Minter White Paper
Version 0.4, September 24, 2018
The Minter Network is developed by a team of highly-skilled blockchain professionals with three main goals:
- Everyday use. We provide users with the easy-to-own currency, tailored for daily use;
- Everyone is the bank. We give the long tail of value providers the ability to issue and manage their own currencies;
- Everything is liquid. Every coin should have instant and absolute liquidity.
To address the first goal, a new cryptocurrency — BIP — is launched. BIP stands for Blockchain Instant Payment, which reflects our vision of fulfilling the real-world need for a fast, efficient, and dependable medium of exchange.
The second goal is approached by coin minting. Provider of value — be it a local business, a content creator, or a community leader — can become a coiner, create their own coins backed by BIP, and integrate those coins into their products and services via off-chain Minter Apps, or MApps, in a matter of hours.
Finally, every coin has BIP value at any given time and can be exchanged for other coins issued in the Minter network and major cryptocurrencies. Even better, our legal team is working on a framework to allow for the exchange of BIPs and other coins for fiat currencies such as USD!
The Minter blockchain runs on the Tendermint engine with the DPoS (Delegated Proof-of-Stake) consensus algorithm. The programming language used for the implementation of the client/node is Golang.
The network itself acts as the Cosmos Zone, meaning that users can exchange BIP and other issued coins for Bitcoin and Ether. They can also use smart contracts run by separate zones via Cosmos Hub, the feature to be available in 2019.
- Target block time: 5 seconds
- Size: max. 10 000 transactions ~180 bytes each + header + validators’ signatures
- Reward per block starts at 333 BIP and decreases linearly to 115 BIP
Block Structure (Network Specification)
- Signatures of >⅔ of the validators
The algorithm of generating addresses and the signature scheme are imported from Ethereum (Cryptographic Signature Scheme: Elliptic Curve Digital Signature Algorithm).
Unlike many blockchains in the market, Minter does not plan to bring everything on-chain. We are following the common trends, enriching them with our unique features: open, permissionless network, fast transactions, coin creation, etc. To identify applications and services developed for Minter, we call them MApps (Minter Apps). A typical MApp is a microservice integrated into a site or a mobile app, letting users sign the transactions, view balances, mint and remint coins, and use other features enabled by the blockchain under the hood. Right from the start, the Minter Team will release open-source SDKs for iOS, Android, JS, and even a Telegram bot kit.
Minter can be considered one of the friendliest environments for developers: our API and SDK are carefully audited, full of variations and examples, and ready to be used in minutes. Minter architecture supports off-chain usernames, leading to a more simple way of transferring value and understanding statements.
You can assume any of the three value distribution roles in the Minter network — a Validator who verifies transactions and receives block rewards, a Coiner who creates custom coins and uses the Minter network as a backend for achieving their business goals, or a Delegator who enjoys the ease and speed of Minter transactions along with the innate liquidity of the coins and entrusts the Validators with their holdings through the process known as bonding.
And, of course, there is a basic role of the end user with all the benefits provided by a simple and fast process of transferring and exchanging value.
At the launch of the network, a maximum of 16 Validators will be set, of which 4 Validator nodes will be run by the Team and included in the Genesis Block. 4 new validating nodes will be added each month, resulting in the number of Validators increasing to 256 in approximately five years. This limit is set to tackle the growth of complexity and keep Minter running fast.
Users can delegate their tokens (bond them) to validators. The process of unbonding from the validator will be finalized within 30 days after the request has been sent.
Validators are rewarded for their services in two forms:
- Block rewards
- Transaction fees
Each transaction on the Minter Network comes with commission fees. Fees are distributed to validators in proportion to their stake.
To start working as a Validator, you can use the official node client with no additional software required.
Along with network features, such as instant transactions and a simple interface for a mass user, the Minter Network does also enable anyone to issue their own crypto assets — the coins. Characteristics of each coin will be determined by the issuing coiner themselves, depending on the functional features of products and projects tied to the coins.
Users of the Minter network get access to instant transactions, the innate liquidity of coins, and excellent usability. Access to MApps provided by the team and our partners will further enhance user experience.
Furthermore, each BIP user can be a Delegator. Bonding one’s BIP balance to a Validator results in the merging of balances for validation purposes and generates more rewards with the greater probability of validating the next block.
