team shall organize relevant personnel to judge whether the task is reasonable and responsible for the allocation.

2.6.4 Programming rewards with GreatFree

The core team organizes relevant personnel to judge whether it is reasonable and is responsible for issuing rewards.

2.6.5 Ecological app support

The core team organizes relevant personnel to judge whether it is reasonable and is responsible for issuing rewards.

2.6.6 Buy ecological products to get coins

Buying ecological products such as purchasing Family Cloud can get chainless coins. However, the specific coins to be earned are specified separately.

2.6.7 Discount purchase coins

Specific users participating in the construction of the ecological community can purchase chainless coins at a discount of 50-85% of the market price. Share is the currency of the ecological community. Specific provisions depend on the release of the task.

2.6.8 Lock-up period

The chainless coins obtained or purchased through the above-mentioned ecological community projects have a 3-6 years lock-up period, allowing linear release.

2.7 Summary

There has never been a good way for blockchain to user community incentives. This chapter divides the user community incentive into three models: the user model, the circulation model, and the standard model. Different model incentives are used in different stages to solve the problem of randomness in forming user communities. Setting adjustment factors according to the stochastic growth S-curve and linking coin lock and release to currency price in the circulation and standard model greatly improves the certainty of project growth. However, we have two difficulty adjustment factors, one is to adjust the currency price, and the other is to adjust the currency lock and release.

The only factor that Bitcoin can adjust due to the algorithm structure is the adjustment of the difficulty coefficient, which is used to achieve linear issuance. There is still more than 80% volatility in the early days because it cannot automatically intervene in the market. In order for the currency price to reflect the investment value of the system, it is necessary to reduce investors’ concerns about the uncertainty of the system. Issuing new shares in the stock market is bearish; Bitcoin is “issuing shares” daily, so why is it not bearish? Because this is expected behavior. Our difficulty adjustment is to turn the unpredictable randomness of users who “participate is mining” into the same predictability as Bitcoin and achieve linear release. In the circulation and standard model, the release and locking of coins are linked to the price of coins, and the project initiators are allowed to maintain the community ecology actively, exceed the stable expectations of Bitcoin transactions, and try to avoid the phenomenon of large fluctuations in the early stage, making the project more valuable for investment.

The incentive method in this paper summarizes the experience of previous success and failure; every point seems to have been seen, and the whole is the first innovation.

At present, there are two problems left. One is making the silent majority profit with peace of mind while ensuring competitiveness. It is a matter of fairness, and it is also the need for lying-down earning projects. There needs to be extra interest here, which intelligent robots must generate. The second problem is the establishment of metrics for ecological communities. The metrics for the ecological APP are well established on how to quantify the content that is not easy to quantify, such as proposals. Need for a lot of exploration. It challenges the core team and the community and is the direction of effort.

Chapter 3 Community Governance and Indirect Incentive

3.1 Principles of Governance

Governance is the procedures, methods, and means to achieve incentives and adjust all parties’ interests.

3.1.1 Automated systems are the source of benefits

Incentives and governance procedures can be automated, but human behavior cannot be automated. People decide what is best for their interests according to the rules. The rules of a community best serve the interests of the community. Society has inequity; some are explicit, and some are invisible. Any fairness is relative, so is competition absolutely fair? YouTube’s algorithm allows 3% of the hosts to share more than 85% of the advertising fees belonging to all hosts, which is an inevitable result under any competition rule. Where will the head part come from if there is no massive contribution of 50 million other hosts? Just as 1% of the population owns more than 90% of the wealth in American society. The head takes the head’s interests to have a competitive advantage, So someone must let out the Profit。

How do cryptocurrencies do it?

Team benefits. The extra benefits of the chainless community are based on the low share of the core team of the chain-free system. Vitalik criticizes the high share that is under the banner of blockchain. There is some truth to it. From a practical point of view, 5-20% is a reasonable range. But the Profit that the team can make is limited. Another basis of cryptocurrency is that the management fee is meager. There are two reasons.

A. The system is the machines’ automation and the equipment composition. The more automatic a system is, the more benefits will be shared by the people involved because machines will not compete with people for profits.

B. Community governance reduces management costs. Dao autonomy is good, but smart contracts cannot realize it because the intelligence level is insufficient.

3.1.2 The foundation of community governance is freedom, fairness, and transparency

Governance is the distribution of benefits. Community governance currently conforms to the majority’s interests is voting based on the rule. The rational state of community governance is community autonomy. Unfortunately, complete autonomy does not now exist either.

The fundamental logic for the development and growth of the chainless community is freedom, fairness, and transparency. Freedom to come and go is no longer a problem. The foundation of fairness is transparency, and making money is clearly visible. The chainless community clearly stipulates the level difference, and the bonus level difference is 100 times. If there are no other means of Profit for outstanding talents, including direct and indirect interests and spiritual interests, grade difference alone will not retain talents. Only if it’s fair and encourages competition will people play. Only through transparency can there be fairness and a basis for consensus.

From the perspective of Bitcoin’s logic, transparency is the basis for achieving Bitcoin consensus, and community governance should also be based on transparency. Incentives based on this principle are open and transparent allocation methods. Section 6, “Examples of Benefit Distribution,” shows this possibility.

3.1.3 Governance

Governance power is divided into human rights, financial, and administrative. Bitcoin only has power, and it’s minimal power. Even the most minor power requires trust, which is different from gold. The way to reduce trust, the way cryptocurrencies do it, is:

As cryptocurrency governance, it is community governance formed by its fair and transparent concept. Communities are divided into owned and ownerless communities. An ownerless community is one where no actual controller participates, which is an ideal state. However, from the perspective of cryptocurrency practice, such ownerless communities are few and far between. If the project has evolved into an ownerless community, Does governance not exist without a core team? Who is in control of Bitcoin? It turned out to be the Supreme maintainer was Satoshi, then it was Vladimir van der Laan; after he left, it was divided into five hands, and now it is in the hands of four. Its governance procedure is very simple. It is an “improvement proposal,” such as Bitcoin’s BIP。

Ethereum also uses an improvement proposal EIP, but Ethereum is not yet an ownerless community.

If the application scope of Web3 is expanded, the ownerless community is not a necessary standard and mature projects still need to be governed. As a web3 project, mainly for end users, there must be a service. It is difficult for a pure ownerless community to guarantee the quality of service, but the principles of fairness and transparency created by cryptocurrency still apply. Therefore, in terms of governance, it is necessary to gradually move from the firm control of the core team in the start-up period to weak power; that is, the community control is strengthened, and the degree of automatic governance is strengthened from corporate to community governance. Community members gradually participate in the core team to participate in government. This transition period should be completed in about 6 years, in synchronization with the high-speed growth period of the chainless system.

