Summary of PegNet AMA in VITE Group
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Summary of PegNet AMA in VITE Group
We held a PegNet AMA in Vite telegram group at 1 pm UTC+0 January 13, 2020. The AMA was hosted by Oleg , Vite community lead, and attended by Dave from PegNet. The whole AMA and Q&A can be viewed here.
The PegNet token (PEG) is an open, distributed, autonomous and minable stablecoin network. PegNet enables cryptocurrency users to hold value and make payments in the form of any asset they would like thanks to Pegged Asset Tokens. PegNet tokens are digital copies of the fiat currency, cryptocurrency or precious metal they mirror.
Supported by prominent early Ethereum contributor Jonathan Mohan and early blockchain leaders such as David Johnston, and Paul Snow. PegNet’s technology leapfrogs existing stablecoin implementations by being minable via proof of work, where miners are rewarded with PEG tokens in return for submitting and approving price data from external sources. Miners subscribe to various market API’s and submit the prices of 29 assets, including Gold, Silver, USD, Euros, Ether, Factoids & Bitcoin, with many more to come to PegNet. Users can choose their exposure to any of the Pegged assets by simply converting between assets at current market prices.
- Five-thousand PEG tokens mined per block, every 10 minutes
- Distributed mining reward go to the top 25 miners each block
- 29 stablecoins including: Gold, Silver, USD, Euros, Ether, Factoids & Bitcoin
Oleg: Hi Dave, welcome to the Vite community! My congratulations on the past holidays to you, I hope you had a good rest and celebrated the New Year with renewed vigor
How are you today?
Dave: Here is Zurich right now. Thanks. Great to be here : ) I’m doing great.
Oleg: Perfect:) We are very happy to have you here, on our joint AMA
The very first question for you. Can you introduce yourself?
A simple three characteristic is preferred
Dave: Sure. Here is some information about me. http://www.davidajohnston.me/ . I’ve been in the crypto ecosystem since 2012. I was an early supporter of Bitcoin. Then Ethereum. I helped found the Factom Protocol and I’m very excited about DeFi.
Many people know me from coining the term Dapps. https://github.com/DavidJohnstonCEO/DecentralizedApplications
Oleg: Very cool, Dave! You seem like a real enthusiast
Dave: Thanks. Its been a great 8 years to be in crypto : )
When I saw how powerful decentralized systems could be and how it could give everyone freedom it got me really excited.
Dave: So I run an investment firm Yeoman’s Capital and we only focus on crypto and blockchain.
Oleg: Your own fund ?
Dave: Its a family office, so its my personal investment firm. We only support open source projects that build on blockchain tech.
Oleg: If there are more such people, the blockchain has a great future
Now please tell us about how the rewards for the AMA will be distributed, I think many are interested in this
Dave: Sure. We want to spread knowledge about great DeFi projects like PegNet.
Oleg: Nice! So, let’s start Stage 2. Here we go the 1st question for you.
Questions from the Host
Oleg: How are the Stablecoins on PegNet different from other stablecoins?
Dave: First PegNet is fully distributed.There is no company or foundation. No central reserve. The users hold their own stablecoins. They can convert into pegged USD or pegged Euros for example. But it works based on the miners publishing prices for each asset every 10 minutes. So its based on decentralized oracles. Not on collateral or a central reserve. There is a good write up here: https://link.medium.com/46lB28Trd3
So it’s very different then Tether or other stablecoins that have a reserve.
Oleg: Full decentralization, that’s how I would call it Move on to the next questions…
How does the mining on PegNet work?
Dave: Every 10 minutes the miners compete to earn 5,000 PEG tokens. They do proof of work with CPU. But they also publish the price of Gold, USD, Euros. All thirty of the different prices on the PegNet. So they are graded both on the proof of work and can accurate the price data is. The miners are the source of the decentralized oracles that power the system.
You can see all the prices they publish here: https://pegnetmarketcap.com/
Oleg: Great opportunity for mining, take note
Dave: Yes. The slog that PegNet uses doesn’t allow for ASIC or GPU only CPU. So it’s been used by many people around the world.
