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Storecoin is a zero-fee, high-throughput, and decentralized cryptocurrency with a Governance of checks and balances.

If Ripple is taking on SWIFT, Storecoin is taking in the global $21 Trillion market of debit card and credit card purchases by making payments zero-fee for merchants, developers, customers, and users.

KYC/AML checks are required for securities law compliance

Our Vision

To become zero-fee, programmable payments infrastructure for the globe.

Our Token Partners

Our Mission

To become a zero-fee, programmable cryptocurrency that can compete with VISA-like networks and beyond

NOTE: Storecoin is a new public blockchain, not an ERC20 token.

Storecoin is secured by Dynamic Proof of Stake (DyPoS), a new consensus protocol.

All money is trust, and belief in $STORE is on the rise

Storecoin Summary

  • A fast ledger at +5,000 TPS with thousands of nodes participating in consensus
  • Zero-fee payments for developers, merchants, users, and customers
  • Zero-fee payments are paid for with yearly inflation capped at 2% and pegged to the goal of 51% of the circulating supply being staked by dWorkers (store-of-value, security)
  • A Governance of checks and balances across features, leadership, and monetary policy
  • A decentralized security system to find and slash bad actors
  • Economic optionality to cut in wallets, banking infrastructure, and even nation-states into the Storecoin block reward in exchange for distribution of the $STORE zero-fee currency
  • Economic optionality in block rewards to solve for chargebacks and payment fraud
  • Has a path to the cash register but first will focus on gaining trust, adoption, security, and high amounts of store-of-value in the web and mobile application layer
  • Will support the development of crypto-powered apps -- apps that use $STORE for zero-fee payments and incentives (WebC not Web3)
  • Supported by an Ecosystem Fund focused on growing the tools and infrastructure to bring zero-fee, programmable payments to the globe
  • A growing community who believe in the Storecoin mission and vision -- currently in 56 countries!
  • On an engineering path for hundreds and thousands of transactions per second with hundreds of thousands of computers participating in consensus

The Problem

When accepting payments from credit cards, debit cards, and ACH, Merchants and Developers pay fees of +2.5% plus $0.30 for every transaction.

Merchants and Developers hate these fees.


The Opportunity

These transaction fees represent a $21 Trillion global opportunity for a trusted, high-throughput, and censorship resistant cryptocurrency.


Our Solution

Storecoin: The world’s first-ever zero-fee, programmable cryptocurrency that is decentralized, fast, secure, and supported by an enterprise-grade Governance that can be understood and trusted by the largest organizations in the world.


Why it Matters

To get distribution into cash registers, App Stores, and banking infrastructure around the world, Storecoin will cut distribution partners into its block reward.

Instead of getting paid by transaction fees, they’ll get paid with STORE tokens.


Why Storecoin Wins

Making programmable, p2p payments zero-fee while still generating revenue for its banking and financial partners is how Storecoin competes with VISA-like networks and beyond.

Storecoin aims to become the preferred cryptocurrency for permanently free, fast and scalable payments.

Speed
(per block)
Cost
(per transaction fees)
Scalibility
(transactions per second)
Storecoin (STORE)
*Estimates based upon our current R&D.
+100 milliseconds*Dependent upon the incoming transaction rate and parallelism achieved.FreePaid for with up to 2% yearly token inflation. Inflationary rewards grow as the number of decentralized workers grows
5,000+ TPS at launchusing 200 validators w/DyPOS built on Storecoin's BlockFin100,000+ projected TPSusing Masternodes and unlimited validators with DyPoS
See More
Bitcoin (BTC)
10 mins$0.40 to $4.00+3-7 TPS (Scalibility)+12000 active Miners
Ethereum (ETH)
13-15 secs$0.16 to $0.33+15-20 TPS+21,000 active Miners
Dash (DASH)
2.63 mins$0.39 to $0.58+48 TPS+4,800 active Masternodes
EOS (EOS)
*Claims from whitepaper and blog posts
0.5 secsFreePaid for with 5% yearly token inflation. Developers must buy and stake tokens to enable free transaction (a SaaS model)No data available, 50,000 claimed21 maximum Block Producers
Ripple (XRP)
2-4 secs0.00001 XRPEquivalent to a fraction of a penny1,500 TPS70+ Validators
Cardano (ADA)
*Claims from whitepaper and blog posts
20 secs~0.15 ADAEquivalent to $0.035 USD250 TPSNo data available for decentralization
Stellar (XLM)
3-5 secsFraction of a pennyFees go into a pool that is distributed back to the community via inflation spending1,000 TPS28 active Validators
Tezos (XTZ)
*Claims from whitepaper and blog posts
60 secsFees, but undeterminedNo data available
Neo (NEO)
15 to 24 secsFree for basic transactionsUndetermined fees for smart contact-based transactions1,000 TPS7 hard-coded Validators