Regarding the governance of ecological communities, the blockchain has many good experiences, including BIP and EIP proposals, task distribution standards, etc. There are examples to check. For the governance of the ecological community, the chainless system started based on corporate governance and tried to be as transparent as possible. Gradually improve the governance level of ecological communities. The ecological community’s share of tokens is 30%, which is more than 15% of Fil(file coin). It is hoped that the chainless system ecological community will become the most significant ecological community of web3.

In this way, in the early stage, relevant people recognize the governance rights of the core team, that is, supervise and manage project operations according to the rules to protect the interests of individual community members and the community as a whole.

3.1.4 User Community and indirect governance

Incentives are divided into direct incentives and indirect incentives. The second chapter gives the rules of direct incentives, and the chapter combines governance to provide the rules of indirect governance. Direct incentives are easily quantifiable incentives. Indirect incentives are not easy to quantify. Governance is a very complex issue from a social and corporate governance perspective. As an economic organization, the company still has a decentralization power system and an assessment system. Without a sound system, Web3 governance will not succeed if it cannot exceed the level of corporate governance. There are cryptocurrency ecological community governance cases, while user community governance is almost blank. The company has piece-rate and rank wages, corresponding to direct and indirect incentives. Piece-rate wages are a direct incentive, and companies use part of the benefits contributed by piece-raters as profits. Taking YouTube, which does the best job, for example, the proportion of advertising revenue distributed between them and the hosts is 55% for the hosts and 45% for them. The company, hosts, and users jointly create profits. The company distributes profits to shareholders and management teams, and users have nothing to do with it. It is unfair distribution. Proper quantification of various factors contributing to Profit is also a problem that indirect incentives have to face.

Indirect incentives are similar to rank determination; scoring is the most commonly used quantitative method. Which score is appropriate? The community constantly adjusts it through practice. There is no absolute plan, and the plan’s determination is governance. So, we put governance and indirect incentives together. Both the ecological community and the user community have score incentives. The score incentive is to score community members’ current and historical contributions that are not easy to quantify and use a combination of machine score evaluation, third-party evaluation, and community member evaluation.

Evaluation, starting with little data, will also be very rudimentary, just like the machine evaluation started by YouTube. Later it became more and more reasonable, but these were the participation of the YouTube core team and did not relate to the community.

The governance of cryptocurrency provides good practices but also exposes deficiencies. Its goal is to go as far as possible to the unowned community, and the direction is right. Obviously, it isn’t easy to achieve this requirement for Web3 projects. The above governance principles are proposed to address the shortcomings of cryptocurrency governance. In the process of achieving this goal, what does community governance include? What does governance have to do? It is described in the next section.

3.2 Community power

Community governance includes ecological community and user community governance. Initially, the core team organizes the implementation and exercises power.

3.2.1 The Right to Decide

Only the holder of the chainless coins has the right to decide. This power refers to the relevant system of public companies.

Adjustments related to interests are proposed by the community and voted for. So there are already cases of community governance.

Release the tasks of the ecological community. There are already cases of community governance.

Improvement proposals for the ecological community. There are already cases of community governance.

Nomination and dismissal of the community core operating team. There are already cases of community governance.

Adjustment of incentives.

Establishment, modification, and supplement of the community system.

3.2.2 Supervisory right

This  rightrefers to the relevant system of public companies.

Election of the head of the Audit.

Select the audit unit.

Approve the audit report.

Approve core teamwork reports.

Approve the Foundation report.

Chainless is a transparent centralization system. So Audit is easy, and the core team and the foundation’s early reports do not differentiate too.

3.2.3 Referral right

Please recommend applicable products and recommend all comments relevant to the community, including improvement options.

3.2.4 Commendation right

Referrals community members for contributing rewards.

Reviews recognize community members.

3.2.5 Right of Disposition

Participate in community member promotion or demotion discussions and final decisions.

Selection and adoption of automated management machines.

The formulation and implementation of the penalty charter.

3.3 The constituent structure of the user community

The community has a five-tier hierarchy with 12 levels represented by the Chinese zodiac: 1 Rat, 2 Cow, 3 Tiger, 4 Rabbit, 5 Dragon, 6 Snake, 7 Horse, 8 Sheep, 9 Monkey, 10 Chicken, 11 Dog, 12 Pig.

3.3.1 Core layer

Initially organized by the initiator. Core layer members are in the real-name system in the community, participate in community assessments, and are responsible for the development of the community. If the perennial level is insufficient, it will be replaced by a higher level. The core members are also a 12-level upgrade system. The core layer consists of a team of fewer than 15 people per community and no more than 30 people for both ecological and user communities. Mainly researching and improving community governance and continuously promoting community transparency and automation. The core layer is too essential and is the community’s soul, as detailed separately in the next chapter.

3.3.2 Mentor level

It is the teacher of the team and the community, divided into four levels, namely 9 monkey, 10 chicken, 11 dog, and 12 pig.

3.3.3 Management layer

It is the backbone force of the community, divided into four levels, namely 5 dragon, 6 snake, 7 horse, and 8 sheep.

3.3.4 Contribution layer

They are community members divided into four levels, 1 rat, 2 cow, 3 tiger, and 4 rabbit.

3.3.5 Currency holding layer

Do not participate in community activities. Do not enjoy the dividends paid to the above contributors. There is only passive income from holding coins. Have community voting rights.

3.3.6 Relevant instructions

In the dividends of the entire chainless system, in addition to the holding dividends, there are also contribution dividends, 15% of which are contributed dividends. The chainless system is quantified with levels and represented by zodiac signs. Using the Chinese zodiac sign means the possibility of adopting NFT in the future. IF who gets the set should be very meaningful. 15% is not absolutely unchangeable. It can be adjusted according to the actual operation.

How should the interests of token holders and contributors be distributed? Web3 is like cryptocurrency; shareholders, employees, and users are one body. The distribution model should also be different from the company’s personnel composition. The most significant difference is “Oneness,” so it should be the right thinking to motivate behavior that promotes Oneness. Through activities, the share of contributors is continuously increased, and the chainless system’s new value is created simultaneously. When the total share remains the same, the percentage of contributors increases. The core of “Oneness” is the Currency as the link, and the currency holder is also a contributor. The chainless user community system is a highly automatic system that replaces the company’s high operating costs. In addition to the profit model of the community itself, the system relies on transactions as the primary Profit.

How to understand “oneness,” one can imagine ownership by the whole people. Whole-community ownership is a form of realization of ownership by the entire people. It is not owned by the whole people(community) in name, nor is it owned by the core team (bureaucratic group), but it is “owned by the whole people” through Currency as a link. Ownership by the whole people without money as a link is an illusion. Of course, the connection of coins is not egalitarian, and interests must be distributed reasonably. In the previous chapter, we designed the distribution of coins to be about 50% each for coin holders and contributors, and contributors can also get community contribution dividends, which are equivalent to bonuses, so we get a 15 %proportion.