You can see the mining stats here: https://www.factoshi.io/pegnet. Now over 100,000 CPUs mining PegNet. 200X growth of hashrate in only the first 100 days.
Oleg: steady increase in hashrate
Dave: Yes. I guess people like the idea of mine able stablecoins. The miners can convert their PEG into pUSD or which ever stablecoin they want.Even pBTC or pETH. PegNet has top cryptos and top fiats plus Gold and Silver.
Oleg: True, many now need stability. So, let’s continue…question number 3
How are pegged assets on PegNet created?
Dave: There was no pre mine. No token sale for PegNet. Only Proof of Work mining since it’s launch August 19th 2019. So all the assets on the network were mined. Or someone took FCT and burned it for a pAsset or bought PEG from a miner and converted it into pAssets. That way all the assets are 100% audit and provable.
This site shows all the conversions and burning of crypto into pAssets.
Over 1.2 Million FCT burned into PegNet assets. PegNet is built on Factom which also is built on Ethereum. So it’s a totally transparent way and honest way to make stable coins.No central control. The user can make any stablecoin they want on the PegNet by buying PEG and converting them into the pegged assets.
Oleg: Nice, everything looks extremely decentralized, as Satoshi bequeathed.
Let’s talk about community, question number 4.
How can users get involved with the PegNet community?
Dave: One way is to become a miner of PEG. I funded the first open source mining pool. People can check it out here: https://prosperpool.io/ Another way is to purchase PEG and convert them into some stabelcoins. Vite exchange is great that. They were one of the first to support PegNet and many pAssets are listed on Vite.
There is a basic wallet now for PegNet assets here: https://chrome.google.com/webstore/detail/kambani/oiceedellfbhhplkfkpkkocbdkifpili
It’s a chrome extension and works like Meta Mask. But for Factom not Ethereum
And here is the web wallet that works with the chrome extension https://factomatic.io/wallet/
So you can mine, you can make your own stablecoins, you can build payments and other applications with PegNet. So many wants to get involved.
A lot of the community is on Discord you can use this invite to join the community there https://discordapp.com/invite/Xz2ZN6p
Or on Telegram t.me/PegnetOfficial
Oleg: Very good, you have quite a lot opportunities for community . Supporters are very important! Final question.
How much does it cost to send and convert pegged assets on PegNet?
Dave: It’s very cheap. Only $0.001 that’s 1 tenth of a penny. To send as much of any pAsset or PEG that you want. Or convert as much of any pAsset say pBTC into pUSD as you want. Still only $0.001. That’s the cost of an entry credit to publish the transaction in Factom. The $0.001 isn’t sent to anyone it’s just burned.
Some other digital / synthetic type platforms charge 0.25% which gets expensive the more you convert in. So PegNet is pretty close to free to use, it’s open source and the miners earn PEG so it’s a very clean and simple design.
Oleg: $PEG enthusiasts, I am sure you are here reading all these words from Dave.
Great, thanks for the detailed answers, Dave. And now we go to Section 3: For the free chat Q&A from community, I am looking for some good questions from community now.
Questions from the Community
Aluta: Why did Pegnet choose LXRHash mining algorithm over existing mining algorithm like sha256 and Litecoin’s script hash for it mining?
Dave: Great question. PegNet went with LXR hash so that no big miners would have all the tokens for themsleves. We wanted PegNet to start with no ASICs. LXR is bound by RAM / Memory not compute, so its been a good fit for anyone to run on their laptop computer.
G4M3R: Why did Pegnet choose LXRHash mining algorithm over existing mining algorithm like sha256 and Litecoin’s script hash for it mining?
Dave: Yes I think 2020 is going to be a great year for DeFi. I think PegNet can play a big role because there is no much demand for Stablecoins. But we should use them in a decentralized way, so we don’t suffer the fate of Mt Gox. centralization again. Its also just cheaper and easier to use. That is the key.
blockchain: Why is PEG built on Factom over other comparably quicker and scalable chains? Why don’t PEG build their own solution system or chain?
Dave: We picked Factom because it has years of expereince with decentralized orcales. Factom is made for cheap transactions ($0.001). And Factom is all about data. We needed a way for the miners to publish their data on a blockchain and so it made coding the PegNet Dapp very fast development instead of building its own chain which takes years.
