About Encoins:

 

Encoins

 

ENCOINS represents a fresh privacy protocol integrated into the Cardano network. Its operation revolves around users sending ADA into the protocol to create distinct NFTs known as ENCOINS. Each ENCOIN holds an encrypted redeeming value exclusive to the user, with the total redeeming value aligning with the ADA provided. As the name suggests, this information is encrypted, meaning its value is only known to the "owner" of a particular coin. The private information used to generate an encrypted coin is referred to as its minting key. Each minting key consists of the redeeming ADA value as mentioned above. ENCOINS function like any other native asset on Cardano, making them tradable, giftable, and compatible with other DeFi projects that support them. Transferring ENCOINS to certain DeFi protocols can be as straightforward as providing the minting keys for those coins. 

When desired, users can burn their ENCOINS to reclaim their redeeming value. However, only the user possessing the minting key can initiate this redemption process for a specific ENCOIN. The protocol serves as a foundational privacy component, designed to facilitate easy integration into other applications. Several privacy dApps could potentially utilize ENCOINS as their underlying layer.

ENCOINS is under development by the team that previously worked on CardMix, and it continues the ISPO (Initial Stake Pool Offering) started with CardMix. The new token with the ticker symbol $ENCS will replace $MIX while retaining the same functionalities.

 

Utility:

 

Utility ENCS token is a hybrid governance/utility token. The governance aspect of it was discussed above. Here we present the utility use-cases of ENCS in the ENCOINS ecosystem. The key idea is that a significant ENCS holding proves ”an interest” in the project. This can be used to create lists or rank reliable participants in our protocols. In particular, ENCOINS Ledger will utilize relayers for re-minting transactions like the one showcased in the previous section. The list of relayers will be formed based on their ENCS stake. For transactions on ENCOINS Ledger, a user will connect to one of the relayers from the list. For this list, the initial stake amount we propose is 100 000 ENCS. ENCOINS DAO can later adjust this parameter. It should be noted that, as open-source software, the Relayer App can be run by anyone (with some technical knowledge). Connecting to a custom relayer (even not from the list) will be technically possible.. However, this is not generally advised, as choosing a relayer at random provides better privacy guarantees.

 

ENCOINS as a Payment Option:

 

ENCOINS as a payment option Many companies and projects that utilize the Cardano blockchain in some capacity accept payments in ADA. One of the most obvious use-cases for ENCOINS Ledger is to be used as an alternative payment method whenever a simple ADA transfer is an option. In this scenario, a customer would just need to enter a minting key for one of their coins to make the payment (assuming they already minted a coin with the appropriate value). The seller could then use our API toolkit to finalize such payments.

 

Encoins DAO:

 

ENCOINS DAO ENCOINS ecosystem is being built in a decentralized way from the start. The project treasury will be replenished with the profits captured by the Encrypted Coins Protocol. The treasury funds may be directed towards different initiatives that help boost the project’s scope, scale, and adoption. These initiatives may include (but are not limited to):

 

• Supporting the development and maintenance of the ecosystem tools;

• Subsidizing anonymity mining on ENCOINS Ledger;

• Incentivizing ENCS token holders;

• Executing promotions campaigns. ENCOINS DAO will make decisions on treasury fund distribution.

 

This DAO will use ENCS as a governance token. The work on ENCOINS DAO Portal will commence once all ENCS tokens are distributed.

 

Tokenomics:

 

Initial token distribution The ENCS token has a fixed supply of 15 000 000 tokens, minted after ENCOINS Core launch. The initial distribution of the token is summarized in the following pie chart below (Figure 7). Below we give the description of each category. • 10 000 000 ENCS are allocated for distribution to the ISPO participants. • 3 000 000 ENCS will make the initial protocol’s treasury. • 2 000 000 ENCS are reserved for the original development team.

 

 

Roadmap:

 

1 - ENCOINS Announced

 

ENCOINS protocol was announced in August 2022. The team released White Paper v0.1. The project received community funding through the ISPO and Project Catalyst.

 

2 - Token Generation Event

 

The decentralized token generation and distribution ceremony was held on March 13-22. The ceremony followed the algorithm presented here.

 

3 - Public Test

 

ENCOINS Public Test began in March 2023. Since then, users have been testing the DApp on Cardano testnets. In the second phase, we expect relayers to join in.

 

4 - Mainnet Launch

 

After the Public Test and audit, everything will be ready for the mainnet launch. Users can now mint, trade, and transfer ENCOINS using their wallet or ENCOINS Ledger.

 

5 - Ecosystem Integrations

 

We plan to integrate ENCOINS with selected Cardano Ecosystem projects, including wallets, DeFi, and NFT dApps. All potential partners are welcome!

 

6 - Native Assets Support

 

Currently, ENCOINS protocol only supports wrapping of ADA. This support will eventually be extended to all native assets on Cardano, including Cardano NFTs.

 

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Discord: http://discord.gg/Q3gPP87Tcw

Medium: http://encoins-crypto.medium.com

GitHub: http://github.com/encryptedcoins