How Storecoin compares to traditional, fiat-powered payment infastructure

Payment SystemSpeedCost
(per transaction fee)
Scalibility
(transactions per second)
Storecoin (STORE)
*Estimates based upon our current R&D.
+100 milliseconds*Dependent upon the incoming transaction rate and parallelism achieved.FreePaid for with up to 2% yearly token inflation. Inflationary rewards grow as the number of decentralized workers grows
5,000+ TPS at launchusing 200 validators w/DyPOS built on Storecoin's BlockFin100,000+ projected TPSusing Masternodes and unlimited validators with DyPoS
See More
Visa
Swipe Card: < 2 secs
Chip Card: < 5 secs
$0.10 plus a 1.51% of transaction feeUp to 24,000 TPS-5,000 TPS is generally believed for VISA1,600 network endpoints
PayPal
Less than 2 seconds for PayPal but 3-5 days for banks to process$0.30 plus %2.9, varies for foreign payments450 TPSCentralized servers hosted by PayPal
Stripe
Near Instant2.9% + $0.30 for each successful card charge20 TPS (rate-limited by Stripe)Likely near-instant payments
Western Union
A few minutes to a few days10% for small transactions
1% for larger transactions
30 TPSCentralized servers hosted by Western Union 500,000+ locations
SWIFT
1 to 5 days$15-$35 for Domestic
$15-$45 for International
350 TPSProvides communication for 10,000,000+ institutions

What Others Say about $STORE

By: Tony Perkins ( @TonyPerkins), founder of Red Herring and more

Source

Our Latest

  • Venture Capitalist Matthew Ocko joins Storecoin Team as investor, advisorLearn More
  • $STORE Community members want to host Storecoin meet-ups in these 64 cities across 39 countriesLearn More
  • Cryptocurrency news site Bitcoin.com highlights Storecoin’s unique governance modelLearn More
  • Testing on Blockfin, Storecoin’s consensus engine, grows to 220 validator nodes and 40 message nodes See Github Repo
  • Storecoin Creator Chris McCoy shares thoughts on future of blockchain, data and crypto tokens in interview with tech media legend Tony PerkinsLearn More
  • Visual Whitepaper, the precursor to Storecoin’s whitepaper, is released publicly Full Visual Whitepaper, Summary
  • Storecoin publishes an open-source proposal to increase throughput and decentralization in Tendermint Learn More
  • Project Fort Knox: Storecoin takes major steps to secure its code base with the help of the Amazon Blockchain Strategy Group Learn More
  • Storecoin achieves +10,000 Transactions-Per-Second with Burst Traffic and 21 Validator Nodes Learn More
  • BlockFin — our fork tolerant, auditable, and high throughput consensus algorithm — is released for internal peer review Learn More
  • Noah Ruderman, Facebook engineer, joins Storecoin as a Technology Advisor Learn More
  • Stephen McKeon, one of the nation’s leading thinkers on the economics of blockchain and cryptocurrencies, has joined Storecoin’s team of advisors. Learn More
  • Storecoin co-sponsors BPASE -- Stanford University’s Blockchain Protocol Analysis and Security Engineering 2018 Conference held Jan. 24 through 26. Learn More
  • Arrington XRP Capital makes Storecoin one of its first pre-public token purchases. Learn More
  • Chris McCoy will give a presentation about crypto economics on Jan. 24 at the Crypto Finance Conference in LA. Learn More
  • Storecoin, releases test 1 of 7 results for load testing of its Dynamic Proof-of-Stake consensus algorithm - Read Here
  • Chris McCoy, Storecoin's Creator, introduced Storecoin to an international audience at the Crypto Finance Conference in Switzerland this month. Learn More
  • Ari David Paul, the CIO of BlockTower Capital, joins as a Strategic Advisor
  • Mark Ramberg, formerly the GM of Amazon AWS Media & Entertainment, joins as our Platform and API advisor
  • Nate Lubin, formerly the Digital Director in the President Obama White House, joins as our Marketing and Communications advisor
  • Rajiv Patel of Fenwick and West joins to help Storecoin file patents for DyPoS Learn More
  • Blocktower Capital makes Storecoin its first pre-public ICO project.
  • TechCrunch publishes Chris McCoy's thoughts on the future of tokenization -- or Securitization 2.0 Learn More

Storecoin in the News

July 15, 2018
Governance is a Tough Nut to Crack

As well-known crypto commenter Nic Carter mused, "Creating a cryptocurrency corrupts... creating a billion-dollar cryptocurrency corrupts absolutely." Due to huge economic incentives at stake, getting token-holders to act in the interests of the community, rather than fixating on their own pecuniary gains, is a tall order. Storecoin is a zero-fee, high throughput blockchain whose most interesting feature is not a technical one — it's a human one.

It's creator, Chris McCoy, explains: "For today's public blockchains to move past prototypes and low usage dApps — to where entities trust a decentralized blockchain enough to process $10 million+ of utility -based daily transaction volume — blockchains need an enforceable rules engine that no centralization of power, that key network participants trust, and that is censorship resistant. To shape the future of trade and commerce, blockchains need an enterprise-grade governance [model] that is trusted, enforceable, and reaches finality in a democratic process."

Storecoin's governance is inspired by the US constitution, with consensus on change, McCoy explains, "reached by four separate branches that check and balance each other on protocol-level, key people, and monetary policy decisions". Another blockchain that relies on a constitution, EOS, has come in for flak, prompting its founder Dan Larimer to return to the drawing board to draft a new one. MakerDAO, meanwhile, has been conducting deep research into a "governance risk framework" that aims to diversify trust in trustless systems.

Our Team

We have been thinking very long-term about the potential for zero fee, programmable payments.

Chris McCoy

Chris McCoyFULL-TIME

Creator

16 years experience building internet and blockchain-based technologies. Chairman at Footprint, tools for blockchain ecosystems. Member of the Blockchain Initiative at the World Economic Forum's Fourth Industrial Center. Founded the 501(c)(3) Data4America. Invented YourSports.