Juan: why do you think PEG conversions are unique ? And If we have more than 1 request, can we handle those requests based on their proportions of the total requested ?
Dave: Juan, The biggest advantage on PegNet for a trader is that the fees are so low that he can trade as much as he wants. https://medium.com/@DJohnstonEC/ready-trader-one-83ca7c30d596 I wrote about it here. The other big advantage is the trader has 0% slippage when doing conversions inside PegNet. He can go from pUSD to pGold and the protocol will give him as much value as he has in the network to convert. This is much better than a centralized exchange where there is slippage.
Imearth: What are the key highlights of PegNet’s technology and what can we expect in 2020 from your team in terms of development and progress and increasing and getting the community more involved?
Dave: Imearth, Well the community has been adding new features for PegNet very quickly. In August the mining launched, in October the conversions started, in December the arbtrage began. People launched the wallets and websites all on their own to show the assets. There are tons of proposals to make PegNet better. You can see the list of open source projects such as a mobile wallet for PegNet that people are working on right now. I’m donating to many of these PegNet projects to help make it better. https://docs.google.com/spreadsheets/d/1R7NtU83E9NoSEfbrWjugobCcqjv4it8wEN7SGw85fR0/edit?usp=sharing
Serg: Today, there are many new crypto exchanges as well as famous old crypto exchanges facing Liquidity problems & it leads to shutdown,
So how you solve this liquidity problem & ensures that users get good liquidity?
Dave: Serg, On liquidity this is where PegNet is very strong. There is no counter party. The user can deal directly with the PegNet protocol. Say you have 10,000 USD of pBTC and want to switch it into pETH. You can swap all $10,000 worth of pBTC to pETH for only $0.001 cost. There is no liquidity challenge, because there is no order book. You aren’t trading with someone else, you are just balancing your own value in your own portfolio.
Keniya: Today, there are many new crypto exchanges as well as famous old crypto exchanges facing Liquidity problems & it leads to shutdown,
So how you solve this liquidity problem & ensures that users get good liquidity?
Dave: Keniya, Great question. PegNet works with both Factom and Ethereum. There is a ERC20 version of the pAssets thats available on IDEX now for people to buy. So that extends PegNet assets to work with any Ethereum wallet or infrastructure if you get the ERC20 version. Here is the road map for that. https://medium.com/pegnet/adding-pegnets-passets-to-ethereum-6b20d63ae635
Quebs: Hello Dave. I see on ViteX some pUSD for sale at 1:0.88$. What is the plan to insure arbitration for pAssets prices?
Dave: Quebs, Arbitrage is important. There is a new proposal to increase the PEG available for arbitrage when the price of a pAsset is more than 1% different from its reference price. I think this type of improvement is important so that people can more quickly get paid to close the gaps in prices between the PegNet and the exchanges. There is a really useful diagram on the arb process in this article. https://medium.com/pegnet/predictable-supply-of-peg-3fd39124f36
Edogawa: What problems do you see with stable coins?
Dave: The biggest problem with stablecoins is either you have to trust a central reserve or you have to pay stability fees if its collatteral based. PegNet solves both problems as people add their own value to the assets on PegNet and there is no central reserve.
Abisola Lawal: What asset basket balancing strategy does Pegnet adopt?
In a situation where there’s lack of balance in the market, how will this be resolved?
Dave: PegNet doesn’t act like a basket. Each pAsset is priced by itself. pUSD is pegged to the USD price. pGold is pegged to the Gold price and so on. So people can choose what type of value they want to hold. The PEG token itself is used for the mining reward, for arb in the system and its the main gateway into the PegNet for people who want to hold pAssets. So PEG is the only variable token in the system, everything else is referencing either a crypto, fiat or metal price.
Oleg: It was a great AMA, but it is coming to an end, thanks to everyone who was with us. Thanks Dave for taking the time. I hope our projects will be able to collaborate even more closely in the future and achieve new successes. Cheers!
️ Any questions regarding PegNet will be sure to answered at
Dave: Thanks everyone. Great questions. Very smart community!
ViteX Official: https://vitex.net/
Vite Forum: https://forum.vite.net