Note that community dividends correspond to indirect incentives, and easy quantifiable contributions to mentors and group hosts are part of direct incentives.

Contribution dividends are divided into 12 levels. The difference between the highest and the lowest is 100 times.

Members of the core layer also refer to the 12-level dividends; from its characteristics, the lowest level should be calculated from the management level; the 5th dragon level is the softest core member. Core members are paid salaries.

If members are inactive, they will be downgraded. Please take a look at Section 7 for the last elimination system.

All chainless coin holders have voting rights, and locking and staking tokens do not affect voting rights. It is consistent with the rules of equity.

The mentor layer belongs to the public domain, the management layer belongs to the private domain, and the user community is a community system that combines the public domain and the private domain.

3.4 Sources of Community Income

If the community wants high income, it needs to do e-commerce. The chainless user community is an e-commerce of financial products. The community has wealth management and insurance products, advertising revenue, and agency products. All income and distribution of the community are transparent. The chainless community is like a financial supermarket.

Why are WeChat Merchant and Pinduoduo not as popular as live broadcasts? Because the KOL credit and product prices are low. In other words, trust and transparency. That’s why we designed the mentor layer. The management layer is equivalent to the group host responsible for communication with group members and group management. The group host can invite instructors to the group to explain. Mentors can invite group members through the group host. So as you know, the group is a private domain.

Items that may apply:

Financial projects. For example, in the first year, insurance will give 10-20% of the marketing expenses, which the community will distribute. The renewal premium is reduced to 2% for the second year until the end.

Agent Home Cloud 15% sales fee.

The agency APP is earn advertising fees, which are charged according to clicks and downloads.

Discount agent for coins, add 1-3% to the discount price.

Other community-related projects.

3.5 Distribution of benefits at all levels

3.5.1 Currency holding layer

Don’t participate in community activities. Not entitled to dividends from tier contributions. There is only passive income from holding coins.

Earn coins for participating in transactions, accumulating points, and advancement.

50% of the transaction fee income is used for currency-holding dividends.

50% of other income is used for holding currency dividends. Mainly refers to technology income.

3.5.2 Contribution layer

They are members of the community and are divided into four levels, namely, 1 rat, 2 cow, 3 tiger, and 4 rabbit.

1. Rat

100 points or more.

Two upgrade methods for the rat level are pulling new and trading.

Earn coins for participating in transactions, accumulate points, and upgrade.

There are basic points for pulling new ones and one point for pulling a person; there are 3 days, 9 days, and 21 days for the Pull new explosions Rewards, and the corresponding prizes are 3, 6, and 15 points, respectively. For example, on the 21st, the new strongman rewards scored 48 points. Please look at Chapter 2, Section 3, the mining incentive method of the user community.

Everyday active users who click like someone can participate in the monthly Explosions Unexpected Rewards activities. If they get the Unexpected Rewards, they will get 30 points, and the rate of the Unexpected Rewards is 1%. If they don’t get it, they will get 3 points every day click for a month. If they leave more than 10 comments monthly, they will get 5 points. (irrigation message judged by the machine, deducted 30 points) Writing an article is recommended to the message board once, get 30 points. This recommendation is an intelligent algorithm; the algorithm will guide through the user pool according to the number of like, steps, replies, retweets, and fans of the article recommended to the message board, equivalent to the system message home page, and individuals see the home page is different, individuals see the home page belongs himself. Everyone sees differently in the design of thousands of faces. The entire recommendation algorithm is modeled after YouTube.

The last eliminations are made in monthly upgrade events; if newcomers score higher than they will be eliminated at the last of 1%. It happens when activity, transactions, and activities do not contribute enough to the progress of the community. Please look at the last elimination system in Section 7 for the elimination method. It is also the robot that conducts the final inspection. The reason why so few are eliminated is to take care of the grassroots.

2. Cow

300 points or more.

The upgrade of the cow level is the same as above. The last eliminations are made in monthly upgrade events; if newcomers score higher than they will be eliminated at the last of 2%. It happens when activity, transactions, and activities do not contribute enough to the progress of the community. Please refer to the last elimination system in Section 7 for the elimination method. It is also the robot that conducts the final inspection.

3. Tiger

600 points or more.

The upgrade of the Tiger level is the same as above. The last eliminations are made in monthly upgrade events; if newcomers score higher than they will be eliminated at the last of 5%. It happens when activity, transactions, and activities do not contribute enough to the progress of the community.

4. Rabbit

900 points or more.

The upgrade of the Rabbit level is the same as above. The last eliminations are made in monthly upgrade events; if newcomers score higher than they will be eliminated at the last of 10%. It happens when activity, transactions, and activities do not contribute enough to the progress of the community.

3.5.3 Management layer

It is the backbone of the community. The group host is divided into four levels, namely 5 dragon, 6 snake, 7 horse, and 8 sheep.

The group host is responsible for community management, general counseling, and group member cohesive role. The group host is generally the group organizer, distributing the group’s interests and the stakeholder’s benefits. For example, in the cooperation of the mentor, is responsible for allocating the mentor’s interests. A group member can join different groups without affecting their profits but affecting the group host’s profits.

The social relationship of the group forms a CID according to the recommendation code. The group here is not limited to the social software for the chainless system. However, the group host will report to the chainless system community for registration, and the community will find group members for confirmation. Others cannot determine the relationship between the group host and group member based on the chainless system but can only know how many group members the group host manages. The group host has a personal homepage in the chainless community and an evaluation report of the robot.

Group has a two-tier structure. The group host A’s downline B then develop group C is considered A group host’s management, B downline C then creates group D is not considered A’s management. The host of group A is unfamiliar with the business and invites a tutor, and the host of group A may be paid. Group members can join anyone they want, but they can jump to groups on the same line. If D jumps to group A, it is no longer a group member of groups C and B. No relationship changes if one jumps to another group outside the A chain. This design is to avoid the duplication of the distribution of benefits. Deliberately retaining the group-hopping relationship is maintaining the competitive factor and the elimination mechanism.

5. Dragon

Manage more than 1000 group members, regardless of the group size. Generally, a group of no more than 200 people is suitable. At the same time, the dragon level manager has more than 100 points of the rat level eligibility.

However, according to the activity level of the group member, transactions, and contributions to the community, there is a 1% elimination rate. Please look at the last elimination system in Section 7 for the elimination method. It is also the robot that conducts the final inspection.

6. Snake

Managed more than 5000 group members, regardless of the group size. At the same time, it has more than 300 points of cow-level eligibility.

However, according to the activity level of the group member, transactions, and contributions to the community, there is a 2% elimination rate. Please refer to the last elimination system in Section 7 for the elimination method. It is also the robot that conducts the final inspection.

7. Horse

Managed more than 25,000 group members, regardless of the number of groups. At the same time, it has more than 600 tiger points eligibility.

