Dear DDK Stakeholders!
We refer to the Security Commission Malaysia Investor Alert List (https://www.sc.com.my/resources/media-releases-and-announcements/investor-alert-listas-at-1122020) where DDKoin (“DDK”) was listed on 01st December 2020 on the list (“Alert List”) with remarks “Carrying out unlicensed capital market activities of dealing in securities.”
We would like to clarify herewith the followings;
- Firstly, we would like to thank the Securities Commission Malaysia (SC) for stating that the list is not exhaustive and only serves as a guide to investors prior to making any investment decisions.
- We hope that that existing community is not stirred with the Alert List as we are working swiftly to seek assistance from Security Commission Malaysia (SC) on the grounds and justifications as to why DDK was listed on the list in order to understand the situations and therefore tackling the issues at hand.
- For a start, transactions and dealings of DDK was never and should never be considered as dealing in securities. The listing of DDK on crypto-exchanger is as utility token taking into accounts on these substantial factors, firstly, DDKoin is made available only through crypto-exchangers where DDKoin is listed. This means that DDK Platform does not gained from the stakeholders in exchange for DDKoin. Stakeholders are not giving any of their assets to the DDK Platform to manage, there is no type of “funds” or “assets” management of stakeholders that is done by DDK Platform. In this manner, DDKoin also should not be considered as a collective investment scheme. In addition, passive holding of tokens does not result any profit, income or other payments or returns arising from tokens. Stakeholders are responsible for their own management of assets and utilization in an open-source platform.
- Secondly, stakeholders do not receive profits by holding of tokens. There is no capital appreciation, cash return or any other earnings or monetary compensation in holding the tokens. DDK Platform does not offer any profit or any other benefit (except rewards in the form of DDKoin), nor expectation of profit as it is typically provided by securities. DDK Platform does not provide stakeholders with any ownership interest in as it is usually provided by shares.
- Thirdly, we have to reiterate that DDK Platform is a genuine 100% decentralized (opensource) platform using Delegated Proof of Stake (DPoS) technology. We have active users from more than 10 countries consisting of more than over 200,000 stakeholders around the globe. Stakeholders own democratic voice in deciding who is responsible for processing and managing transactions on the platform, where it is done using a unique voting system to achieve consensus – the process of verifying that transaction data is valid based on the general agreement of the trust-elected network through the voted delegates.
- DDK Platform through the DPoS protocol shall be separated from blockchains that are restricted and are for government work, corporate purposes, military projects, etc. If a blockchain is made for a particular purpose, it may not be accessible to everyone. It can be made for businesses, governments, education projects, healthcare or intelligence projects. A blockchain that is not publicly presented and accessed by everyone is not a truly open blockchain. Again, we have to reiterate that DDK is a
public blockchain that can be accessed by everyone and it is not limited in any way. For more info, you may visit DDK Explorer:
Explorer 1 : https://explorer.ddkoin.com/
Explorer 2 : https://ddkexplorer.ddkoin.com/
- DDK Platform is also on the final stage of perfecting its Core 2.1, where the platform will escalate its overall performance and functionality through the divergence of the Ethereum blockchains. These are the significance functions and characteristic of DDK Core 2.1;
a. New Payment Address – All new addresses are encoded with the Base58Check which validates entire receiving addresses and prevents faulty transactions & human-errors such as incomplete copy/pasting, typing 0 instead of O and others. Just like the Bitcoin blockchain, DDK addresses will have a fixed length of 37 characters and will start with a “DDK” prefix making them always easily recognizable.
b. Improved Key & Cryptographic Signatures – DDK Core 2.1 will use the Elliptic Curve Digital Signature Algorithm (ECDSA) to issue private/public keys and assign signatures. ECDSA is an improved variant of the DSA standard which is based on modular exponentiation. ECDSA algorithms make it possible to send private & secure messages, in our case – transactions of DDK equipped with 3 distinct and very important security properties:
- Source authentication: The receiver can verify the origin of the message and who sent it;
- Integrity verification: The receiver can verify that the message has not been edited or changed since it was signed;
- Non-repudiation: The sender cannot revert back and falsely claim that they have not signed the message;
These aforementioned properties ensure that source authentication, integrity verification and non-repudiation security goals are achieved. DDK ECDSA runs with the most trusted and time-proven Secp256k1 curve which is also the same curve used in the Bitcoin blockchain.
c. Built-in Smart Contracts – DDK Core 2.1 will come with built-in, pre-compiled smart contracts for DDK Asset Issuing (DAI), Multi-Signature, and possibly for other use cases in the future. Smart Contracts are programmable agreements between multiple parties with transparent rules and irreversible in nature once executed.
