Review — Decenturion (White paper)
Recently we found a project named Decenturion, it claimed to be the first decentralized state built on blockchain.
“DECENTURION is the first decentralized autonomous state where all the resources, such as money, power and glory belong to the residents.”
White paper
You can find their White papers here:
https://decenturion.com/static/images/documents/dc.en.manifesto.pdf (English)
https://decenturion.com/static/images/documents/dc.ru.manifesto.pdf (Russian)
https://decenturion.com/static/images/documents/dc.zh.manifesto.pdf (Chinese)
Preamble (Page 3/28)
General introduction about blockchain.
Decenturion — The First Blockchain State (Page 4/28)
In Decenturion there is no central person or entity controlling the whole system and everyone is equal. The citizens in Decenturion 1) do not need to pay taxes (Tax is tax, fee is fee) 2) get tokens for free from startups that join Decenturion.
“The principle of decentralization in Decenturion assumes that there is no president, chairman or other governing body or person — in this system everyone plays an equal role. Like the classic state, Decenturion exists thanks to the activities of its citizens. But only in Decenturion the citizens are valued so much that they do not pay taxes to the state. Decenturion transfers its assets to citizens free of charge in the form of tokens that come from startups that join Decenturion.”
The Basis of The Decenturion State (Page 5/28)
It says why citizens are the only beneficiaries of Decenturion, but it does not give much information here.
“Decenturion is an environment for citizen interaction built on Blockchain and their activities, whether performed individually or collectively, ensure its life. This is why citizens are the only beneficiaries of Decenturion.”
Economic Model (Page 6/28)
There are two types of participation in Decenturion 1) Citizen, a physical resident 2) Startup, a legal resident.
“Startups join Decenturion to distribute their tokens among citizens of the state, and so achieve business indicators many times greater than those in traditional ICO’s. By transferring their tokens to Decenturion, a startup receives not only users but resellers and evangelists interested in implementing the startup’s tokens to ensure their own prosperity.”
Basically
- Citizens in Decenturion get free tokens from startups.
- Startups give away their tokens to the citizens in Decenturion and hope the citizens will use their tokens (platform tokens) or even trade their tokens, and as a result, to promote their projects.
Implementation of Startup Tokens (Page 7/28)
The citizens will get free tokens from startups in proportion to the amount of Decenturion tokens they own. The more the Decenturion tokens you have, the more the free tokens you will get from startups. It also implies that if a single person holds a majority of Decenturion tokens, he can affect the system that Decenturion wants to create, for example, the purposes that startups want in Economic Model (Page 6/28) and the equality idea in Decenturion — The First Blockchain State (Page 4/28).
“When a startup enters Decenturion’s internal market, its tokens are distributed among all the citizens free of charge in proportion to the amount of Decenturion tokens they own.”
The Estimated Revenue from Token Implementation (Page 8/28)
It uses some big numbers in calculating the estimated revenue, but it does not explain the calculations. The numbers are very fancy.
“2018: 300 startups x $50,000,000 / 600,000 DCNT = $25,000 per DCNT Token
2019: 3000 startups x $50,000,000 / 6,000,000 DCNT = $25,000 per DCNT Token
$25,000 per DCNT Token is not just GDP, but the amount of passive income NOT including the growth in the token price of a project with a million users. Even in our most conservative forecasts, we plan to bring this figure close to $1,000,000 per year in the shortest period possible.”
Note: “$25,000 per DCNT Token is not just GDP” Gross Domestic Product (GDP)?!
The Estimated Income from Active Participation as a Civil Servant (Page 9/28)
On this page, it has a new idea about a citizen — “Position”. So far, it does not explain anything about “position”.
“If a citizen assumes a position that provides a 5x multiplier or becomes an accredited organization with a 10x multiplier, the tokens on his or her account begin to work 5 or 10 times more efficiently.”
The number of free tokens a citizen can get from startups is not just proportionally calculated by the number of Decenturion token (DCNT) he has according to Implementation of Startup Tokens (Page 7/28) but also the “position” he belongs. It’s hard to get an idea about equality in Decenturion — The First Blockchain State (Page 4/28).
Proposed Income from Participation as an active Citizen (Page 10/28)
It mentions “Ministry of Commerce”, “Ministry of Education” and how they predict their Decenturion token value. But it does not provide any information about the “Ministry of Commerce” and the “Ministry of Education” here. (On page 21, it introduces ten different ministries)
“This format implies the distribution of startup tokens among visitors. Each startup transfers a minimum of $ 500,000 in tokens to citizens who attend the event. Each Road Show will involve at least ten startups”
Only the citizens who attend road shows organized by Decenturion can receive startup tokens.
Obtaining Citizenship (Page 11/28)
It generally describes the requirements of being a citizen of Decenturion, and it says, “The system automatically will create a personal user account and will activate it with a welcome DCNT token.”. So, each citizen will get a DCNT token when they get a Decenturion passport.
Degrees of Participation (Page 12/28)
Citizens become users, resellers or evangelists of startup tokens. They will be able to choose other degrees of participation. In this page, it mentions only “Adviser” role but not all the roles and their requirements in Decenturion.
In the last sentence, it says “In exchange, the citizen receives tokens directly proportional to the amount allocated to the group of advisers.”
It suggests one more way to allocate startup tokens, the “Adviser pool”. So basically, what we understand so far, the number of free tokens a citizen will potentially receive is calculated by
- The number of DCNT tokens a citizen owns — (Page 7)
- The position of a citizen — (Page 9)
- The amount of startup tokens allocated to different groups (different pools) — (Page 12)
Startups — Legal Residents (Page 13/28)
It states the importance of startups in Decenturion.
