VOICE OF CRYPTOCURRENCY: BITNATION Organization: A Decentralized Borderless Voluntary Nation (DBVN)

About Pangea

The Pangea Software is a Decentralized Opt-In Jurisdiction where Citizens can conduct peer-peer arbitration and create Nations. Pangea uses Panthalassa mesh, which is built using the Secure Scuttlebutt (SSB) protocol and the Interplanetary File System (IPFS). This allows Pangea to be extremely resilient and secure, providing resistance to emerging threats such as high performance quantum cryptography. Pangea is an agnostic blockchain but uses the Ethereum blockchain for now. In the future, other chains like Bitcoin, EOS, and Tezos can be integrated with Pangea.

BITNATION Organization: A Decentralized Borderless Voluntary Nation (DBVN)

DBVN is derived from the term Decentralized Autonomous Organization (DAO), coined by Larimer and Buterin in 2013

The DBVN term first appeared in the original Bitnation Whitepaper of 2014. A DBVN is defined as:

Bitnation’s vision is a global free market for governance services. A post-Nation State world of Voluntary Nations, City States and Autonomous Communities which compete for Citizens by providing a range of opt-in governance services. In our world sovereignty shifts decisively from the State to the Citizen, and humanity reclaims freedom of choice when accessing governance services.

This vision sharply contrasts with the current world order, where Citizens are forced to compete with one another to receive their desired governance outcomes — a process that often leads to violence and conflict. In Bitnation’s world, you can become a Citizen of any Nation through a smartphone application. Competition for Citizens drives down costs and improves the quality of services. In a Bitnation future there is little incentive for violence because every one of us is a potential customer.

Pangea Use Cases

● Decentralized: Decentralization is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority. In the realm of a DBVN, decentralization translates into both technological and human decentralization through the use of P2P (Peer-to-Peer) technology, modular interfaces, API (Applications Programming Interface) layers, and forkable (duplicated) code. This means that every user can become its own node and transform the platform to their own liking.

● Borderless: DBVNs do not limit their services to any specific geographical area, ethnicity or other category of populations. They have no borders or ports of entry: no land boundaries, airports, coastlines, or seaports. DBVNs provide services to all areas, regardless of where it is geographically located. Some would claim that a DBVN is ‘virtual’ by design. Although virtual-by-design is an intuitive assumption, a DVBN does not have to be based entirely in the virtual world and neither does its services.

● Voluntary: DBVNs do not use force, fraud, or coercion, nor do they subject their citizens to involuntary servitude, peonage, debt bondage, or slavery. Due to the fact that DBVNs are voluntary in nature, they are inherently free of persecution, intimidation, reprisals, and other forms of systematic violence. DBVNs compete in a free market where customers, the “citizens” of the platform, voluntarily choose which DBVNs they want to use. Citizens may opt to use several DBVNs, none at all, or create their own DBVN.

● Nation: A Nation is a large group of people who share a common language, culture, ethnicity, descent, or history. In the case of DBVNs it is likely that people would be as connected through mutual interests and goals as they would be connected by more traditional commonalities such as culture and language. A nation is a voluntary formation rather than a governing entity (i.e. a state). We provide the tools for governance but do not impose them, nor do we impose any specific code of law or regulations.

Peer to peer contracts

Imagine being able to make complex legal agreements at ease from your smartphone, through a userfriendly chat interface, similar to WeChat, Signal, WhatsApp, or Facebook Messenger, but without the time, costs and bureaucracy of public notaries, lawyers and regulators. And if a dispute arises, you can select the arbitrator of your choice on a free market for arbitration, depending on your budget and preference, the same way you would choose a rental apartment on Airbnb or a vendor on eBay.

Pangea Technology

“A phase change is coming. Virtual communities are in their ascendancy, displacing conventional notions of nationhood. Geographic proximity is no longer as important as it once was.”

Pangea is a decentralized jurisdiction for the peer-to-peer creation of voluntary nations and making and arbitrating solemn agreements. The Pangea frontend is built as an intuitive mobile chat application, while the backend is a mesh network which can be configured to communicate with any blockchain to create and execute smart contracts. On Pangea users, arbitrators and smart contracts can build reputation and are rewarded for fulfilling contracts and resolving disputes with Pangea Arbitration Tokens (PAT).