However, according to the activity level of the group member, transactions, and contributions to the community, there is a 5% elimination rate. Please refer to the last elimination system in Section 7 for the elimination method. It is also the robot that conducts the final inspection.

8. Sheep

Managed more than 125000 group members, regardless of the number of groups. At the same time, it has more than 900 rabbit points eligibility.

However, according to the activity level of the group member, transactions, and contributions to the community, there is a 10% elimination rate. At the same time, it has more than 2000 points of rabbit level.

Being able to manage 125,000 group members is already very valuable. The group host has the conditions to be a business, but it may be complained, which will affect the status of the chainless system. 125000 as two levels.

3.5.4 Mentor level

The community and community teachers, divided into four levels, respectively, are 9 monkey, 10 chicken, 11 dog, and 12 pig. Tutors are divided into two categories.

Community mentor is an experts in various fields. The mentor has at least dragon-level qualifications. The community mentor proposes and recommends improvement plans. Community mentors finally recommend all the solutions offered by group members.

An excellent group host can hold community mentors, But there are requirements to reach the level of mentors. Mentors are equivalent to KOL or KOC, with four levels.

Temporary mentor: It is the representative of product recommendation. Endorsement by a community mentor, responsible for explaining recommended products in the community. If there is a problem with the product, there are inaccuracies, and the community mentor will be jointly and severally responsible. The group host, who has not yet reached a community mentor, serves as a temporary mentor. Temporary mentors do not participate in contribution distribution.

The demotion and punishment of the mentor are proposed by the core team and approved by the community. It is different from the group host. The group is a private domain and has a small scope of influence. The mentor is in the public domain. The core team represents the community’s overall interests and is in the perspective of safeguarding the community’s overall interests.

Mentors can also be group hosts; the community is not limited, and you will be eligible if you reach the level.

9. Monkey

With 0.35 million fans, dragon-level qualification.1% elimination rate. Please refer to the last elimination system in Section 7 for the elimination method. It is also the robot that conducts the final inspection.

10. Chicken

With 1 million fans, dragon-level qualification. 2% elimination rate.

11. Dog

With 3.5 million fans, dragon-level qualification. 5% elimination rate.

12. Pig

There are 10 million fans, dragon-level qualification. 10% elimination rate.

3.5.5 Core layerCouncil)

The core team controls community development and gradually transitions to the Council . The Council is the highest community institution of the chainless community. The members of the council have real names in the community. The core layer is the operation team, which is responsible for developing the entire chainless system. The team takes 1-3% of the total Profit of the platform. Only when the chainless system develops will team interests be the greatest. They have the power to formulate development policies. The parts of the community powers in Chapters 2 and 3 that are not clearly defined are their powers, including the right to supervise and dispose of illegal activities in the community, such as the handling of reports, such as the identification method of dead-heart fans, etc. The core team also has different identities. Every step is like a community member. A basic salary is internally allocated, initially paid by the Project initiator, and later paid by chainless system from 1-3%.

The community core team is subject to a three-party assessment, community group host assessment, mentor level assessment, and the chainless system core team HR assessment. Community assessment accounts for 50% of the power. The core team of the chainless system begins with the company mechanism.

The technical development of the core layer is outsourced to other technical teams. In the early days, the technical fee was paid by the ecological fund of the chainless system. The core team has technical, legal, community operations, and chainless product experts. Technical and product experts are responsible for solving application problems and refining solutions. Community operation experts themselves should have the ability to mentor. The upgrade assessment of technical and product experts depends on the approval of their solutions. The proposal is not necessarily theirs, but they must propose the final improvement plan. The standard is whether the quality of the assessment plan can benefit the chainless system.

Technical experts, product experts, and mentors must have unique and irreplaceable value when they enter the core layer and sign contracts.

3.6 Examples of Benefit Distribution

Income distribution varies widely, and there is no uniform template. This article illustrates the general framework of income distribution through examples.

The principle is that unrelated people have no interests. But the system is composed of all participants; absolutely irrelevant items do not have. From the perspective of lying down earning, making currency holdings a lying down earning behavior is the fundamental driving force for the continuous growth of the system. Lie-down earning means that the growth cycle of the system grows in tandem with the chainless coins, and the coins are guaranteed dividends. It is a balance of long-term and short-term interests. All distributions of benefits below reflect.

3.6.1. Financial Management projects

Let’s take an insurance company as an example. Insurance is a financial item and a business that manages more than one million “employees” and is the most comparable. The flow of grassroots insurers is vast. Because new insurers are unpaid, there are many types of insurance, and some insurance programs can pay up to 30% of the insurance amount to the insurer. Generally speaking, projects with long-term returns, such as wealth management projects, do not have such a high initial benefit, but giving 10% of the insurance amount in the first year is the usual way to motivate grassroots insurers, including the upline benefit for the insurance agent, the total is 15-20%. This part of the money takes about 4 years for the insurance company to earn it back. You can only get 80% of the money if you redeem that year. The insurance company wants the insurer’s connections and the insurer’s explanation. Newly recruited insurers have new connections. Although the number of eliminations is large, the connections remain. The insurer’s connections and credibility, as well as his business level, determine his grades. Connections are the ability of the group host, and explanation is the mentor’s ability. It is difficult for grassroots insurers to have this ability without long-term training, resulting in a high turnover rate. Insurance companies do not advertise and rely on this churn rate to screen out suitable insurers. Credibility is an enterprise’s capability and an insurance company’s stable investment capability. Insurance companies only need to make a brand name.

As a chainless community, it is a good channel, and the cooperation of community mentors and temporary mentors (insurance experts) may replace the first function of the insurer: the function of explaining. It is a public class. Finish the public course, is it possible to form a group? Can. However, if a group member buys insurance, group host A who pulls him into the chainless community for the first time, will share the benefits in this order because the connections are host A. An enterprise must have rules for a long time. An insurance company’s internal superior and subordinate relationship system ensures the system does not collapse. The second function of an insurer: does a group host replace connections. The group host should be more credible than the insurer’s and group host’s trust. In this way, the function of the grassroots insurer does not exist. Generally speaking, there is a renewal fee for insurance, and the insurer is still useful. From the second year’s renewal to the end, the insurer still has a small income of about 2%. Currently, the insurer’s role is to collect money, etc. Is the renewal commission added when the insurance commission distribution goes upline? I don’t know; at least 1% of the commission is on the insurer’s upline.

The above is the distribution system of insurance. The chainless community requires 15% of the initial fee to connect with an insurance company. The group host completes the subsequent renewal, which has nothing to do with the community mentor. Community mentors will be in big trouble if this insurance is a scam. Insured applicants can ask temporary tutors if they have any questions. Temporary tutors can form their group, or others can be the group host, called group B and service groups.