Rag Kidiyoor

Rag BhagavathaFULL-TIME

Chief Technology Officer

Over two decades of building distributed messaging, social networking, and database technologies. Has been working with Storecoin Creator Chris McCoy since 2011. Previous Cloud Infrastructure Engineer @Apple (2011-2012), Frontend Architecture @Cisco WebEx (2006-2011).

+14 OTHERS

Jason Varner

Jason Varner

Analyst

10 years modeling economics for hedge funds, internet startups, and blockchains.


Jay Pal

Jay Pal

DevOps

30 years in building distributed computing technologies. Leads DevOps at Footprint -- a global product team shipping software 24/7 using continuous integration and continuous deployments.


Pablo Yabo

Ari Paul

Strategic Advisor

CIO at BlockTower Capital, angel investor, former PM for the UChicago endowment.


Mark Ramberg

Stephen McKeon

Cryptoeconomics Advisor

Finance professor at University of Oregon studying cryptoassets, security issuance, private equity, and M&A.


Mark Ramberg

Nate Lubin

Communications Advisor

Former Director of the Office of Digital Strategy @White House (14-16), Director of Digital Marketing for Obama for America (08, 12), Political Science @Harvard


Mark Ramberg

Noah Ruderman

Technology Advisor

Former Facebook software engineer studying privacy and cryptocurrency architectures with properties that scale


Mark Ramberg

Mark Ramberg

Platform Advisor

Led global business for Amazon Web Services’ activity in the digital media industry (11-15), currently a VP at Akamai, cloud expert, distributed computing innovator.


Antone Johnson

Antone Johnson

General Counsel

20 years experience as business and technology lawyer, startup advisor, and executive. Antone previously served as VP of global legal affairs at eHarmony and practiced corporate law at Wilson Sonsini Goodrich & Rosati (WSGR).


Rajiv Patel

Josh Lawler of Zuber Lawler & Del Duca LLP

Strategy Lawyer

Focuses on novel issues presented by developing technology including Blockchain (distributed ledger), artificial intelligence, robotics, virtual/augmented reality and internet of things.

Major Milestones

August 2018
Storecoin finalizes its Governance Paper for public peer review
July 2018
A Chief Compliance Officer is hired to work on money transmitter licenses in the United States and KYC compliance around the globe
BlockFin BlockFin is under development including API support
June 2018
Testing on BlockFin, Storecoin’s consensus engine, grows to 220 validator nodes and 40 message nodes
Testing begins on BlockFin’s underlying secure peer-to-peer communication infrastructure for resilience and message throughput
May 2018
The STORE Manager, Storecoin’s tool for dWorkers to manage their staking on the blockchain, goes into development
Testing begins on BlockFin’s – Storecoin's leaderless consensus protocol – underlying secure peer-to-peer communication infrastructure for resilience and message throughput
April 2018
BlockFin – Storecoin's leaderless consensus protocol – becomes patent-pending
  • The purpose of seeking patents is to protect the blockchain against malicious hard forks outside of its Governance.
March 2018
Storecoin achieves 10,000+ Transactions per Second (TPS) in a 21-validator node set-up and 159,000+ TPS in an 8-node setup.
Storecoin’s legal team builds a KYC/AML and Global Securities Law compliant plan to grow the project to +21,000 wallets before public launch
January 2018
Michael Arrington and XRP Capital, Ari Nazir and Neural Capital, Anthony Pompliano and Full Tilt Capital, plus 200 others close out Storecoin’s second, invite-only token sale
December 2017
Internal peer review begins for BlockFin, Storecoin’s consensus algorithm
August 2017
Ari Paul and BlockTower Capital plus 20+ other partners close Storecoin’s first milestone-based and invite-only token sale
May 2017
Storecoin is formed
Dynamic Proof of Stake (DyPoS) is invented and research for BlockFin begins

Long-Term Treasury Plan

Storecoin's Treasury is set to operate on a long-term, +thousand-year time horizon.

Use of Treasury

NOTE: Storecoin will be endowed with 1% of all block rewards

Treasury Schedule
Sold in up to six milestone-based token events
Allocated for distribution to incentivize participation in the Storecoin Ecosystem. Also to incentivize the Team, for the first 100 years.
See Schedule
Locked Up in a +1,000 year emission schedule giving the future Storecoin non-profit Genesis block Treasury to help Storecoin grow currency adoption, forever.
See Schedule
To cover token generating event costs

CEO, CTO, and CSO have 8-year vesting with 3 month cliffs

All Team has 4 year vesting with 3 month cliffs

Advisors have 2 year vesting with 6 month cliffs

Incentive partners have milestone-based vesting

How big can this be?

Storecoin can become the leading zero-fee currency in the $21 Trillion debit card and credit card market (Medium-of-Exchange) while also competing for a slice of the $100 Trillion global wealth market (Store-of-Value).