Opportunities for Startups (Page 14/28)
It compares traditional ICO and Decenturion, it may probably exaggerate the benefits of joining Decenturion, as it says, “immediately go into profit”, “no sense to conduct an ICO, raise funds, and attract users”.
“Decenturion goes directly to the final step. That is, after minimal documentation preparation, a startup can immediately go into profit and focus only on business development processes. It makes no sense to conduct an ICO, raise funds, and attract users. Instead, you can immediately find users and develop a project and the economy at an immeasurably greater speed.”
Mechanics of Token Distribution (Page 15–16/28)
We expect to see more information about how Decenturion distributes startup tokens to its citizens, however, it only describes the startups and its citizens.
“The mechanics of token distribution in Decenturion ensure the domination of the most successful, wealthy, eminent, competent and educated people among its citizens.”
At this point, it seems that Decenturion has some criteria for its citizens.
“After this, all citizens of Decenturion will receive startup tokens proportional to the amount of Decenturion tokens they own and will be able to transfer them to the landing page for selling.”
It does not explain the other two token calculating methods they stated before:
- The position of a citizen — (Page 9)
- The amount of startup tokens allocated to different groups (different pools) — (Page 12)
Emission and Tokens (Page 17/28)
The total emission of DCNT tokens is 30,000,000 units.
State Reserve (Page 18/28)
There are three quotas for key tasks 1) For attracting new citizens 2) the development 3) conducing exchange operations and acquiring assets
Distribution Model (Page 19/28)
The number of DCNT tokens a citizen can get is proportionately calculated, the number of ETH a citizen owns (exceeding 10 ETH = 10 ETH) in his wallet will affect the number of DCNT he will receive.
Number of DCNT tokens = number of ETH you own (maximum to 10 in calculation) / Total number of ETH all participants own
And the number of free tokens a citizen can get from startups is calculated based on the number of DCNT tokens a citizen owns described on page 7 — Implementation of Startup Tokens. So, the rich get richer.
Monetary Contribution to the Development of the Decenturion State (Page 20/28)
After August 1, 2018, they will not distribute free Decenturion tokens (DCNT tokens). For new citizens that joined Decenturion after August 1 to get free startup tokens, they need to buy DCNT tokens through exchanges and attend road shows organized by Decenturion.
Labor Contribution to the Development of the Decenturion State (Page 21/28)
There are ten different ministries have been established:
•Ministry of Foreign Affairs
• Ministry of Commerce
• Ministry of Industry (work with startups)
• Ministry of Information
• Ministry of Education
• Ministry of Administrative Affairs (software development, technical support, printing of documents)
• Ministry of Labor
• Ministry of Finance (state reserve)
• Ministry of Justice
• General Assembly (lawmaking).
Each ministry has a quota of 100,000 DCNT per month for accredited organizations, advisers, experts. They will get tokens as remuneration if and only if they have reached the goals set.
However, it does not mention
- How they established the ministries in the first “wave”
- The functions of each ministry and its accredited organizations, advisers, experts
- The requirements for such accredited organizations, advisers, experts
Quota Distribution Among Ministries of All Five Waves (Page 22/28)
They planned to have 5 waves of ministry and they explain the calculations of quotas for each wave. However, it is unclear and does not mention what “wave” is and the form of “wave” and why there is “wave”
The Principle of Management and Hierarchy (Page 23/28)
Ministries are established as follows:
“• All ministries are initiated by proposing the corresponding draft laws which are approved by the voting of citizens.
• The citizens approve the structure of the ministries, the motivational program, and the KPI.
• Ministers are nominated from citizens and appointed by citizens through voting.
• Ministers involve organizations and conduct their accreditation.
• Ministers take control over KPI implementation and the allocation of motivational tokens for organization development.
• Citizens monitor the work of ministries and ministers.”
However, it does not mention the rights of each ministry and its hierarchy.
Contribution of Resources to the Development of Decenturion (Page 24/28)
No more than 200,000 tokens will be distributed monthly for the development purposes.
Basic Rights (Page 25/28)
Every Decenturion citizen has the basic right to receive free startup tokens, right to distribute startup tokens and the right to distribute Decenturion tokens and attract new citizens.
However, it does not mention other basic rights, for example, voting right, the right to be a minister , the right to monitor ministries and ministers. (mentioned on page 23)
Prospects (Page 26/28)
There are three different stages and plans to develop Decenturion.
White paper — Conclusion
This white paper is too short, vague and incomprehensive. The idea of a decentralized state is immense, ambitious and hard to accomplish. Decenturion is like a big airdrop group. We doubt the effectiveness of promoting startups in Decenturion, and its token valuation. Also, whether the citizens in Decenturion are looking for free tokens from startups or helping startups promote their projects is a question.
We would like to point out what we have found in this white paper:
- Vague idea about equality (Page 4/28)
- No grounds in calculating estimated revenue, number are fancy (Page 8)
- No information about possible position of a citizen (Page 9)
- Inconsistent in calculating free startup tokens (Page 9, 12, 15–16)
- Over exaggerated the benefits of joining Decenturion (Page 14)
- No information about the functions of each ministry (Page 21)
- No information about the rights of each ministry and its hierarchy (Page 23)
- Incomprehensive basic rights of a citizen (Page 25)
- No technical advantages
- No information about the team
This is only our opinion. Please do your own research before making any decisions.