Smart contracts provide the ability to shift various agreements between individuals and organizations onto the blockchain thus greatly increasing execution times and essentially making them tamper-proof.
d. Native Assets: Token Issuance/ DAI – One of the highly anticipated functions which have been built-in in the DDK 2.1 Core is the ability to issue tokens. While ERC20 and other ERC standard-based tokens are created on the Ethereum blockchain, DDK will have its own universe of assets with numerous
Use Cases: (payment vehicles, voting tokens, property rights, collectible items are just some of the examples to name a few) which enable the build of useful applications or businesses by using this smart contract.
e. DDK Asset Issuing will allow users to store and create their own token in DDK Platform. In order to create the new token using DAI, it requires the process of the issuer to burn DDK native coins in order to issue the new token. This burn amount of DDK native coin is directly relative to the minted supply of newly issued token that the issuer wants to create. The sky’s the limit and with native assets, DDK blockchain enters a whole different world of possibilities to build useful applications as well as businesses.
f. Multi-Signature Capabilities – Multi-Signature is a specific scheme that requires multiple (at least two) signatures in order to verify and execute the transaction. It means that in order to send funds from a Multi-Sig enhanced wallet, all keyholding parties must approve the transaction for it to happen. This is because the account will require the signatures of multiple people before the funds can be transferred out.
It is an extremely useful safety feature utilized by trusts, funds, and organizations managing either vast sums of money or acting on stakeholders’ behalf. Moreover, it makes it near impossible for a fraudster to withdraw funds and get away with the money.
g. Hierarchical Deterministic (HD) Wallets – HD Wallets are time & effort saving functionality that significantly improves legacy systems of conventional wallets. Since the cryptographic DSA addresses started to be used, the user had to repeatedly generate new private/public key pairs for receiving and sending messages (transactions). This method requires a backup after the creation of every address to keep track of all the private/public key pairs.
With HD wallets, however, all possible key pairs are generated instantly using the 12-word recovery seed phrase. It also allows determining the whole tree of public keys (addresses) from a parent public key – private keys are not required.
Moreover, the owner of the parent private key can set up hierarchical branches and generate public/private key pairs for each branch to delegate access and management rights to others. This way a ‘branch manager’ can spend coins and execute transactions that are located in that particular branch without having access to the whole system.
It allows the compartmentalization of activities and implementation of accounting as well as governance systems – HD wallets significantly improve the management and efficiency of private/public keys.
h. Enhanced Network Scalability – With the new update, DDK Core 2.1 will operate with increased block sizes and immensely increases the number of transactions that can be included in a single block. It makes space for thousands of transactions being bundled and added to the chain every single time a new block is being created.
Blockchain transactions now will have the option to include auxiliary data also referred to as metadata that may provide additional data about how the block has been generated. DDK Core 2.1 is presented with an estimation of 1 block is 30 second. 1 block can fit a minimum 1 transaction to maximum 6000 transactions per block. 1 transaction is ~64KB and 1 block maximum size is 1MB (Not MiB). Meaning DDK Core 2.1 would be around ~217 TPS (Transaction Per Second).
i. On-Chain Referrals – From now on we can switch to provide a really transparent and fair way for people to be rewarded. People that are bringing more value and transactions onto the DDK Platform can now be rewarded directly through the blockchain by gaining a portion of the fees spent by the new users they have referred.
j. Multiple-thread of CPU – DDK Core 2.1 and the new wallets will run in multiplethread of CPU in which multiple tasks can be processed at the same time, unlike current Nodes core which can only utilize a single thread at one time. The tasks to be performed by a process are being broken down into sub-parts, and multiple CPUs (or multiple cores) will process each sub-task at precisely the same time.
i. DDK Core V2.1:
- C++ core: Linux, Windows, Mac
- Docker core: Linux, Windows, Mac
ii. New wallet:
- OS: Linux, Windows, Mac/iOS, Android, Web
k. Open for passphrase redemption and Send Stake function – Passphrase redemption will be open to those users from the previous ETPS platform (centralized Pre-ICOs) who have not got their account passphrase yet. In addition, DDK Core 2.1, we enable the send-stake function which users are able to transfer the ownership of a stake contract to other users. We believe these two (2) features are the most awaited DDK structure that is built for DDK community solutions and bigger community expansion.
l. New Transaction – In DDK Core 2.1, there will be a few new transactions that will exist. Apart from the current transaction which is vote, unvote, send, stake, 2nd passphrase and Delegate registration, on this DDK Core 2.1 other transactions are going to be added to improve the platform such as send stake function, multi-signature and many more that will be finalized soon.
m. Changes in the number of Active Delegates – There will be a change in the number of Active Delegates from 101 to 51 active Delegates due to ensure the stability of the DDK Core 2.1 platform that required only ACTIVE nodes to be operated without a missed block. We can see that 50% of the Delegates nodes as per current status – https://explorer.ddkoin.com/delegates shown were active nodes. Thus this decision was made by assistance of the group of DDK Developers based on the current analysis and nodes performance to make sure that when DDK Core 2.1 is implemented, it would be as efficient as planned.
n. The information stated herein is subject to change and any changes we may make to our development in the future will be notified to you by announcement, where we consider it appropriate.
- We respect the due diligence process and procedure conducted by SC as they are obliged to protect Malaysians interest, as we too have continuously reminded our potential and existing users to perform their own due diligence through research and understanding of the use of any site and services that have significance financial risks. We have also reminded users to do due diligence before taking part in any of open market promotion especially those which are not aligned with the DDK official whitepaper and/or DDK official media channel.
We take this issues with utmost importance and urgency to safeguard the interests and confidence of DDK users. We hope that we are able to further clarify on the situations upon receiving responds from SC on this matter.
Your cooperation is highly Appreciated