Evolution of Pangea

The very first iteration of Pangea was built on the Horizon blockchain in 2015. Horizon is a fork of NXT that allows for greater on-chain storage. After building and

releasing the first version, market analysis suggested that in the future peer-to-peer contracts are most likely to achieve mass adoption through chat applications. We also understood that a blockchain-based communications protocol would be too slow and expensive to use to be practicable. At that point our design focus switched to a mobile-first chat platform based on a decentralized communication protocol which could be configured to interact with blockchains.

Governance Services: DApps and Chatbots

Pangea’s API (Application Programming Interface) will allow DApp (Decentralized Applications) and chat bot developers to create third- party applications as services on Pangea that Citizens or DBVNs that live on Pangea could choose to use. Examples could include applications such as:

● Peer-to-Peer Financial Redistribution: For instance, Johan Nygren’s work with

resilience.me to build a peer-to-peer basic income protocol as well as a redistribution scheme called Taxeme could be opted into by individual Citizens on Pangea or adopted by DBVNs for all their Citizens.

● Crowd Arbitration: Pangea’s native arbitration system isfocused on peer-to-peer arbitration. Other types of arbitration, such as Crowdjury, can be provided via a third-party DApp.

● Peer-to-Peer Security: For actual physical security, a third-party developer could develop a DApp to for instance provide a form of ‘neighborhood watch’ in their area — similar to the concept of for instance Cell 411 and other security applications.

Pangea Reputation System: Proof-of-Agreement (POA)

POA non-tradable tokens build an individual user’s reputation on Pangea. When Citizens create and complete contracts, and resolve disputes relating to these contracts, they are rewarded with the POA portion of PAT. POAs are non-tradable to prevent user reputations being bought or sold. Making the POA portion of the PAT token non-tradable ensures that reputation can only be gained through successful contract creation, dispute resolution and execution and not through monetary means or popularity.

Pangea Business Model

The Pangea revenue model is based on two sources of income relating to contract creation and

execution respectively:

1. A small transaction fee on the amounts arbitrators, judges and juries charge for their services on Pangea (in Bitcoin, Ether or other cryptocurrencies converted on-platform into PAT);

2. A small transaction fee on top of the amount miners charge to timestamp and execute smart contracts created on Pangea on Ethereum or other integrated blockchains (also converted into PAT). Revenue is charged in PAT, convertible from other cryptocurrencies on the platform. Development priorities and budgets will be discussed through forums like consider.it and the final budget allocation will be made through the multisignature delegates.

TSE Token Release

The token sale is split into three phases and a total of 14.28 billion PAT (34%) will be sold across the three phases of the sale.

Sale phases:

• Phase 1: Presale — completed in December 2017.

• Phase 2: Public auction — 1 month auction of up to 7.3% of PAT supply.

• Phase 3: Slow release — the remaining unsold tokens will be sold via exchanges over the following 24 months so that a total of 14.28 billion (34%) have been sold by

April 2020.

The total amount of PAT in circulation 24 months after the public sale finishes (25 April 2020)

will be 14.28B (34% of 42 Billion) in addition to the PAT allocated to the core team and issued for bug bounties.

The public sale begins March 25th, 2018 4pm CET and finishes when either the hard-cap is reached ($27.3M of Ether has been bid), or on April 25th 16h00 CET. The sale is hard-capped at $27.3M USD and the token price is set by the market. This is achieved using a reverse auction with a variable price for the token. One of the effects of this model is that we do not know how many tokens will be sold during the auction. The higher the market-set price of PAT, the fewer tokens will be issued in order to reach the hard-cap.

TSE Smart Contracts

The TSE code is based on two smart contracts: one represents the tokens purchased and the other one is the TSE. PAT is an Ethereum ERC20 token. Tokens are released by the DBVN through the TSE contracts for buyers. The PAT token and TSE contracts have been designed by our solidity coding partners and TSE contract specialists ABDK Consulting . The TSE and token contracts have been externally audited and tested to guarantee the safety of the TSE.

The remaining 34% of tokens will be used to power the platform by crediting users who have built up a large amount of non-tradable reputation tokens on Pangea as outlined in section 3.

Distribution

Our goal is to maximize both the quantity and orientation of token-holders to ensure decentralization and build a stakeholder community aligned with our vision. To maximize quantity, PAT tokens will be made available for purchase through a range of exchanges and wallets after the TSE.

TSE Fund Release

Funds are released using the DBVN Liquid Holcratic decision-making rule. The token sale fund will also be used to fund developers of third party governance DPLs, local Embassies and Consulates, reward bugs, and contributor bonuses. The proposal will be published publicly on the Bitnation project page, empowered by consider.it.