The native token of the Minter Network is called BIP, which stands for Blockchain Instant Payment.
For end users, BIP has a lot of competitive advantages over common coins: transfers are done in seconds with the volume of tens of thousands a minute; the average commission is way below 1 U.S. cent and can even be free of charge; usernames can be used as addresses.
BIP in its current state of development is already on par with major payment solutions.
Every payment solution evolves over time, but some of the features are just the part of their business model, e.g., PayPal will always have a high commission as its main goal is to protect buyers across the globe; banks will never be able to speed up transfers as they are all just too different and need intermediaries to facilitate payments.
Bitcoin and Ethereum are the most trusted cryptocurrency networks that are working on getting the cost of transactions down and speeding up some types of payment by introducing Lightning and Casper, but the rollout and consequent adoption will take years. Our main advantage right from the start is the focus on the ease, speed, and cost of payments. That is our DNA and business model.
BIP also acts as the reserve currency for new coins, while giving them all the benefits of itself. This provides for absolute and instant liquidity — anything can be exchanged in seconds at a fair price calculated by formulas proposed by leading economists including Nobel prize-winner Friedrich von Hayek and John Maynard Keynes, author of World Reserve Currency theory in 1945.
The maximum number of tokens is 10 billion BIPs, with distribution planned to be concluded at 43 702 611 blocks in approximately 7 years.
The Genesis block will include the pre-mine of 200 000 000 BIPs for the first validators, coiners, and users, of which 50% will be airdropped, and 50% will be distributed to early partners.
The rest of the tokens will be received by validators as block rewards.
20% of both block rewards and transaction fees will be withheld as taxes and equally distributed between the Team and the Developers’ DAO.
Balance of Forces in the Network
Once the first year is concluded, almost 22% of all network tokens will have been distributed, of them:
- 1% will go to users (airdrop);
- 1% to partners (early access);
- 2% to the team;
- 2% to the Developers’ DAO
- Almost 16% to validators as block rewards, except for taxes.
The Minter Network allows for the creation of custom coins backed by BIP reserve and instantly convertible back to BIP or other coins issued in the network.
The coins have actual value right from the start, driven by the BIP reserve and economic formulas. Furthermore, the reserve creates absolute and instant liquidity for all market participants, because any coin can be exchanged for any other one in seconds without the need for a counterparty. Since Minter is part of the Cosmos Network, coins will also become exchangeable for Bitcoin and Ether, or any other cryptocurrency via atomic swaps.
All of this makes Minter a great platform for the creators and founders, as there has never been such an accessible environment for creating and managing one’s own backed coins. Fan coins, game credits, loyalty points, community money, votes, rewards, you name it — the list of possible applications is endless.
It shall be noted that coins can also be used as a stake for validation, further enhancing their liquidity and ease of use.
You can read the description of the coins and minting mechanics at https://about.minter.network/Minter_PCO.pdf
To date, the Minter team consists of 20 people, among whom are blockchain developers and experienced front-end/back-end professionals. From the very beginning, we strive to build stylish, sophisticated applications for mobile users, so we have recruited accomplished designers and iOS/Android experts with the enormous expertise to join us.
Visionary, advocate for user-friendly products. Venture investor, Bitcoin evangelist since 2013, founder of many projects at the earliest stage of markets — online advertising, mobile applications, Big Data, and currently blockchain.
In charge of the Minter core. Blockchain wunderkind, total dev experience is seven years, with three of them in blockchain. Age: 21.
Systematizes Minter integration with off-chain world. Developer with eight years of experience in mobile, CRM, and e-commerce application projects. Realized decentralization was the next big thing before it was too late.
Develops Explorer and its API. Dev experience amounts to 12 years, among which two in blockchain products.
Author of Telegram bot wallets, PHP SDK. Young and promising, six years in backend, two in blockchain. Deems Telegram superior to other messengers.
All things web — Console, wallets, pages. Author of JS SDK. Five years in web development, expertise in creating SPAs, responsive layouts, and animation. Loves working overtime.
Developed and now improves Android wallet, authored Android SDK. Four years of experience in mobile dev for Android, seven in backend dev for web projects. Developer of desktop and system software for *nix systems. Vaper.
Author of iOS wallet and iOS SDK. Total experience in app development is 10 years, with last five years focused on iOS applications. Launched his own startups, raised funds. User security guard.
