StakeNet Whitepaper

Abstract

Stakenet (XSN) is building an integrated decentralized ecosystem to create a suite of effective
investment tools for investors and the world’s first truly decentralized cryptocurrency bank. The frontend
consumer interface, Stakenet.io, is scheduled for release in June 2018. The Stakenet blockchain is
powered by its own native coin XSN, which can be used to pay for all the services and products within
our ecosystem. The Stakenet ecosystem will be comprised of the following elements:

Trustless Proof of Stake (TPoS): TPoS is a Stakenet invention. While crypto investors currently use offline
storage such as Ledger or Trezor for mere storage, TPoS transforms these cold storage devices into
profit generating devices. Rewards flow to the coin owner while the coins remain offline. TPoS is fully
operational and available for everyone who owns XSN. This technology will be available for cross chain
purposes upon implementation of CCPoS, described below.
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Decentralized Exchange (DEX): XSN will create crypto’s first truly decentralized cryptocurrency exchange
run by masternodes. These masternodes will be rewarded through trading fees and will act similarly to
Stakenet.io in that once XSN cedes control, the masternodes will run the network and cannot be shut
down by XSN or any third party.
Masternodes with multiple sources of income: XSN masternode owners will have three sources of
income: regular blockrewards, DEXs’ trading-fees and fees for running TOR-network services.

Investment Agility due Cross Chain Proof of Stake (CCPoS): Another XSN innovation under development
is CCPoS. With this technology we aim to enable users to stake XSN and receive rewards in any other
coin. Herewith individuals will be enabled with flexibility to switch rewards on the fly to that new “hot
coin”, if they so desire.
Profit-sharing, buy-back-burns and Revolving Stake Bonus (RSB): All profits will be given back to XSN coin
owners one way or another. Some options being explored are coin buy-back-burns and air drops to
existing coin owners. Other options will be distributing the service-fees to all involved parties. At least
XSN will reward coin holders via an RSB mechanism, which is a proof of burn technology for service- and
business-provider who use the XSN network.
Convenience due a new multi-currency wallet: Stakenet multi-currency wallet will enable users to stake
and earn rewards from one location, rather than as currently where a wallet is required for each specific
coin.
Cold storage exchanging from a hardware device: In 2018 Q4, users will have the ability to trade Ledger
and lightning network compatible coins through our DEX without the coins ever leaving the security of
cold storage.

TPoS Marketplace: Stakenet.io will host a merchant marketplace where coin owners can hire merchants
to trustlessly stake their coins using TPoS, while the coins remain on a Ledger or Trezor hardware wallet,
or any other cold storage. Furthermore, it will also be possible to be your own merchant without any
restrictions.

Security: Stakenet will initially be centralized but will thereafter run entirely by masternodes. This
decentralization removes the risk of obstruction or being shut down by third parties. Furthermore, our
TPoS consensus ensures the maximum level of network security along all existing PoS solutions.

Privacy: XSN is building crypto’s first internal TOR network run by masternodes. Whereas TOR has been
utilized in crypto by coins like XVG, those methods are fundamentally flawed due to exit node relay
detection. Our TOR masternode network won’t have this vulnerability and will allow truly obfuscated
transactions. Moreover, the Stakenet blockchain utilizes coinmixing and will encrypt transactions due
to the zK-SNARK protocol.

StakeNet Website
StakeNet Whitepaper

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