The allocation is like this. 7% of the 15% is directly given to the policyholder; that is, the policyholder is 7% cheaper than going now to the insurance company, the two group host get 4%, the group host A, who has a relationship, receives 2%, and the group host B who works gets 2%. Mentors take 2%. Another 2% is the Profit of the chainless system. All token holders share the profits proportionally. The insurance company gives 2% of the renewal period, and the chainless community only needs 1%, which benefits the insurance company. Group host B gets 0.7%, and the chainless system gets 0.3%. Group host B is responsible for after-sales service. Other people may jump to similar groups if the service is not good. Why does group host B get 0.7%? He wants after-sales service and invites tutors to provide services, maybe paying a fee.

It can be seen that after the first level is cut, the service is more professional, the trust is better, and the entire insurance industry has changed. However, if the grassroots insurer divides 7% to the policyholder, living will be challenging unless he is a part-timer.

There are many financial products, and the basic principles are the same. The principle is to cut off redundant levels.

3.6.2 Divide advertising fees recommend APP for user

This type of APP is, first and foremost, a product of the chainless ecosystem; it is connected to a chainless wallet.

There are two types of APPs, one is a mature product, and the other is a new product.

Mature product:

It is a mature product that acquires customers through a chainless system. When the user registers, according to the customer acquisition, the chainless system will be charged a customer acquisition fee, financial customers are more expensive, and other systems are cheaper. The entire fee is allocated in the ratio of 50% to the registered user, 15% to the user’s direct group host, 20% to the mentor, and 15% to the chainless system. The proportion of the relevant parties is similar to the above examples of insurance.

New product:

There must be a small group verification; the first group verification of 100 people, no problem, then 500 people can enter the community. The acquisition fee allocation ratio is 10% for group hosts, 60% for experimenters, 15% for mentors, and 15% for chainless systems. New products are mainly driven by the community, which is equivalent to helping the product succeed, obviously not purely for the benefit of customer acquisition. All early participants have early dividends according to the cryptocurrency rules; how to do it depends on practice.

3.6.3 Agent product sales

Generally, it does not act as an agent for the sales of physical products because the chainless system is a financial feature, and products unrelated to finance are not the agent in principle. However, the Family Cloud is hardware and a supporting product of the chainless system, which is sold as an agent. That is the agent sales of peripheral financial products.

3.6.4 Example of agency benefit distribution

Agent Home Cloud Hardware:15% agency fee, distribution ratio. 8% of buyers, 2% of group A hosts, 2% of mentors, and 2% of group B owners are mainly responsible for after-sales. 1% for chainless systems.

3.6.5 A discount agent for coins

Large transactions affect the stock price. Generally, significant shareholders are willing to carry out large discount transactions in the market not to affect the stock price. It is also divided into two types:

Proxy the token associated with the chainless system and the token outside system.

1. Proxy for the token of the associated chainless system

Firstly, it’s bulk, plus 1.5% on top of the buyer’s discount. If the discount is 10%, the last seller’s selling price discount is 11.5%. 1.5% distribution: A group host shares 0.5%, the mentor receives 0.5%, and the chainless system receives 0.5%. There is no concept of Group B. There are other related persons whose distribution methods are not listed here.

2. The agency token outside the chainless system.

This coin must be recommended by the mentor who is responsible. Add 3% to the buyer’s discounted price. For example, if the discount is 10%, the last seller’s selling price discount is 13%. 3% distribution:

A group host shares 0.5%, a mentor receives 2%, and the chainless system receives 0.5%. There is no concept of Group B. There are other related persons whose distribution methods are not listed here. To increase the price so much is to limit the token outside system.

3.6.6 Profit from ecological support funds

In the early stage, contribute to the improvement and improvement of the ecological project recommendation test. When the purchase or the adoption of the ecological project is completed, another 5-10% will be rewarded to the community. Take the 10% reward, for example, 6% reward to the relevant personnel, which the project recommendation organizer will allocate. Referring to Bitcoin’s proposal, the organizers are all reputable technical experts, and the organizers of chainless projects are usually mentors, core team members, or group hosts. 4% is used for the overall distribution of the chainless system.

3.6.7 Other community-related projects

It is the most uncertain part of the system. The user community itself has traffic, and it has two characteristics of public domain and private domain. It is a perfect sales system. The group host and mentor can be the sales team of other companies, and the fee for the chainless user community is around 2%. Lower than any advertising and e-commerce system, it will cause revolutionary changes in the sales of non-physical products. Financial e-commerce, different from physical e-commerce, has not been conquered, and Web3 may destroy financial monopoly. Huge potential to be practiced. Chainless System focuses on financial e-commerce and innovation, and it is our principle to be a franchise store, not a department store.

Product sales, advertising fees, and after-sales services can be 10-30% of the price. This part of the cost can avoid advertising waste through group hosts and mentors.

Unlike physical products, financial products cannot be understood without sufficient explanation. The above examples illustrate the distribution of interests among members of the chainless community. The benefits of each financial product are different, but the point of view of the distribution by contribution remains the same. The group host has no salary, and the mentor has no salary. Their contribution makes the products more secure, and the products are cheaper. The core of de-intermediation is to remove useless nodes. Two are reserved for valid nodes, and neither is a chain relationship. Therefore, the system and interests are transparent, Just like buying a ticket on a bus without bargaining. High-quality service and trust relationship, the structural design of the chainless community compensate for the risks caused by the lack of experience and relationship of “leek.”

3.7 The last elimination system

The last elimination refers to the number of people who exceed the final elimination rate to be promoted. Assuming an elimination rate of 1%, it was originally 100 people, then 5 people exceeded the number of fans of the original last person, and the last person was 1%. the original 100th elimination. Then the new 5 people were promoted a total of 104 people. And the indicator of the new last place is the new standard. Such an algorithm is unlimited, but the bottom line is getting higher and higher. The mentor and management levels are eligible for the last elimination. Elimination is the need for competition; the higher the position, the more intense the competition.

3.8 summary

The above five layers constitute the user community system of the chainless system. By holding coins and participating in the community, users gain more interests and voices than Web2. The decision-making power of the core layer will move towards community autonomy as the project matures.

A group must have a good group host and enough active people for the group to be attractive. Groups must have characteristics, and the same is true of communities. Chainless communities have financial features. Mentors are equivalent to KOL, facing the public domain, and have similar effects to Twitter; Group hosts are oriented to private domains and have similar effects to WeChat. The group host requires relationship ability, and the KOL requires professional ability. Facebook and Little Red Book are examples of Internet web2 that combine public and private domains. They are department stores, and we are a franchise store that combines public and private domains. The abilities required by the KOL and the group host are different. A good KOL may not be a good group host. This combination is based on their strengths. None of the Web2 projects do this. In the current web2 system, the interests are inclined to a few people. Through the arrangement of public and private domains of chainless communities, we hope to be fair to the interests of the silent majority. It is a social issue that cannot be designed but relies on community practice, as is the case with the excellent practice of Bitcoin.

