The new ANIME will have a max supply set at 21 billion ANIME coins.
On “day one” of the fork, half of this max supply, or 10.5 billion ANIME, will be distributed to holders of ANI, for a ratio of approximately 5.1 ANIME received for every 1 ANI held on the fork snapshot date, which the developers currently plan on happening sometime to be announced in 2018.
After the initial distribution of ANIME on the fork date, the future growth in the supply of ANIME will closely follow the distribution schedule of Bitcoin, adjusted for the max coin supply and the faster block time.
For example, the BTC block reward began at 50 BTC per block, with a new block every 10 minutes. Because the ANIME max supply is 1,000x the size of the BTC max supply, we must multiply this by 1,000, but since there is a new ANIME block every 2.5 minutes instead of every 10 minutes for BTC, we must divide by 4; this implies an initial block reward of (50*1,000)/4, or 12,500 ANIME per block. This block reward would be reduced by 50% every 4 years, similar to how it works in Bitcoin.
The innovation of the new Animecoin project is that we are combining Zcash with the following features and functionality:
A Masternode system derived from DASH, but with major changes and improvements to the way Masternodes are compensated and audited by their peers, which will make the system more secure and decentralized.
Masternodes in the ANIME network will do a lot more work than in other Masternode coins: they are responsible not only for verifying transactions on the Animecoin network, but also for validating, storing, and retrieving Animecoin art assets.
The initial coin requirement for a Masternode will be set at 10 million ANIME. Masternode owners will receive their pro-rata share of 20% of the mining block reward and will also receive their share of any art registration fees.
In addition, Masternodes will have a special privilege in the Animecoin network: only they will be allowed to produce unique, one-of-a-kind art assets; all other users of the Animecoin system must create a minimum quantity of 10 pieces for their art assets. Each Masternode will be able to generate approximately four of these unique art assets per year, which presumably will become more valuable because of their extreme scarcity.
Importantly, and unlike the vast majority of Masternode coins on the market, the financial interests of Masternode owners will not be placed above the security of the ANIME blockchain, and the ANIME blockchain will award 75% of the mining block rewards to the miners that maintain the security of the network, with 20% going to owners of ANIME masternodes, and the remaining 5% to go to a treasury fund to support the development and marketing of the project, and in particular to help cover the considerable cost of exchange listings. (In comparison, DASH gives just 45% of the block reward to miners).
The asset creation and decentralized trading functionality of the Counterparty protocol. Note that this is different from XCP tokens, which are built on top of the Bitcoin blockchain. The Animecoin project is only taking the code from Counterparty, and instead of building a separate protocol layer on top of ANIME like XCP is built on top of BTC, the functionality of Counterparty is embedded in the ANIME coin protocol itself.
An all-new file storage layer that will be run by the Masternodes for storing the art images that combines several break-through technologies to create a robust and fault-tolerant system that will protect the art assets for the long-term, even without requiring a centrally coordinated server. Our system combines the Kademlia Distributed Hash Table algorithm with LT-Codes, all with end-to-end encryption using the Signal protocol.
While the specifics are complicated, the basic idea is that when a new art image is registered on the Animecoin network, a group of Masternodes are randomly selected by the network to process the file, breaking it up into thousands of redundant chunks, which are then redundantly spread out to all the Masternodes in the network.
A file can be reconstructed by assembling enough of these blocks, and 3 times more of these blocks are stored than are needed to reconstruct the original image files, so that even if many blocks are lost in the future, the images will always be safe. This means that there are two layers of defense against data loss: one is that the chunks of the file are redundant, so that you can lose some of the chunks; the other is that each chunk is stored on multiple different Masternode machines, so it is unlikely that you will lose chunks in the first place.
This is made possible by the fact that LT-Codes are a kind of Fountain Code, which means that every chunk of the file is like a droplet of water from a fountain: you just put your cup in and fill it up with droplets, you don’t care about which droplet is which. This avoids the frustrating issue that BitTorrent suffers from, where a few specific chunks of the file are missing from the BitTorrent swarm, and so no one can retrieve the entire file until a peer joins the swarm with that particular chunk.
ANIME is not just a solid crypto-currency that is built on top of proven and reliable technologies. It is also one of the few examples of a blockchain with a real-world use case, where the technology will enable useful economic activity that might otherwise not happen.
Importantly, the following measures are being taken to ensure a provably fair and transparent initial coin distribution, which we believe are critical for the long-term success and decentralization of a proof-of-work based crypto currency:
1) ZERO pre-mine: developers will start mining at the exact same time as everyone else, on a date that will be pre-announced publicly (tentatively on the coin distribution date soon after the snapshot).
2) 100% of the initial coin distribution will go to existing owners of ANI (which was fairly distributed with no pre-mine), and to owners of MEME in return for use of their codebase and to align them with our efforts for ANIM.
A common question at this point is “Why fork that dead coin? Why not just make a new coin from scratch?”
There are several reasons why we want to go the fork route, but the main ones are that:
A) It’s a provably fair way to distribute the initial coins, since anyone can freely buy ANI on the open market right now, before the fork snapshot date, and receive the new ANIME coin.
B) It puts a large block of coins (50% of the max supply of ANIME) into the hands of anime/crypto fans who have mostly been involved in the crypto world for a “long time” (since 2014!)