Earn a Storecoin Tee-Shirt ✔️ +10k TPS in our latest load tests

Stay updated on Storecoin

Storecoin is a zero-fee, high throughput, and decentralized cryptocurrency with a Governance inspired by the U.S. Constitution.

Storecoin is secured by Dynamic Proof of Stake (DyPoS). DyPoS is a new protocol for public blockchains.

Note: Storecoin is a public blockchain, not an ERC20 token.
STORE will be a hybrid Currency and Platform token.

KYC/AML checks required including country-by-country checks for securities law compliance

Our Token Partners

Our Vision

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

What Others are Saying about Storecoin

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.
0.039 secsFreePaid for with up to 2% yearly token inflation. Inflationary rewards grow as the number of decentralized workers grow.
10,100 TPSin a 21-validator test setup with DyPoS built on Tendermint159,700+ TPSin a 8-validator test setup with DyPoS build on Tendermint5,000+ 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, flat-powered payment infastructure

Payment SystemSpeedCost
(per transaction fee)
Scalibility
(transactions per second)
Storecoin (STORE)
*Estimates based upon our current R&D.
0.039 secsFreePaid for with up to 2% yearly token inflation. Inflationary rewards grow as the number of decentralized workers grow.
10,100 TPSin a 21-validator test setup with DyPoS built on Tendermint159,700+ TPSin a 8-validator test setup with DyPoS build on Tendermint5,000+ 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

Our Team

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

Chris McCoy

Chris McCoyFULL-TIME

Creator

15 years experience building internet and blockchain-based technologies. Chairman at Footprint, tools for blockchain ecosystems. Member of Blockchain Initiative at the World Economic Forum's Fourth Industrial Center. Founded the non-profit 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

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.


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

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


Mark Ramberg

Stephen McKeon

Cryptoeconomics Advisor

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


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.

Our Latest

  • Storecoin Creator Chris McCoy shares thoughts on future of blockchain, data and crypto tokens in interview with tech media legend Tony PerkinsLearn More
  • Pomelo paper, the precursor to Storecoin’s whitepaper, is released publicly Full Paper, 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

Our Mission

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

Click to expand

The Case for Zero Fee, Programmable Payments

Since the first ever digital transaction Western Union in 1921, digital payment innovation has grown the possibilities of of commerce and trade.

From merchant card networks like VISA (1958), to online banking and bill pay (1994), to mobile WAP payments (1997), to the current wave of mobile payment apps, digital transactions have expanded global commerce and trade.

Digital transactions aren't free though! Fees create friction in usability and adoption, limit the potential of micropayments, and are ultimately a tax on consumers, merchants and developers - the demand-side for payments and currency adoption.

Who earns the fees? The supply-side banks and FinTech companies , of course! Collectively, they share a cut of digital payments, earning +$0.10 plus another +1.51% per transaction.

ACQUIRERS/ PROCESSORS
CARD NETWORKS
BANK/ ISSUES
GATEWAYS

Consumers, merchants, and developers pay A LOT in fees. If this money went into their pockets instead of to banks and FinTech, trade and commerce may increase further – faster.

What about public blockchains which produce a new, censorship resistant, decentralized, and programmable form of money called cryptocurrency?

Major blockchains of today are not zero-fee for consumers, merchants, or developers either!

PUBLIC
BLOCKCHAINS
Bitcoin (BTC)
Ethereum (ETH)
Dash (DASH)
EOS (EOS)
Tezos (XTZ)
FEES PER
TRANSACTION
$0.40 to $4.00+$0.16 to $0.33+$0.39 to $0.58+Zero-fee for users but not for Developers or MerchantsFees, but undetermined

While blockchain-based payments *can* exponentially expand the way we trade, what we trade, and the amounts we trade – including operations by robots, machines and IoT – until transactions are zero-fee for demand side users, the potential of this technology may not be reached.

The Storecoin blockchain exists to make p2p payments zero-fee, highly programmable, and near-instant. First inside of apps smart contracts and dApps the cash register and beyond.

We’re on a journey to expand global commerce and trade – one zero-fee transaction at a time.