Storecoin

+8-YEAR ROADMAP

Storecoin Launch
  • High-throughput consensus, up to 5,000+ transactions per second
  • Up to 220 validators; 22 launches the protocol
  • It is permissionless to perform work for the protocol but KYC/AML data is required for all types of decentralized workers; this enables future global KYC/AML compliance
  • achieves censorship resistance because of the growing number of decentralized workers securing the protocol; rewards for workers grow as the number of workers grows; rewards are paid through token inflation capped at 2%/year
  • The Storecoin Ecosystem Fund launches
  • Key patents are secured to protect against malicious hard forks outside of Governance
  • A secure engineering and CI/CD process is built to protect private keys from theft by any and all project contributors
Wallet Released
  • Wallet distributes private keys
  • Private keys distributed to owners
ZERO-FEE, P2P PAYMENTS
Storecoin Growth
  • Up to 20,000 validator node participation
  • 50,000+ transactions per second
  • Once a threshold of 220 validators are reached, Decentralized Security Guard nodes (dGuards) are added to find bad actors throughout the protocol
  • Masternodes/eAgents are introduced for better throughput once +300 Validators are reached (Level 2 scaling)
  • The Storecoin Security Fund begins accruing block rewards
  • Communication and Voting for Governance is hosted by decentralized Govnode workers making Governance censorship resistant
  • U.S. Money Transmitter Licenses achieved
  • moved to a non-profit foundation
Store-of-Value Achieved
  • 51% of the STORE circulating supply is staked by decentralized workers (dWorkers)
  • 49% of the circulating supply is available for zero-fee, p2p payments
Developer API
  • Wallet APIs for a programmable p2p currency
  • Built for mobile and web app developers
  • Wallet is like Stripe but for STORE tokens
$STORE PAYMENTS MATURE
APIs Mature
  • Stripe-like Wallet APIs enable third party app developers to build on top of the Storecoin blockchain using STORE tokens in their apps
  • The Storecoin Ecosystem Fund accelerates adoption of Wallet
  • Developers stake tokens to use Wallet; this helps prevent DDOS attacks
In-App Incentives
  • Powers in-app, incentivized API calls with
  • Developers register their app and choose APIs
  • Users earnby taking incentivized API calls
  • cApps are the first design space for
In-App Payments
  • Powers in-app, fee-less payments with
Smart Contracts
  • Native protocol support for smart contracts
  • Smart contract client libraries in different languages
  • Smart contracts pave the way forto move into the cash register
High-throughput Transactions
  • 250,000+ transactions per second
Global Consensus
  • 222,000+ Validator nodes
STORE-AS-A-PLATFORM
Ready for Cash Registers
  • Using smart contracts, Storecoin can solve for Chargebacks
  • Merchants wanting to accept zero-fee payments would stake a small percentage of inventory to insure against potential chargebacks
  • Decentralized Service Agents – sAgents – review and reach consensus on all Chargeback cases. A smart contract then executes
Payment Fraud Supported
  • Users stake tokens to file fraud tickets
  • sAgents review fraud tickets from customers
  • If approved, the fraud is reviewed by the non-profit (the non-profit makes a final determination on early fraud cases)
  • Fraud refunds are paid for by the Storecoin Security Fund and/or by equally using the stake of all dWorkers
  • If payment fraud grows, dWorkers and the non-profit are both equally incentivized to fix fraud through Governance
  • Governance will likely reach consensus on new features and monetary policy to reduce future fraud
Global KYC/AML Compliance
  • KYC and AML checks are compliant with the laws and national security demands of 190+ countries; this logic is hard coded into all decentralized worker nodes
  • If the laws of country X prevent transactions from being processed by decentralized nodes in country Y, the Storecoin protocol will support this natively, on chain
  • A long-term, security-first approach to building globally compliant infrastructure for zero-fee, p2p payments will give Storecoin developers the best opportunity to be embedded into banking and financial infrastructure around the globe.
$STORE AS GLOBAL CURRENCY
Click to expand

ABOUT STORECOIN

Storecoin is a zero-fee, high-throughput, and decentralized cryptocurrency with a Governance of checks and balances – similar to the checks and balances of the United States Constitution.

If Ripple is taking on SWIFT, Storecoin is taking in the global $21 Trillion market of debit card and credit card purchases by making payments zero-fee for merchants, developers, customers, and users.

Zero-Fee Transactions for Developers, Merchants, Users, and Customers
True Decentralization
High-Throughput Transactions
On-Chain and Off-Chain Security
Governance with Checks and Balances
Dynamic, Inflationary Rewards pegged to staking -- capped at 2% per year
Flexible block rewards enabling STORE to be distributed to the global masses

Storecoin's native currency, STORE, uses a sustainable inflationary monetary policy to achieve zero-fee transaction fees for merchants, developers, and end users. Inflation is dynamically pegged to the number of tokens staked by dWorkers, who are in turn rewarded for contributing resources to the protocol's validation, governance, security, and scalability mechanisms. The rate of inflation grows proportionally to the growth of total value staked, reaching a hard cap at 51% of total supply staked: at this limit, annual token inflation flatlines at 2%. This 51% gives Storecoin high levels of Store-of-Value while enabling the blockchain to retain its zero-fee, programmable payments utility.

The real-time state of economics and the pricing of security are determined on a block-by-block basis by its Dynamic Proof of Stake protocol (DyPoS).

Storecoin strives to take the Web 3.0 ethos one step further, leveraging a unique on-chain governance model similar to the U.S. Constitution's checks and balances system. This additional layer of trust and enforceability provides Storecoin with the necessary security and censorship resistance required to attract Fortune 500 companies and entrepreneurs-alike to build on its zero-fee, programmable payments platform.

To get distribution into cash registers, App Stores, digital wallets, and banking infrastructure around the world, Storecoin will cut $STORE distribution partners into its block reward. Instead of getting paid by transaction fees, they’ll get paid with $STORE tokens.

Making p2p, programmable payments zero-fee while still generating revenue for its banking and financial partners is how Storecoin competes with VISA-like networks and beyond.

