Posted in Money on December 23rd, 2017
In this post, we examine the crypto-token Diamond (DMD). We will outline the project according to the developers and the team in charge. Some people may find value or purpose on this crypto-project based on how it develops and what problems it aims to solve. The validity of development and claims must be determined by the judgement of the reader. From here on out, I will refer to the crypto-token as DMD.
According to the project, the goal is to “become an ultra-scarce non-government controlled storage of wealth with software facilities that can increase that wealth over time.” As a digital currency, this is to allow people to send money instantly, securely, and near-zero cost.
DMD initial blocks and tokens were initiated with proof-of-work mining. The algorithm used is stated as Quark, with block times of 135 seconds, in their GitHub page. However, it is transitioning to full proof-of-stake mining with DMD 3.0. They offer two variations of proof-of-stake, either through wallet staking or through masternodes. DMD considers masternodes as proof-of-service, but it seems to be proof-of-stake with prerequisites. The prerequisites are to have 10,000 DMD coins and a static-IP address so that the wallet can be connected continuously.
The project states that they are transitioning to proof-of-stake 3.0 because some people were able to game the system by some worrisome behaviours where majority of shareholders were “disconnecting from the network for long periods of time, gaining enough coin age to stake and connecting again to claim their rewards.”
DMD is providing scarcity by limiting the maximum number of coins to 4.38 million DMD. To ensure this limit, the project is implementing “Treasure Digging” which allows burning of “old” DMD coins, i.e. Unspent Transaction Output (UTXO) aged over 10 years. Another feature that limits the maximum number of coins in circulations is that Diamond 3.0 transaction fees will be burned as a feature, according to the white paper.
In our podcast, I will comment and provide some views on this crypto-project that I think are different than the current interest in crypto-currencies. I will update this article with the podcast when it has been recorded. If you are interested in subscribing to our podcast, check it out here.
This article covers a token or element in the cryptosphere. FinTekNeeks are not financial advisors and this is not a recommendation to purchase or sell this crypto-token. Please seek professional investment advisors before taking any action on a crypto-token. By the time this article is published, changes may have already occurred. Most tokens in the cryptosphere are complete scams that are get-rich-quick-schemes for insiders. Often, we cannot know this beforehand and only later discover this. A person should only trade with money that they’re willing to lose because losses are guaranteed. If you choose to participate in purchasing a token in the cryptosphere, you should do so with the full expectation of a loss and you should also expect it to change in a manner that does not benefit you. Finally, by reading this post, you agree that you’ve read our disclosure.