Clicks do not calculate the advertising behavior of financial products in the chainless community. Still, it is finally realized by the introduction and promotion of the mentor, and the deduction of the turnover realizes the advertising fee. The mentor checks the advantages of its brand and products.

The profit distribution of the chainless community entirely considers the difficulty of “leeks” being bullied, and the profits of each link are visible. For the products recommended by the mentor, they must buy them.

The chainless system adopts the trial pool method for new financial products, starting from a small group and a group willing to take risks. The experimental period does not exceed 600 (100+500) people, and the recommended method is the same as the current YouTube intelligent recommendation principle. Customers willing to take risks are compensated.

The assessment indicators of the chainless community are all targeted. The mentor assessment is the number of followers, active followers, and comments for the last elimination.

For the group host, the last elimination is carried out by assessing the number of group members and active group members and the group’s activity.

The assessment of a contributor is closely linked to his contribution.

This chapter does not deal with the detailed rules for impeaching but gives this power to the core layer because we don’t know what will happen. It needs to be continuously improved in practice, and only after repeated repetitions can a perfect rule be formed. For example, is there a reward for impeaching? It may be more reasonable from the point of view of recovering losses. Another example is that there are no account restrictions. The chainless system will not limit user accounts alone. Instead, there is a multi-signature smart contract that restricts accounts. Under what conditions are applicable, and what details must be decided by the community at the beginning, not by the core team. The chainless community’s core team protects the chainless system’s security but never violates any private property.

Community co-governance, profits for contributors, and transparency of profits are the revolution of production relations started by Bitcoin and carried forward in the chainless system. Cryptocurrency has made many technological attempts but is weaker in incentives and governance and is inapplicable to Web3. Therefore, the actual application of cryptocurrency, like web2, has not been broken through. This white paper distinguishes between user communities and eco-communities using direct incentives and indirect methods to innovatively design incentive schemes for user communities that will enable real Web3 financial applications to generate alternatives to web2 finance. The ideas of incentive and governance in this white paper apply to the financial field and hopefully become a new idea and method to promote the development of Web3.

Because it is an attempt and exploration, the plan will be upgraded when implemented, and the specific upgrade plan will be discussed in the community.

Chapter 4 Composition and Development Methods of Project Personnel

This chapter includes the Composition of the Foundation and Advisory Board. Introduction to the project developer. Staff quota and operation mode of the core team. The most significant feature is implementing a minimalist thought, trying to meet the de facto standards shown by Bitcoin. Since the project is more complex than Bitcoin, it still looks ponderous.

4.1 Composition and tasks of the Web3.0 Development Foundation

The Foundation is a non-profit organization. In cryptocurrency, many project foundations replace the company to operate the project. Chainless Foundation is a non-profit organization that does not participate in the operation of Chainless.

The first mission of the Foundation: recommend and evaluate outstanding technical personnel. Purpose drives the development of the project.

The second mission of the Foundation: sponsor web3’s non-profit projects. The purpose is to promote the development of new industries.

Blockchain protocols all require coin issuance, different from the Internet’s basic protocols that are free and seriously hinder the development of new industries. There are many essential and unprofitable projects known as “public land.” The “public land” is important, but the profit model is unclear or absent. This type of project is the goal of foundation sponsorship.

After the project is applied for, the secretariat reviews it, and the foundation members recommend and vote for approval.

4.1.1 Funding Sources of the Foundation

If the sponsored project can be industrialized, it will return 2% of the profits to the Foundation. The Foundation of such projects does not hold shares and is not the primary source of funding for the Foundation.

The annual profit of the chainless system is 1% to sponsor the Foundation as a permanent source of profit for the Foundation.

Donations from all walks of life are accepted, either publicly or anonymously.

4.1.2 Personnel Composition of the Foundation

A new industry must have public land. There must be great contributors, just as the TCP/IP protocol contributed to the Internet. Unfortunately, due to the limited number of places in the Foundation, many people can’t join the Foundation. For contributors to the public land, the Foundation proposes award quotas and funds every year based on the budget to reward and sponsor contributors to the public land.

The Foundation consists of 9 members, all pioneers of new industries.

Temporary vacancy.

The Foundation holds 1% of the total number of chainless coins issued, a total of 20 million, of which the top four are 2.5 million each. The following 4 members are 1 million each. The remaining part is operated independently by the Foundation, which is used to sponsor projects on public land.

The Foundation has an annual report every year.

4.2 Composition and Tasks of the Web3.0 Development Advisory Board

Consists of 3 people.

Temporary vacancy.

Tasks of the Advisory Board:

Supervise and coordinate the compliance and legality of the project, and play a role in guaranteeing the project’s sustainable development.

It will play a role in promoting the strategic development and cooperation of the chainless system.

Solve the complex problems in the development of web3.

4.3 Composition and Incentive of the core team

4.3.1 Product and Programmer Staff

1. Product Design: Mr. Zhu Weisha

CV and job description

Graduated from the Department of Automatic Control, Beijing University of Technology. Mr. Zhu resigned from the Institute of Industrial Economics, Chinese Academy of Social Sciences; Yuxing Company was founded In 1991. And listed in the first batch of the Hong Kong Growth Enterprise Market in 2000. Sold the company in 2015 and participated in repurchasing the company in 2019. After that, Mr. Zhu is still the main shareholder of Yuxing Company and will serve as a consultant. Mr. Zhu’s characterized by rigorous scholarship, in-depth research, and an understanding of product design. In 2017, he began to study cryptocurrency. The writing of the chainless system white paper is based on his years of study and understanding, research results, and product skills. Hope to promote the healthy development of Web 3.0 through efforts.

2. Programming Mr. Li Bing

CV and job description

Graduated from Arizona State University with a Ph.D. in Computer Science and Engineering. Previous work experience at Lucent Technologies (Beijing) and IBM Research Center (New York). Since September 2020, Mr. Li has been a professor at the Zhuhai College of Beijing Institute of Technology.

Since 2005, Mr. Li has been focusing on the research and development of essential Internet software. Mr. Li has written over 1.3 million lines of code and accumulated rich experience in programming. GreatFree has been designed and implemented since December 2010, and the basic code has been tested for a long time. After comparing hundreds of existing concurrent distributed programming technologies worldwide, GreatFree is the first general distributed programming technology oriented to the Internet computing environment. It is still being improved continuously and is gradually evolving into a new programming language. The core program of the chainless system is implemented by Mr. Li alone using GreatFree. This point has excellent advantages for financial projects. Through efforts, GreatFree will become the primary Web 3.0 project development tool.

4.3.2 Product target

In short, together with our ecological community partners, we will jointly build a brand-new financial platform as the underlying platform of distributed finance and, at the same time, forge an efficient and reliable distributed system development tool.