About Dynamic Proof of Stake (DyPoS)

Overview

Today’s newer generation of blockchains are making tradeoffs between scalability and decentralization.

High-throughput transactions with true decentralization can exist and must exist in order for these new currencies to be censorship resistant.

Storecoin is on the way to achieving hundreds of thousands of transactions per second with hundreds of thousands of computers securing the network.

The economics of our Dynamic Proof of Stake (DyPoS) protocol incentivize it while the Blockfin consensus engine enables it.

Where Storecoin’s Dynamic Proof of Stake fits in

The market of permissioned vs. permissionless consensus algorithms and blockchains

Click to see blockchains using each algorithm

It starts with BlockFin, our consensus engine

BlockFin is a fork-tolerant, decentralized, high-throughput, and 2/3 Byzantine Fault Tolerant consensus algorithm being invented and built by the Storecoin team. It is patent-pending for the purpose of preventing malicious hard forks outside of Governance – otherwise it will be open sourced for any non-DyPoS use case, in any industry.

Why Fork Tolerance Matters

In the late 1860’s, gasoline was a waste product thrown into rivers and fields by the oil refineries. It was John Rockefeller’s Standard Oil that invented a way to refine the waste and turn it into gasoline. This invention gave rise to the automobile industry and beyond.

Today, public blockchains have their own waste: chain forks. Since the longest chain wins in consensus, chain forks become wasted compute (and electricity). This results in lower transaction throughput.

Storecoin’s BlockFin consensus engine turns this “waste” into near-instant block production.

How? BlockFin moves away from the “winning node creates the new block” paradigm to a new paradigm where all nodes assemble transactions into pre-created empty blocks while validating them in three, asynchronous stages. There are no chain forks in BlockFin because there is no “add-one-block-at-a-time” construct. New blocks are produced in a pipeline.

Storecoin calls this invention “fork-tolerant”.

Fork-tolerance is how Storecoin achieves high-throughput with true decentralization.

How Blockfin works with DyPoS

The 5 Principles of BlockFin

BlockFin allows the Storecoin blockchain to achieve high-throughput and true decentralization without the need for sharding, off chain transactions, level 2 scaling, etc.

1 Fork tolerant
Blocks are assembled in parallel because chain forks are not an issue. This results in high-throughput.
2 Auditable
Every read/write request is recorded with the accessor's signature, so all operations are auditable.
3 Leaderless
All validators participate in consensus – and are rewarded for it – resulting in a non-zero sum consensus.
4 Decentralized
Leaderless participation results in true decentralization as participants earn rewards for 100% of their work.
5 High-Throughput
Fork tolerance alleviates the need for a globally serialized process of new blocks. This improves throughput.

Learn more about BlockFin at http://storeco.in/blockfin

The Five Decentralized Workers of DyPoS

Decentralized Workers (dWorkers) earn Storecoin tokens as block rewards or interest for running various types of Storecoin nodes on their computers and/or phones to scale, secure, host, and govern the blockchain.

NOTE: The sAgent will launch alongside smart contracts in 2021+

Click to expand
Expected to
come online
Q3-Q4 2019
Q3-Q4 2019
Once a throughput threshold for 300 Validators is reached
Once a security threshold for 220 Validators is reached
By 5/17/2021, four years after Storecoin was formed

The Six Engines Powering DyPoS

Dynamic Proof of Stake is made up of six interdependent engines.

Each engine is based on similar dynamic supply and demand principles as Uber Surge Pricing.

Dynamic (Zero Fee) Transactions
Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 2%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)
Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. BlockFin is the only true decentralized consensus algorithm because of its leader/delegation-free consensus engine.  Validators share block rewards proportional to their work done in the block validation process. This means every validator earns a reward for every block they help process. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards
Dynamic Block Rewards

Dynamic, yearly token inflation capped at 2% pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 2%. Rewards are paid out as follows: participate in consensus , store the data , and scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security
Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the bad actors. 25% is paid to the Security Fund to help cover future payment fraud. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)
Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called, encrypted agent or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances
Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

Dynamic (Zero Fee) Transactions
Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 2%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)
Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. BlockFin is the only true decentralized consensus algorithm because of its leader/delegation-free consensus engine.  Validators share block rewards proportional to their work done in the block validation process. This means every validator earns a reward for every block they help process. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards
Dynamic Block Rewards

Dynamic, yearly token inflation capped at 2% pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 2%. Rewards are paid out as follows: participate in consensus , store the data , and scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security
Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the bad actors. 25% is paid to the Security Fund to help cover future payment fraud. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)
Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called, encrypted agent or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances
Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

The economics of DyPoS

Store-of-Value and protocol network effects create long-term economic value

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How STORE is both a Store-of-Value and a Medium-of-Exchange

Storecoin uses both economic rewards and caps on rewards to incentivize for 51% of the blockchain’s circulating token supply to be utilized as a Store-of-Value (digital gold) while 49% is utilized as zero-fee, programmable payments infrastructure (Medium-of-Exchange).

Ideal circulating supply in Storecoin

How Store-of-Value is achieved

A maximum of 2% yearly new token inflation keeps transactions zero-fee for developers, merchants, users, and customers.

These inflationary rewards are pegged to the percentage of the circulating token supply, incentivizing up to 51% of the supply to become a Store-of-Value

As inflationary rewards grow, more dWorkers will stake. This grows both protocol network effects and Store-of-Value properties. As the price of STORE grows, the total contract value of all tokens staked grows. As the total contract value grows, Storecoin will become even more of a secure Store-of-Value.