We know nothing about him, yet he helped us a lot.
The current team is funded by serial entrepreneur and venture investor Evgeny Gordeev. In this project, he holds the position of product manager in the first place. The team has a flat libertarian structure with no directors, presidents, and other bureaucratic impediments. Check out our LinkedIn company page for the complete list of team members — https://www.linkedin.com/company/minternetwork/.
Future research and development will be financed through a 10% taxation on block rewards and commission fees. The good point of such an idea is that interests of users, validators, and the team align: the more efforts are put into development and promotion of the network, the higher the price of BIP and the volume of transactions. On the other hand, top validators can switch the current team for a new one, provided they have 2/3 of the votes, at any point!
Minter will be launched and promoted by the DeCenter company (Cyprus-based), which is the #1 crypto community in Russia with over 250 000 members. Evgeny Gordeev is its founder and primary owner.
In the off-chain world, the Minter Network is represented by a Nevis-incorporated Minter Network LLC. St. Kitts and Nevis islands are known for strict laws protecting corporate ownership and empowering individuals with freedom of travel. Libertarians such as Pavel Durov and his team members are known as St. Kitts and Nevis citizens.
Below are the confirmed dates of major milestones for the year 2018:
- Testnet launch: March 1
- Console (the issuance of coins included): April 15
- Checks: May 1
- SDK for the integration of transfers: September 1
- Native BIP wallets: October 1
- End of Early Access Campaign: October 31
- Mainnet launch: after the release of the Tendermint engine
And our focus for 2019 is:
- Mainnet stability
- Research on DAO and community discussions
- Translation of the BIP Wallet into 30 languages
Our main goals for the near future are A) Integration with Telegram Open Network (TON), B) Setup of the Validators’ Decentralized Bank (MBank).
We announce the integration with TON as Minter’s primary target for the year 2019. The key difference that makes TON stand out is its team that has been changing almost every market it entered for years. The Durov brothers — Pavel and Nikolai — are not only the strongest developers of our time but also vocal advocates of freedom and independence. Only people like them can fully develop blockchain projects, thus expanding Satoshi Nakamoto’s idea of a new Internet with no censorship and manipulation and with equal access for everyone.
Below is a step-by-step approach we will take in 2019 to integrate Minter with TON:
Transfer of Any Minter-Issued Coin to TON
One will be able to transfer any coin from the Minter blockchain to that of TON. Minter network’s validators will initiate the transfer automatically. Once the transaction is accepted by TON’s validators, the coins will be available for use within the Telegram Open Network. The transfer of coins from TON to Minter will also be automatic (available only for those created in Minter).
The coin transfer feature will enable us to use the Telegram Open Network’s smart contracts. Everyone is doing their job to the best of their ability — we mint coins that can later be implemented in the TON’s smart contract environment, one of the most advanced ever.
Decentralized Username Registration
Once TON DNS launches, users will be able to use it for registering and managing usernames in the Minter network. Users will receive total control over their data in a trustless network.
TON Storage for User Data
Minter users will be able to store their data on the TON blockchain, benefitting from its security and immutability.
TON for Micropayments
With TON Payments, users will be able to send and receive micropayments in Minter-based coins with the help of the Lightning Network. It will be very useful for services that have to often transact in small amounts (for instance, an ad service charging for each view).
Exchange of Coins
We will become the world’s first-ever project to reach the exchangeability of its native digital coin (in our case, BIP) and TON’s base coin (GRAM). That is the reason why we have been actively working out the way to integrate with Telegram and also the reason behind our decision to conduct the KYC/AML procedure for all of our users. If BIP can be exchanged for GRAM (and the other way round), so can any other coin issued in the Minter network!
To make trades as stable as possible, we will introduce an additional option to buy BIPs provided by the validators through the Validators’ Decentralized Bank (MBank).
Anyone will be able to exchange Bitcoin or Ether for BIP by simply sending one of the world’s two largest cryptocurrencies to the MBank’s address, having their order filled in the cheap-to-expensive order.
We are also working on the framework to allow network participants to exchange BIPs and other coins of the Minter network for fiat currencies via MBank so that they could purchase goods and services in a familiar environment — using cards, cash, or electronic systems like Apple/Android Pay.
For more information, please visit https://www.minter.network.