4.3.3 Composition and vision of the core team The status quo of the cryptocurrency core team

Bitcoin does not have the concept of a core team; it is basically a “maintenance-free” automatic system. This structure is compatible with its product goals. Ethereum has a core team, and its core team is the Foundation that operates the Ethereum ecological community. According to Ethereum’s 2021 annual report(27), 48 million was spent in 2021. Only 5.1 million of these are general expenses to support the operation of the Ethereum Foundation team, including internal and external legal, accounting, and financial services fees; organization-wide subscription services, etc., such as data services, operational tools, and technical infrastructure. Internal operating expenses contain all expenses related to individual investments in the treasury management strategy and the salaries of all operational and administrative staff. One of the most puzzling is personal investment (individual investments), whether it is an investment in personal education or training. How many people can support this 5.1 million? According to the cost ratio 1:2, there are about 1.7 million labor costs, which does not include those who do not get paid; The number of unpaid staff members is unknown.

Looking at the Ethereum annual report has a lot of inspiration. They even entrust the distribution of sponsored project funds to the outsourcing team called the second layer, “Grants.” The third layer is called “Delegated Domain Allocators,” where the Ethereum Foundation works with external groups to jointly decide which teams within a specific scope to provide funds to. The Ethereum Foundation also provides funds directly to external groups, two ways to determine how to allocate funds efficiently. Defining the scope is very interesting and fosters several innovation points to be accurate. Delegating the responsibility to someone more experienced in the corresponding area is very informative. The core business is entrusted to the community team, so the Ethereum Foundation is small. According to Satoshi Nakamoto’s 7 principles of machine credit, there are trust links as few as possible, and point-to-point is the least. Funding releases and needs should be face-to-face.

Bitcoin doesn’t have a core team because it doesn’t need to. The main work of the core team of Ethereum is the distribution of funds. This distribution is necessary. They chose to cooperate with the community and refer to its opinions, which is correct. Ethereum represents the most advanced way of operating in the cryptocurrency field and is supported by members of the Ethereum community. The disadvantages are that the responsibilities and rights are unclear, the degree of transparency is insufficient, the efficiency is not high, and there is no transparent ecological community participation scheme. Reasonable size of the core team

On May 2, 2022, Netflix had a market value of 88.6 billion. He is a user platform, and all content is organized by himself, with a team of 10,000 people. On the other hand, YouTube is an ecological and user platform with ecological management, managing 50 million hosts, an estimated market value of 400 billion, and less than 1,000 core personnel. The two are typical differences between web1.0 and web2.0.

Berkshire Hathaway’s 700 billion, no matter how the size of the assets under management changes, his core team has never grown significantly, and the number of people has always been around 30. It is the model of investment management; It has no ecology and user community management. The investment target is only assessed but not managed.

Judging by the Ethereum salary, the core team is less than 10 people, and the maximum is not more than 15. Its primary function is to maintain and develop ecological communities through fund allocation. The model is similar to Berkshire Hathaway. Ethereum has fewer people but is not doing well. The obvious sign is that the project is seriously delayed, the goal is constantly changing, and the problem is obvious. As long as the ecology is developing, Ethereum cannot be a Bitcoin model; it needs management and has more managed content than Buffett’s company. The core team of the chainless system refers to the model of Ethereum. We plan to explore and improve Ethereum’s governance ambiguities to make operations more efficient. Chainless core team and Incentives

The fundamental goal of the core team: is to strengthen the bond function of the token, to link “users closely, employees and shareholders” to form a community of destiny. Promote the long-term upward trend of the currency price, making the project a lying-down earning project.

The core team has three tasks:

1. Organizing and operating the system ecosystem

2. Managing and running the ecological community

3. Managing and running the user community

For the ecological development of the chainless system and the operation of the ecological community, we refer to the experience of Ethereum and continue to develop in practice. The team is expected to be less than 15 people. Ethereum does not have a community of users. Operation of the user community, our target is also 15 people.

The chainless ecosystem includes the chainless ecological community. There is no strict distinction between the two in concept. However, it is the most significant project investment, accounting for 30% of the share.

The development of the chainless ecosystem is divided into four parts:

  1. technical team,
  2.  product team,
  3.  operation coordination team
  4.  ecological community operation team.

Becoming one of the most vital underlying ecosystems of Web3 is the goal of developing the chainless ecosystem.

The technical team responsible for system security, operation and maintenance, system expansion, and intelligent improvement is responsible for eco-community operations and all technology-related work. It is estimated that there are 3 people and a budget of 10 million coins. The person in charge is not determined.

Product team leader: Mr. Zhu Weisha Responsible for product identification and putting forward product improvement plans and product-related issues. Estimated that there are 3 people and 10 million coins. In addition, the association is responsible for the operation of the ecological community. Mr. Zhu no more takes coins.

Operations coordination team leader:  for the operation associated with being responsible for the operation of ecological communities and user communities, responsible for public relations, external speech, legal, personnel, administration, and other affairs, and is the general coordination team. Responsible for rapid revenue growth. Estimated that there are 4 people. 25 million coins.

Ecological Community operation team leader: Responsible for the distribution of funds for the ecological community and promoting the rapid development of the ecological community. It is estimated that there are 5 people, 20 million coins.

The user community is irrelevant to the Ethereum Foundation. But the user community is always there. Therefore, managing the user community is necessary. Otherwise, it is not part of the decision-making body. Just a place for polls.

User Community team leader:  Responsible for the rapid growth of the user community, responsible for the rapid growth of revenue, aiming at user satisfaction and improving project cohesion. Estimated that there are 10-15 people. Set up 3 operation centers North America, Europe, and Asia center. The center has three managers for the host, mentors, after-sales service, and business. In addition, the general manager may concurrently serve as the business manager. Estimated that there are 55 million coins.

The user community owns 30% of the coins, and the core team members responsible for the user community do not occupy 30% of the coins inside.

The core team owns 6% of the total coins belonging to the ecological community share.

Screen suitable candidates in project operations. Formation of the core team

The core team applies the governance methods of Chapter 3.

The team is hired globally, rewards are linked to performance, and world-class technology and capabilities correspond to high returns.

Early the core team with a salary. Reference Ethereum salary is not high.

The core team oversees organization and coordination, business outsourcing, and management innovation.

The team is formed in the same way as Ethereum. We will meet friends worldwide through interaction and find similar people with consensus. In the private testing phase of the project, we will start to find strategic investors and core team members with similar interests and choose the most suitable long-term strategic investors and core team members. The relationship between the core team and the company

Satoshi Nakamoto created a new production relationship with Bitcoin as a link, integrating computing power, programmer, and users, and its value is the “Watt steam engine” of the information age; the development of the community breaks through the traditional boundaries of the company, requires new forms of social organization to fit new production relationship.