How Zero-Fee Transactions are Financed

Transactions are free for users and developers because they’re paid for with inflationary rewards capped at 2% per year. Award amounts are dynamic, based upon the total amount of staking amongst the decentralized workforce.

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How Dynamic Block Rewards are Allocated

Decentralized Workers earn up to 2% inflationary block rewards to perform work and supply compute for the blockchain. Rewards are determined by the amount of staking from dWorkers. 80% of the block rewards are paid participate in consensus , store the data , and scale the blockchain; 20% is shared between security, governance, processing power, core blockchain operations, and more.

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How the zero-fee STORE token is distributed to the global masses

To get distribution into cash registers, App Stores, digital wallets, and banking infrastructure around the world, Storecoin will cut $STORE distribution partners into its block reward.

Instead of getting paid by transaction fees, banking and financial partners will get paid by $STORE tokens. This is a major economic innovation across traditional finance and cryptocurrency.

Making programmable, p2p payments zero-fee while still generating revenue for its banking and financial partners is how Storecoin competes with VISA-like networks and beyond.

ACQUIRERS/ PROCESSORS
CARD NETWORKS
BANK/ ISSUES
GATEWAYS
WALLETS

Staking incentivizes for decentralization and on-chain security

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dWorkers have consumer-friendly tools to make long-term economic decisions about staking

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Why will consumers spend their STORE if it’s going up in value? Why will merchants accept STORE if it’s going down?

Removing the transaction fee will always make it cheaper for buyers to purchase using STORE and more profitable for sellers to accept STORE.

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Ongoing Research in Economics

  • Introducing a stablecoin backed by block rewards
  • Lowering inflation to its minimum while ensuring positive ROI for dWorkers
  • Cost to participate for dWorkers as it relates to their tenure of staking
  • Incentivizing dWorkers for earlier participation (incentivizing network effects)
  • Economics for solving chargebacks and payment fraud using a new type of decentralized worker – the sAgent

How DyPoS is secured

The Network Effects of Security and DyPoS

The strength of Dynamic Proof of Stake is that it aligns the economic incentives of all stakeholders for more staking, therefore more worker participation, therefore more protocol decentralization, therefore more security.

How Zero Fee Transactions are Secured With Bonds

To prevent Storecoin from a DDoS attack or from the blockchain being flooded with spammy transactions, Storecoin adds a refundable – with interest! – security bond to each transaction.

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The Storecoin Threat Level System

The Storecoin Threat Level System powers real-time market prices for the Six Engines of DyPoS. The System threat level algorithmically updates as transaction volumes rise and fall. As threat levels rise, the cost of spam and attacks rise too.

Severe

The network is under attack (DDoS, spam), a large volumes of incoming transactions, the number of validators online dropped below BFT threshold, and validator misbehavior is observed by dGuards during consensus

High

The nodes are reporting imminent attack (DDoS, spam), transaction volume is unusually large, number of validators online is nearing BFT threshold, and consensus rounds slow down due to disagreements

Elevated

Signs of attack (elevated number of invalid transactions), not all validators are currently online, and consensus rounds are repeated due to disagreements

Guarded

Unusual number of transactions and not all validators are currently online

Low

No known threats

The Cost of Cheating > Ever Winning

Storecoin’s BlockFin consensus protocol is Byzantine Fault Tolerant (BFT) and implements slashing (confiscating or burning the deposit) as a punitive measure for misbehaving entities in the system. As the Threat Levels increase, so do the prices for getting caught attacking the network or deviating from protocol. These dynamic Threat Levels ensure that the cost of getting caught will be greater than winning.

dGuards “find the rats” for Storecoin

Storecoin’s decentralized security guards (dGuards) patrol the network continuously and mitigate the chances of attackers winning. If dGuards reach consensus on an attack, they are rewarded with 100% of the burnt stake or burnt stake for all bad actors and/or transactions. Storecoin’s Security Branch makes the final determination on tickets filed by dGuards before punitive measures are taken.

How Dynamic Security Works(with dGuards)

Decentralized Security Guards, or dGuards, secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the found “bad” actors. The other 25% is paid to a security fund that refunds found payment fraud on the blockchain (ETA 2021).

dGuards run full nodes and download the latest blockchain state.

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Why Governance matters

Governance helped trade and commerce shape the world

Simply, Governance is a rules engine that enforces contracts and laws which in return injects trust into markets that require trust – markets like trade and commerce. History has shown us that as trust increases, the amount of trade and commerce increases too.

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The problems with blockchain Governance today

For today’s public blockchains to move past prototypes and low usage dApps – to where entities trust a decentralized blockchain enough to process $10 Million+ of utility-based daily transaction volume – blockchains need an enforceable rules engine that has no centralization of power, that key network participants trust, and that is censorship resistant.


Public blockchains need a democratic and trusted Governance

To shape the future of trade and commerce, blockchains need an enterprise-grade Governance that is trusted, enforceable, and reaches finality in a democratic process.


Storecoin’s Solution to Governance

Storecoin’s solution is a decentralized Governance where there is no centralization of power and all Changes are enforceable, consensus on Change is reached by four separate branches that check and balance each other on features, leadership, and Monetary Policy decisions.

How Storecoin’s Governance compares

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How checks and balances work

Separation of Powers in Storecoin’s Governance

Governance is inspired by the checks and balances of the United States Constitution. Storecoin’s Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) Monetary Policy requires Governance approval (there is no Fed).