Major Milestones

May 2018
Proof-of-Community, the way for Storecoin followers to become official Community members, is launched
April 2018
Storecoin’s BlockFin consensus algorithm 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

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 new token inflation capped at 6%
  • 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
FEE-LESS, 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)
  • A U.S. Constitution-inspired governance with checks and balances launches before 5/27/2021
  • 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
Developer API
  • Wallet APIs for a programmable p2p currency
  • Built for mobile and web app developers
  • Wallet is like Stripe but for storecoins
PLATFORM
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
High-throughput Transactions
  • 250,000+ transactions per second
Global Consensus
  • 222,000+ Validator nodes
CRYPTO-POWERED APPS (cApps)
Smart Contracts
  • Native protocol support for smart contracts
  • Smart contract client libraries in different languages
  • Smart contracts create a second design space
  • Developers stake tokens to build dApps on
Chargebacks Supported
  • being prepared for acceptance in cash registers around the world
  • Retailers would stake tokens to insure for chargebacks and more
  • Smart contracts enable a new decentralized worker called the sAgent to reach consensus on global Chargeback cases where is used
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.
DECENTRALIZED APPS (dApps)

Long-Term Treasury Plan

How Storecoin will incentivize all sides of its network across multiple, milestone-based token-generating events ultimately giving it a Treasury and Governance that lets it operate on a +thousand-year, very long term time horizon.

Use of Treasury

Treasury Distribution

Sold in token generating events
See Schedule
Allocated to the team, across history
See Schedule
Allocated for distribution to incentivize participation in the Storecoin ecosystem
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

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 2020, 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.

dApps vs. cApps

In a dApp, the p2p platform token is used to power transactions and/or compute in the smart contract layer.

In a cApp, the p2p payment token is used inside of a centralized application as a medium of exchange.

As the Storecoin blockchain proves it can decentralize, scale, secure, and govern p2p transactions, STORE will evolve from a payment token into a hybrid payment and platform token.

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

Zero-fee cApps are a new category and a new design space for public blockchains.

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

Click each section to learn more about Storecoin

About Dynamic Proof of Stake (DyPoS)

It starts with BlockFin, our consensus algorithm

BlockFin is the patent-pending, high-throughput, and decentralized consensus algorithm invented and being built by the Storecoin Team.

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.

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.

Life of a Storecoin Transaction with BlockFin

Key patents are being secured to protect against a malicious hard fork outside of Governance. Storecoin’s technology will otherwise be open-sourced to the public

#1 Alice installs Storecoin wallet and generates a secret key and public key pair for her

#2 Alice looks up Bob using Bob’s public key . Alice wants to send 10 STORE* tokens to Bob

#3 Alice creates a transaction for 10 STORE tokens and signs it with her private key

Click to expand

#4 Alice submits the transaction to Storecoin’s decentralized network of validators

Click to expand

#5 The receiving validator queues the transaction into the next available free block along with transactions received by other validator nodes

Click to expand

#6 When the block gets full with transactions, the validators approve it with a 3-phase validation process. In each phase the validators sign the block with their approval

Click to expand

#7 Alice’s account is debited with 10 STORE tokens and credited to Bob’s account

Click to expand

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.

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 6%. 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 6% 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 5%. Rewards are paid out as follows: 80% to process consensus and to 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 100% of the burnt stake of bond from the "bad" actors. 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 6%. 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 6% 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 5%. Rewards are paid out as follows: 80% to process consensus and to 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 100% of the burnt stake of bond from the "bad" actors. 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.

Where Storecoin and our DyPoS algorithm fit in

The market of permissioned vs. permissionless consensus algorithms and blockchains

Click to see blockchains using each algorithm

The economics of DyPoS

How Zero-Fee Transactions are Financed

Transactions are free for users and developers because they’re paid for with inflationary rewards capped at 6% per year. Award amounts are dynamic, based upon the total amount of staking amongst the decentralized workforce.

Click to expand

Staking incentivizes for decentralization and on-chain security

Click to expand

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 to process, store, and scale the blockchain; 20% is shared between security, governance, processing power, and core blockchain operations.

Click to expand

How Dynamic Inflation Works

Inflationary block rewards are capped at 2% per year, but the amounts awarded are dynamic and are based upon the total amount of staking amongst the decentralized workforce. In short, the more staking, the more block rewards for workers to earn. This approach incentivizes for maximum decentralization and protocol security, while keeping transactions zero-fee for users and developers across all programmable environments.