The Ethereum Foundation still has legal personnel and other personnel; The chainless system also has more user communities. When users have problems in the blockchain, they rely on community members to solve each other. We evaluate group hosts and distribute long-term dividends according to their performance so that they can serve the group members. However, for the problems the group host cannot solve, someone still needs to study policies and improve products to solve the problem. Only when someone is ultimately responsible can the whole logic be completed. Who is ultimately responsible for the operation of the chainless system? From the perspective of the Ethereum Foundation, no corporate equity structure is now commonly called the core team.

The operating structure comprises a core team with profitable income and investment rights like Buffett, but without equity and control rights, and exercising ecological management power through influence. This structure is not a company in the modern sense because the complete form of a modern company does not exist. Nor can it be regulated by the current company law.

The chainless core team also has no equity, no control rights, only the right to operate, and is ultimately responsible for the operation of the chainless system. This operating right should not exceed the existing practice of Ethereum, and every innovation must be careful. The ideal state is that the core team is getting smaller and smaller. This kind of community decision-making, organized and operated by the core team, is similar to that of an elected government, but the scope is different. Here, it is only the management and operation of the community.

We have one more project Initiator than Ethereum, which is quite Satoshi Nakamoto. The Ethereum Foundation is equivalent to the Bitcoin community. The project Initiator does not participate in daily management but assumes the cornerstone responsibility for project development. Satoshi Nakamoto has taken this responsibility to this day. The project Initiator plays the role of checks and balances, and we do not see such checks and balances in Ethereum. A power without checks and balances will eventually do evil, which is the risk for Ethereum. The community, the team, and the project Initiator are both a community of interests and a relationship of checks and balances. As creators, Mr. Zhu Weisha, Mr. Li Bing ,and other personnel representing the project side will gradually withdraw from the core team. The community elects successors. The highest ideal is that the project runs like Bitcoin automatically. Satoshi Nakamoto left in two years, our system is more complicated than his, but the 3-6 years goal is suitable. Can not leave indicates the failure of the core team. Suppose the core team uses too many people, which will fail. Compared with YouTube, less than 100 people show the structural competitiveness of Web3. There is an automatic mechanism in the market, and the purpose of management is to make the automatic tool smoother rather than inhibit the development of the market mechanism. A small government and a large society require automated operations, and manual intervention in operations is to assess the results of automated operations and make improvements based on the results.

How should a community beyond the company operate? YouTube is the best community project used in the Internet field, with 50 million hosts and 2 billion users. Management is entirely Indicatorization. She is our role model for the management of the community. For cryptocurrency projects, the automation of the ecological community is currently DAO, but it is not practical yet, and the allocation of funds in Ethereum does not use DAO. Is it possible to allocate funds automatically? We need to design quantitative indicators to allocate funds for chainless platforms. For example, we pay them for other project apps for the chainless system to attract traffic. This indicator can be quantified. The basic operation smart contract of the ecological community is not enough, and artificial intelligence is needed. There is no established model yet, and further innovation is required.

For the incentives of the Web3 ecological community, no mature plan can be used for reference and improvement. Due to the particularity of issuing coins, the ecological team and the project ecology are closely linked, which is different from the Web2 project. How to make good use of this feature must be explored and verified in practice. One thing is sure; we must lock the distribution of funds through smart contracts to achieve the goal of automatic distribution.

If you look at it from the company’s perspective, you will question the team structure. If one person cannot summarize all the information, it will cause omission and inconsistency, resulting in misjudgment. If you use a secretary, use a robot secretary. One person does heirloom works; others can make comments to modify and supplement them. We want to make the best model. The more people in a system, the higher the uncertainty and The more elevated the communication cost, not consistent with the Satoshi Nakamoto machine trust.

Projects have a development and a mature period, and the corresponding strategies differ. The community is the practice of democracy, and the group host will enable delegated voting. As long as the group host is sufficiently dispersed, the vote will reflect the true intention of the community. The shareholders meeting of listed companies is held once a year. Small shareholders lose their right to speak to the company, and the form of community is beyond the company’s decision-making mechanism. Nevertheless, the effective management mechanism of the community has enlightening significance for the effective management of society in the future.

In short, the community transcends the boundaries of the company and the organizational structure of the company. There is a separation of equity and management rights in traditional companies. The community is “equity,” and the control, management, and usage rights are concentrated together. Users are shareholders and employees, and operators are supervised in real-time. The meaning of this management right is very different from that of the company. YouTube does not care about the host, and the host does not enjoy the equity interests of YouTube. The chainless system core team exercises management over the community, equivalent to YouTube’s control of the host, and is entrusted by the host to manage the project. This delegation is equal to a representative; a community vote makes decisions; how much legal responsibility does a member of parliament have?

In the future, the core team will manage the community by adopting the idea of Satoshi Nakamoto and the method of YouTube, intelligent management based on indicators. Market competition is its fundamental mechanism, representing the most advanced community management. Web3 community management should constantly improve the level of intelligence. We will realize the automation of community management by releasing relevant robot management software tasks.

4.4 summary

Since Web3 is a very new field, the core team and company relationship section contains explanations to make it easy for everyone to understand the meaning of the core team.

The cryptocurrency space has the concept of unowned and owned communities. An ownerless community is an ideal state. Its checks and balances are reflected between the mining circles, the coin circles, and the core programmers’ circles, reflecting the high degree of system automation. A fully automated system community is not required. Who has the right to improve a system that cannot be fully automated? The participants in the system have rights. The community has the ultimate power over a system that depends on it. The core team is equivalent to property management and is a management organization serving the community.

The core team can easily be the actual controller in the owner community. Without checks and balances, expanding its power as a trustee is easy. The lack of checks and balances shown by Ethereum, in the chainless system, forms a check and balance force through the project initiators.

The success of Web3 depends on two mechanisms:

1. Utilize the application of artificial intelligence to reduce the entire operating cost and automate the distribution of benefits.

2. Through the community’s market competition mechanism and currency issuance mechanism, talents and applicable projects are selected worldwide.

With intelligence and community autonomy, the Composition of the core team will be small. As a result, the project generates huge distributable benefits, making it possible for participants to lying-earn money. The quality of a Web3 project can be judged by the size of the core team and the level of community operation. The smaller the core team, the better, and the bigger the community, the better.

The complete withdrawal of Genesis members marks the Formation of community autonomy, and the project initiators have always played the cornerstone role.

附录 白皮书引文

Appendix White paper citation

(19)  https://uniswap.org/

(20)  https://github.com/Uniswap

(21) https://github.com/aave/aave-protocol/blob/master/docs/Aave_Protocol_Whitepaper_v1_0.pdf

(22)一键成为区块链产品经理 郑嘉文、路蒙 2019-12-18

(23) Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World ,by Don Tapscott & Alex Tapscott 2016-3

(24) Moving beyond coin voting governance Vitalik Buterin 2021-08-16


(26) great free程序设计操作手册 李冰。


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