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The 10 Principles of Storecoin’s Governance

Storecoin’s Governance takes a system that has been vetted for hundreds of years – the U.S. Constitution – and removes most of the politics by replacing it with technology, while also ensuring censorship resistance, absence of collision, and decentralization of power.

1 Any $STORE owner can participate in Governance by staking and becoming a dWorker - but they must vote
2 Only one vote per dWorker - no matter the size of their stake (there is no plutocracy) (there is no delegation)
3 Any issue on a ballot will reach finality in a democratic voting process of checks and balances
4 Change in possible through Governance but change is difficult as each dBranch chamber has different incentives
5 Governance enable changes to features, key leadership, and monetary policy - monetary policy is most sacred
6 Only the Judicial Branch can propose Monetary Policy changes for a vote by the dBranch (there is no Fed)
7 The Community has a path to create change - even when not having a vote in Governance (a democracy)
8 To secure the network when it's at Severe Threat Level, security-level fixes can be made outside of Governance
9 Hard folks can be decided by Governance but any hard fork outside of Governance will be agressively defended
10 Storecoin can operate forever using a 1% block reward endownment and +1,000-year Treasury Schedule

Organizational Chart of Storecoin’s Governance

For the first four years – until 5/21/2021 – the Storecoin organization has executive power over the blockchain. After, Governance will decide all changes to features, leadership, and Monetary Policy.

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How Checks and Balances Work in Storecoin

Change is possible, Change is democratic, but Change is hard. Also, fixing Security breaches takes priority over checks and balances.

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How Governance is Hired(and fired)

Checks and Balances prevent collusion, determine how key leadership is hired and fired, and keep it permissionless for dWorkers to participate (but they must KYC/AML check with Governance and be limited to only one node per individual or company/entity).

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The Governance enables any issue to reach finality with consensus

How the dBranch can overrule the non-profit

Simply put, Governance in blockchain limits the centralized power of core developer teams. Storecoin’s Governance spreads influence to the far edges of the network ensuring the core developer team can be overruled while Change is difficult.

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Change in Governance is possible but it becomes more difficult as protocol network effects and Store-of-Value properties grow

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The Charter will release in its upcoming Governance Paper

How a censorship resistant Governance works

How Governance Would Look – if not censorship resistant

The centralized way, using an app hosted by a centralized entity

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How a Censorship Resistant Storecoin Governance Works

The decentralized way with a dApp hosted by Govnodes worldwide

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dWorkers have a consumer-friendly dApp to study new Change Proposals, discuss, debate, and then vote

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Our first design space: Apps not dApps

Our Vision for Zero-Fee, Crypto-Powered Apps (cApps)

In 1879, Thomas Edison brought commercial light bulbs to the world. These light bulbs eventually changed how we work, how we play, and how we communicate

By 2019, Storecoin will bring zero-fee, crypto-powered transactions to millions of apps, to trillions of API calls, and to thousands of mobile and web developers.

Zero-fee, crypto-powered payments will open up a new platform for digital innovation – and beyond.

The Market Case for Zero-Fee, Crypto-Powered Apps

Zero-fee cApps are a new category for cryptocurrency and a new platform for payments.

Why Apps not dApps?

Solving for zero-fee payments inside of apps instead of becoming a dApp platform for new currencies to be created puts Storecoin on a more practical path to achieving minimum viable protocol, minimum viable trust, and high levels of Store-of-Value.

The app layer focus is the same path taken by Bitcoin.

NOTE: dApps might be premature until decentralized, high-throughput, and secure base layer protocols exist. Storecoin is hyper-focused on its base layer protocol before expanding into new platforms for payments.

What apps benefit from Storecoin?

Any app that needs to grow its user base faster, accelerate the adoption of key user actions, and introduce payments with zero fees will benefit by developing on top of the Storecoin blockchain.

Where Storecoin will get adoption

  • Apps where sign up is a key user action
  • Apps where successful onboarding is a key user action
  • Apps where inviting other users is key to user growth
  • Apps with a need for micropayments
  • Enterprise apps solving specific use cases like scheduling and e-signatures
  • User-generated content and editing sites
  • Consumer social networks
  • Enterprise messaging apps
  • Enterprise ERP systems
  • Social games

How trust in STORE grows STORE into new environments

(into new platforms for programmable money)

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How Storecoin incentivizes adoption

The Network Effects of Storecoin and Trust

All money is trust, cryptocurrency included. Money works as a medium of exchange because people believe in it. If it won’t be accepted in a transaction, then it has no value. For cryptocurrency to develop trust, it needs to be used by people. TheWallet attempts to solve trust for the Storecoin cryptocurrency.

Our Wallet-based Distribution Strategy

Storecoin will power a Wallet API for developers to integrate storecoin tokens directly inside of their web or mobile app.

Third Party Apps will integrate the Storecoin Wallet so each user account in the app has a crypto wallet. Apps can assign actions – or crypto-powered API calls – to micro-units of storecoins so each time a user takes an action, they earn the storecoin cryptocurrency. They can then exchange storecoins for other cryptocurrencies using a decentralized exchange. From there, they can move into cash/fiat.

Between the token layer and the app layer, there is a protocol-powered Wallet API allowing the Storecoin cryptocurrency to natively be distributed inside of third party apps (not dApps). Storecoin, Inc. develops and supports these Wallet APIs for third party developers.

A secure unit of value allowing the owner to access services and/or data from the Storecoin Blockchain.