Dynamic Inflation Schedule
Staking FromStaking ToInflationary Rewards
90%100%6.00%
80%89.99%5.80%
70%79.99%5.60%
60%69.99%5.40%
52.51%59.99%5.20%
51%52.5%5.00%
45%50.99%4.75%
40%34.99%4.50%
35%39.99%4.25%
30%34.99%4.00%
25%29.99%3.50%
20%24.99%3.00%
15%14.99%2.00%
10%14.99%1.50%
0%9.99%1.00%

Why is 51% important?

Protocols are in constant conflict of becoming a store of value (digital gold) vs. a medium of exchange (censorship resistant, programmable payments).

Store of Value (SoV) is important because it gives the Storecoin blockchain security through decentralized participation.

Medium of Exchange (MoE) is important because it gives Storecoin a demand-side use case: zero-fee payments for users and developers, across any programmable design space where the Storecoin blockchain supports APIs.

Recognizing this, Storecoin’s founding monetary policy incentivizes for an optimal 51% of the protocol to be staked in exchange for 2% inflationary rewards. This level of security is in line with the 59% of GDP spent by the U.S.A. to secure its dollar globally through legal, banking, and military infrastructure.

Note: Unlike The Federal Bank of the United States, Governance in Storecoin votes on monetary policy changes before they go into effect. This enables checks and balances for key economic decisions.

Interest payments incentivize for blockchain performance

Click to expand

On-chain security and decentralization create value

Click to expand

How DyPoS is secured

The Network Effects of Dynamic Proof of Stake

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.

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 100% of the burnt stake or bond from found "bad" actors.

Click to expand

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.

Click to expand

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.

Click to expand

Blockchains Need Enterprise Grade Governance

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 in – blockchains need an enforceable rules engine that has 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 that is trusted, enforceable, and reaches finality in a democratic process.

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 protocol-level, key people, and monetary policy decisions.

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.

1 Protocol-level, monetary policy, and leadership changes require consensus between key network participants
2 Change is difficult but the dBranch voters (decentralized workers) have a path to overrule the non-profit
3 Any issue reaches finality in a democratic process that includes deadlines and quorums
4 Enable monetary policy to evolve without a Fed-like governing body making unilateral financial decisions
5 Ensure that Governance is censorship resistant and not susceptible to collusion
6 Give every token holder the chance to create change – even when not having a vote in Governance
7 Come to an agreement on how to respond to hacks and loss of funds greater than 1% of the circulating token supply
8 Come to an agreement on whether to hard fork but aggressively defend against a hard fork outside of Governance
9 Allow the non-profit to make instant changes outside of Governance if the blockchain is at a Severe Threat Level
10 Operate forever using an ongoing endowment from inflationary rewards that supports core blockchain operations

How Storecoin’s Governance compares

Click to expand

How a checks and balances Governance works

The Four Branches of Storecoin 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).

Click to expand

How Governance is Hired(and fired)

For the first four years – until 5/27/2021 – the Storecoin organization has executive power over the blockchain. After this launch date, Governance will vote on all protocol-level, key people, and monetary policy decisions.

Click to expand

The Governance enables any issue to reach finality with consensus

How Every Storecoin Token Owner Can Create Change

(Democracy)
Click to expand

The Constitution 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

Click to expand

How a Censorship Resistant Storecoin Governance Works

The decentralized way with a dApp hosted by Govnodes worldwide

Click to expand

How Storecoin incentivizes adoption

How trust in STORE grows STORE into new environments

(into new design spaces)

Click to expand

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

Click to expand

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.

A PoW Blockchain Mining Operation & Test Network

SQL for Blockchains

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
Q2 2018

4THIRD TOKEN EVENT
(4% - 6% OF TREASURY)

  • Economics and Security Papers released
  • Storecoin v1 Test Network released
  • Open Source Development begins
  • Storecoin Wallets grow to +5,000
2019
Q1
2019-2020

5FOURTH TOKEN EVENT
(4% - 6% 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 Alliance launches initial apps on top of Wallet SDK
  • Storecoin Wallets grow to +22,000

Help grow the Storecoin Community, Earn a (Pomelo) Tee

Start at http://storeco.in/tee

Build your app on top of Storecoin

http://storeco.in/developer

Contribute Code to Storecoin

http://storeco.in/code

Subcribe to Engineering Notes

http://storeco.in/devnotes

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 required including country-by-country checks 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.