https://komodoplatform.com/_next/static/chunks/pages/en/docs/histo…/whitepaper/chapter8-0cd6953ccf50f3e2.js

1(self.webpackChunk_N_E=self.webpackChunk_N_E||[]).push([[5921],{48029:function(e,t,n){(window.__NEXT_P=window.__NEXT_P||[]).push(["/en/docs/historical/whitepaper/chapter8",function(){return n(71306)}])},71306:function(e,t,n){"use strict";n.r(t),n.d(t,{__N_SSG:function(){return i}});var o=n(85893),r=n(11151);function a(e){const t=Object.assign({h1:"h1",p:"p",h2:"h2",h3:"h3",table:"table",thead:"thead",tr:"tr",th:"th",tbody:"tbody",td:"td"},(0,r.ah)(),e.components);return(0,o.jsxs)(o.Fragment,{children:[(0,o.jsx)(t.h1,{id:"final-notes-regarding-the-komodo-project",children:"Final Notes Regarding the Komodo Project"}),"\n",(0,o.jsx)(t.p,{children:"There are few final miscellaneous topics to discuss. These include our strategy for\nfiat-pegged cryptocurrencies (PAX), our outlook for smart-contract technology, and\nthe nature of the main chain in the Komodo ecosystem, KMD."}),"\n",(0,o.jsx)(t.h2,{id:"fiat-pegged-cryptocurrencies",children:"Fiat-Pegged Cryptocurrencies"}),"\n",(0,o.jsx)(t.p,{children:"Our strategy towards fiat-pegged cryptocurrencies (PAX) has recently changed. Previously, we featured on our website a white paper that outlined a PAX strategy. That\nformer strategy was created before it was clear whether governments of the world\nwould embrace blockchain technology."}),"\n",(0,o.jsx)(t.p,{children:"Today, it seems that governments are updating their philosophies and preparing\nfor blockchain adoption. Governments appear to be considering a need to create\nblockchain-based cryptocurrencies that can be exchanged for their existing fiat currencies."}),"\n",(0,o.jsx)(t.p,{children:"In many cases, we may be able to directly integrate these government-sponsored\nfiat-to-blockchain cryptocurrencies natively in BarterDEX. Blockchain projects that\nproperly utilize the core security features of the Bitcoin protocol are capable of properly performing atomic swaps."}),"\n",(0,o.jsx)(t.p,{children:"As it is possible that government-sponsored cryptocurrencies may natively inte-\ngrate with BarterDEX, it appears that creating our own PAX technology may be un-\nnecessary. We are putting all PAX endeavors on hold at this time."}),"\n",(0,o.jsx)(t.h2,{id:"smart-contracts-on-the-komodo-platform",children:"Smart Contracts on the Komodo Platform"}),"\n",(0,o.jsx)(t.p,{children:"There are several smart-contract options available in the Komodo ecosystem. The\noptions based on the Bitcoin protocol have been included with our technology, and indeed even with Bitcoin, since the beginning. We also recently released Crypto Conditions, Merkle Root of Merkle Root (MoM) notarizations, and Smart chain Customizations. These provide enhanced smart-contract and smart-chain functionality. All are\nstill in beta stages."}),"\n",(0,o.jsx)(t.h3,{id:"bitcoin-protocol-based-smart-contracts",children:"Bitcoin-protocol Based Smart Contracts"}),"\n",(0,o.jsx)(t.p,{children:"A rarely known fact in the blockchain industry is that Satoshi Nakamoto included\nsecure and advanced smart-contract technology in the original release of the Bitcoin\nprotocol. Smart chains in the Komodo ecosystem can use the smart-contract capabilities native to the Bitcoin protocol, as Komodo is ultimately a fork of Bitcoin."}

1),"\n",(0,o.jsx)(t.p,{children:"Various vendors and developers in the open-source community provide resources\nto make this easier, though we make no specific endorsements of any product. One\nexample of smart-contract technology native to the Bitcoin protocol is a Conditional\nTime-Locked Deposit, which our BarterDEX technology utilizes in the trading process."}),"\n",(0,o.jsx)(t.h3,{id:"crypto-conditions-merkle-root-of-merkle-root-mo-m-and-customized-smart-chains",children:"Crypto Conditions, Merkle Root of Merkle Root (MoM), and Customized Smart Chains"}),"\n",(0,o.jsx)(t.p,{children:"We are also in the process of releasing our own smart-contract technology that\ngreatly enhances the Komodo developer\u2019s experience. Our smart-contract technology\nis geared to be language-agnostic, meaning that any language (JavaScript, Ruby, C#,\nPython, etc.) can execute smart contracts in theKomodo ecosystem. Furthermore, the\nMoM technology allows for multi-chain and cross-chain smart- contract interoperability. These many features empower both smart chains as well as the main chain."}),"\n",(0,o.jsx)(t.p,{children:"As each technology is still in the beta stages, we refrain from including detailed\ndocumentation in our white paper. Please visit our communities to find documentation resources and to converse with our developers, if you are interested in building\non Komodo. We intend to create thorough educational experiences for these products\nin due time."