The secure decentralized algorithm enabling new blocks of transactions to get created, confirmed, and added to the public blockchain.

A digitized, decentralized, public ledger containing the history of every Storecoin transaction.

Third Party Apps will integrate the Storecoin Wallet so each user account in the app has a crypto wallet. Apps can assign actions – or crypto-powered API calls – to micro-units of storecoins so each time a user takes an action, they earn the storecoin cryptocurrency. They can then exchange storecoins for other cryptocurrencies using a decentralized exchange. From there, they can move into cash/fiat.

Between the token layer and the app layer, there is a protocol-powered Wallet API allowing the Storecoin cryptocurrency to natively be distributed inside of third party apps (not dApps). Storecoin, Inc. develops and supports these Wallet APIs for third party developers.

A secure unit of value allowing the owner to access services and/or data from the Storecoin Blockchain.

The secure decentralized algorithm enabling new blocks of transactions to get created, confirmed, and added to the public blockchain.

A digitized, decentralized, public ledger containing the history of every Storecoin transaction.

How the Storecoin Wallet Works

Once Third Party Developers integrate the Storecoin Wallet into their apps, every user on their app can have a Storecoin wallet. Storecoin can even power fee-less payments inside of apps. Apps that build on top of Storecoin will be called crypto-powered apps – or cApps.

Wallet is business-model-as-a-service for Developers

How Storecoin Scales Globally

Storecoin will require Know Your Customer (KYC) and Anti-Money Laundering (AML) checks for all decentralized workers.

Why? Because governments around the world won't trade their finance and banking laws for the innovation potential of p2p payments.

With KYC/AML data for its decentralized workers, Storecoin software nodes will be regulatory-compliant on a country-by-country-basis giving the Storecoin blockchain a unique advantage to being embedded in traditional banking and financial infrastructure around the world.

How global KYC/AML compliance grows adoption

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The Storecoin Developer Ecosystem

A coalition of organizations that have entered into long-term relationships with Storecoin as its exclusive cryptocurrency to be integrated into enterprise and consumer-facing apps.

The Storecoin Ecosystem Fund

Storecoin’s Ecosystem Fund will make equity-based investments into application-based companies that may be early Storecoin developers. From Storecoin’s 33% Incentivization Pool, developers will also be awarded STORE tokens to kickstart their Wallet networks. Storecoin can also airdrop tokens into the Wallets of users from its ecosystem funded companies, further growing the use of STORE.

How to help Storecoin grow

Storecoin Project Schedule

Storecoin is an ambitious and long-range p2p project currently in R&D.

We’ll make available up to six regulatory-compliant token events only as key milestones are achieved. You can see an updated list of all key milestones at http://storeco.in/milestones.

Storecoin is committed to Doing The Right Thing as the blockchain is researched, built, and funded.

2017
May
May

1Storecoin R&D begins

  • Blockchain Architect added
  • Early engineering team added
  • R&D begins
  • Green Paper is started
  • Amazon funds Storecoin R&D with AWS credits
August 2017
August 2017

2FIRST TOKEN EVENT
(7% OF TREASURY)

  • Viable testing network set-up
  • Storecoin Green Paper is released
  • Scalability testing begins
  • Security testing begins
December 2017
December 2017

3SECOND TOKEN EVENT
(4% OF TREASURY)

  • Orange Paper released
  • The BlockFin consensus algorithm is released for internal R&D
  • Storecoin Roadmap Announced
  • Pomelo Paper released
  • Governance Paper released
  • Storecoin Wallets grow to +1,000
Note: Storecoin is still executing these milestones
2018
Q1
Q3 2018

4THIRD TOKEN EVENT
(3% - 5% OF TREASURY)

  • Economics and Security Papers released
  • Open Source Development begins
  • Storecoin Wallets grow to +5,000
2019
Q1
2019

5FOURTH TOKEN EVENT
(17% - 21% OF TREASURY)

  • Storecoin v1 Test Network released
  • Scaling Paper released
  • Storecoin Token gets issued to the wallet of all Token Buyers
  • Public Network v0.1 launches
  • Storecoin Wallet SDK launches
  • Storecoin Wallets grow to +22,000

Join the Storecoin Community, Earn a Tee-Shirt

Start at http://storeco.in/community

Build your app on top of Storecoin

http://storeco.in/developer

Contribute Code to the Storecoin project

http://storeco.in/code

Peer Review upcoming Research

http://storeco.in/review

Help Validate the future Storecoin Blockchain

Apply at http://storeco.in/validate

Become a dGuard to keep Storecoin secure

Apply at http://storeco.in/dguard

Host eAgent Masternodes to scale Storecoin

Apply at http://storeco.in/masternode

Run a Messagenode to host the blockchain

Apply at http://storeco.in/messagenode

Run a Govnode on your phone to host Governance

Apply at http://storeco.in/govnode

KYC/AML checks are required for securities law compliance

DISCLAIMER

Nothing herein is intended to be an offer to sell or solicitation of offer to buy, Storecoin tokens or rights to receive Storecoin tokens in the future. In the event that Storecoin conducts an offering of Storecoin tokens (or rights to receive Storecoin tokens in the future), Storecoin will do so in compliance with all applicable laws which may include the Securities Act of 1933 and the rules and regulations promulgated thereunder, as well as applicable state and foreign law. Any offering for sale to US Persons in a regulated transaction will be pursuant to a registration statement qualified by the Securities and Exchange Commission, or an applicable exemption from the registration requirements.