}),"\n",(0,o.jsx)(t.p,{children:"Details Regarding the Primary Chain of the Komodo Ecosystem: Kmd"}),"\n",(0,o.jsxs)(t.table,{children:[(0,o.jsx)(t.thead,{children:(0,o.jsxs)(t.tr,{children:[(0,o.jsx)(t.th,{children:"Circulating Coin Supply:"}),(0,o.jsx)(t.th,{children:"~100000000"})]})}),(0,o.jsx)(t.tbody,{children:(0,o.jsxs)(t.tr,{children:[(0,o.jsx)(t.td,{children:"Total Coin Supply (yr. 2030):"}),(0,o.jsx)(t.td,{children:"~200000000"})]})})]}),"\n",(0,o.jsx)(t.p,{children:"The foundational coin of the Komodo ecosystem is named after the ecosystem itself, Komodo (KMD)."}),"\n",(0,o.jsx)(t.p,{children:"It is the most versatile coin we are building. Whenever we create new technologies\nfor our ecosystem, we seek to establish a relationship between the functionality of the technology and the usefulness of KMD. For instance, KMD is the native cryptocurrency for Jumblr. All other cryptocurrencies in the Komodo ecosystem that seek\nto utilize Jumblr\u2019s privacy must first be traded on BarterDEX for KMD. After the\nprivacy process is complete, the users then exchange KMD on BarterDEX for their\ndesired cryptocurrency. KMD is also the fuel for our smart-contract technology, and\nMoM smart contracts store their data in the KMD main chain. These are but a few\nexamples of Komodo\u2019s usefulness. Readers may discover many more by discussing\nKMD with members of our community."}),"\n",(0,o.jsx)(t.h3,{id:"rewards",children:"Rewards"}),"\n",(0,o.jsx)(t.p,{children:"Furthermore, those who hold KMD may earn rewards of up to 5.1% annually. Any\nwallet address that holds at least 10 KMD is eligible. KMD holders must simply move\ntheir KMD once a month\u2014even if the funds are sent back to the same address from\nwhich they originated\u2014in order to earn their reward. This reward is built into the\ncore code of Komodo."}),"\n",(0,o.jsx)(t.p,{children:"The reward comes from an opportunity provided by our unique security system,\ndPoW. The nature of the reward is rooted in the financial incentive that is typically\ngiven to miners on a normal PoW chain. On a normal PoW, when a miner mines\na new block, the blockchain mints new coins and delivers them to the miner\u2019s indicated wallet. For instance, on the Bitcoin blockchain, the reward for mining a new\nblock is currently ~12.5 BTC. In dPoW, we do not need to allocate such a high incentive to miners, as we already maintain access to the hash rate of our chosen PoW\nnetwork, Bitcoin. Therefore, when we created the KMD main chain, we recoded this\ncoin-minting reward to distribute 5.1% annual rewards to all holders of at least 10\nKMD."}),"\n",(0,o.jsx)(t.p,{children:"To earn rewards in the full amount of 5.1%, users must move their funds on the\nblockchain at least once per month. The reward is calculated as a part of the UTXO\ntransfer process of this paper for details on UTXOs). The KMD code only\ncalculates rewards for UTXOs up to one month, and then stops. By simply sending\nthe full balance of a wallet to the same receiving address, a user can generate a\nnew UTXO. In this manner, the user can claim their current rewards, and continue\nreceiving them for at least one month."}),"\n",(0,o.jsx)(t.p,{children:"The KMD 5.1% reward will continue for a period of approximately twelve to fourteen years. When Komodo\u2019s overall coin supply reaches ~200M, this reward will also\ndiscontinue. Specifically, the reward will cease when the KMD chain reaches a block\nheight of 7777777."}),"\n",(0,o.jsx)(t.p,{children:"It is important to note that no one is forced into using KMD in our ecosystem. We\nare often asked why we chose this route, as the free nature of the Komodo ecosystem\ncan be in direct contrast to the philosophies of many other ecosystems and exchanges.\nOther ecosystems often require users use the developer\u2019s coin."}),"\n",(0,o.jsx)(t.p,{children:"The reason why we follow a more open practice is that we strive to adhere to the\nguiding principles of decentralization and open-source technology. We want to create\na blockchain platform where people are free to use whatever is most useful for them\nin their entrepreneurial endeavors. Keeping KMD as an optional element empowers\nthe members of the Komodo ecosystem with freedom."}),"\n",(0,o.jsx)(t.h2,{id:"conclusion",children:"Conclusion"}),"\n",(0,o.jsx)(t.p,{children:"This concludes a thorough explanation of the foundational technologies of the Komodo ecosystem. We are working diligently to improve the user experience. While\nsome may say that the cryptocurrency industry is but a bubble, at Komodo we believe we have not yet begun the fight. We hope that the innovations we provide will be a meaningful contribution to the remarkable advent of blockchain, decentralization,\nand open-source technologies."})]})}var i=!0;t.default=function(){let e=arguments.length>0&&void 0!==arguments[0]?arguments[0]:{};const{wrapper:t}=Object.assign({},(0,r.ah)(),e.components);return t?(0,o.jsx)(t,Object.assign({},e,{children:(0,o.jsx)(a,e)})):a(e)}}},function(e){e.O(0,[9774,2888,179],(function(){return t=48029,e(e.s=t);var t}));var t=e.O();_N_E=t}]);
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