Fantasy Gold

Fantasy Gold White-paper v1.0
January 2018

 

Acknowledgements
Fantasy Gold would not have been possible without the prior works of the respective Bitcoin,
Peercoin, Blackcoin, Talkcoin, Dash, PIVX and Bulwark teams. We’d like to thank these teams
for continuing to improve upon open source Blockchain technology which has been a spring
board for new innovations and a new digital revolution.
Our most important thanks is to the original DFSCoin community who HODL’ed through it all.
They supported our project, and believed in us. They say that Blockchain empowers the people
but without a community its just bits of data in cyberspace.

“Creativity comes from applying things you learn in other fields to the field you work in.”
― Aaron Swartz

 

 

DISCLOSURE STATEMENT
THIS INFORMATION CONTAINED IN THIS DOCUMENT IS INFORMATIONAL AND
EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS INVESTMENT
ADVICE. FANTASY GOLD IS AN IN GAME DIGITAL CURRENCY. FANTASY GOLD IS NOT A
SECURITY AND SHALL NOT REPRESENT FRACTIONAL OWNERSHIP OF THE OPEN-
SOURCE FANTASY GOLD PROJECT, BUT RATHER AS ACCESS RIGHTS, USE RIGHTS AND
PAYMENT MEANS WITHIN THE PROJECT’S ECOSYSTEM. CERTAIN FUNCTIONS OF THE
FANTASY GOLD BLOCKCHAIN SUCH AS MASTERNODES, STAKING, AND BLOCK
REWARDS ARE IN NO WAY TO BE CONSTRUED AS A DIVIDEND, INTEREST PAYMENT OR
PROFIT SHARING.
FANTASY GOLD IS A DIGITAL CURRENCY AND AS SUCH READERS SHOULD BE AWARE
THAT THE MARKET FOR DIGITAL CURRENCY IS STILL NEW AND UNCERTAIN. NO­ONE
SHOULD HAVE FUNDS INVESTED IN DIGITAL CURRENCY OR SPECULATE IN DIGITAL
CURRENCY THAT HE OR SHE IS NOT PREPARED TO LOSE ENTIRELY. WHETHER THE
MARKET FOR FANTASY GOLD WILL MOVE UP OR DOWN, OR WHETHER FANTASY GOLD
WILL LOSE ALL OR SUBSTANTIALLY ALL OF ITS VALUE, IS UNKNOWN.

 

Introduction
Fantasy Gold built by the developers of DFSCoin to swap its blockchain to use the latest
advancements in Masternode services and decentralized community governance.
Fantasy Gold is a peer to peer crypto currency aimed at serving the growing fantasy sports
industry in both the B2B and B2C spaces. Fantasy Gold acts as both an in game currency used
to enter contests and pay prizes as well as a payment processing network governed by its
community. Our coin is more secure for both the end user and fantasy sports sites. Transaction
costs are fractions of a penny and our blockchain and open ledger players can be confidant
their deposited funds are safe and used only to pay out prize pools.
Fantasy players can secure Fantasy Gold on their personal desktop wallet. Players only need to
send Fantasy Gold from their personal wallet to fantasy sports sites to top off their account and
enter contests. Fantasy Gold can be encrypted and or backed up and saved off­line to a USB or
other air gapped device. The wallet only needs an Internet connection to sync with the Fantasy
Gold blockchain, send transactions or when used as a staking wallet once we enter our proof
of stake phase.
The Fantasy Gold blockchain is an encrypted structure of data that represents an open
financial ledger and as such FG deposit addresses can be easily and publicly verified. This will
allow site owners to publicly display the total amount of deposited funds being held to cover
prize pools or the total available FG available to cover guaranteed prize pools and tournament
events. Using an open financial ledger players can be assured that deposited player funds are
properly segregated from company expense accounts.
Fantasy Gold transactions cannot be reversed which eliminates the increasing risks and fees
associated with charge back fraud. Because the Fantasy Gold blockchain and network is
decentralized there is no central authority that can freeze your funds unlike traditional
centralized payment processors and banks. In effect merchants, players or even casual holders
of Fantasy Gold are acting as their own bank and payment processor. When end users make
deposits or purchases using Fantasy Gold merchants can store funds on a private and
encrypted desktop wallet or be securely stored off line or a paper wallet. Transactions sent to
off line and can be monitored and confirmed by simply viewing the Fantasy Gold block
explorer.
An open source and free to use Fantasy Gold API will be published on the projects block
explorer. The source code for the explorer in the Fantasy Gold public software repository
hosted on Github along with the full Fantasy Gold source code for public inspection.
Unlike using traditional centralized payment processing the Fantasy Gold project dose not
charge any addition transaction or service fees to use the payment network. Senders pay a small transaction fee that is awarded to miners who process the transactions and Masternodes
who verify the transactions. Anyone with access to standard desktop graphics cards can act as
a miner and anyone who holds 10,000 Fantasy Gold coins can run a Masternode on a basic
VPS, server or even a raspberry pi with a static IP address.

 

What is a Blockchain?
A blockchain is the structure of data that represents a financial ledger entry, or a record of a
transaction. Each transaction is digitally signed to ensure its authenticity and that no one
tampers with it, so the ledger itself and the existing transactions within it are assumed to be of
high integrity.
This ledger of past transactions is called the block chain as it is a chain of blocks. The block
chain serves to confirm transactions to the rest of the network as having taken place. The
transactions are collected in blocks, which are found approximately every ninety seconds in a
random process called mining.
As transactions transfer ownership of Fantasy Gold coin balances, each of these blocks
represents an update of the user’s balances on the network. By following the blockchain from
the Genesis Block and applying all transactions that were validated in each block in the correct
order, you arrive at the current status quo.
These digital ledger entries are distributed among a decentralized network infrastructure of
Masternodes. These additional Masternodes and layers in the infrastructure serve the purpose
of providing a consensus about the state of a transaction at any given second; they all have
copies of the existing authenticated ledger distributed amongst them. Masternodes are
authoritative in the since that they check the work provided by miners.
When a new transaction or an edit to an existing transaction comes in, generally a majority of
the Masternodes within a blockchain implementation must execute some algorithms and
essentially evaluate and verify the history of the individual blockchain block that is proposed,
and come to a consensus that the history and signature is valid, then the new transaction is
accepted into the ledger and a new block is added to the chain of transactions.
If a majority of Masternodes do not concede to the addition or modification of the ledger
entry, then it is denied and not added to the chain. This distributed consensus model is what
allows blockchain to run as a distributed ledger without the need for some central, unifying
authority saying what transactions are valid and (perhaps more importantly) which ones are
not.

What is Mining? (Proof­of­Work)
Mining serves as two purposes:
1. To verify the legitimacy of a transaction, or avoiding the so­called double­spending. 2. To create new Fantasy Gold coin by rewarding miners for performing the previous task.
When you want to set a transaction this is what happens behind the scenes:
 Transactions are bundled together into what we call a block.
 Miners verify that transactions within each block are legitimate.
 To do so, miners should solve a mathematical puzzle known as proof­of­work problem.
 A reward is given to the first miner who solves each blocks problem.
 Verified transactions are stored in the public blockchain.
This “mathematical puzzle” has a key feature: asymmetry. The work, in fact, must be
moderately hard on the requester side but easy to check for the network. This idea is also
known as a CPU cost function, client puzzle, computational puzzle or CPU pricing function.
All the network miners compete to be the first to find a solution for the mathematical problem
that concerns the candidate block, a problem that cannot be solved in other ways than through
brute force so that essentially requires a huge number of attempts.
When a miner finally finds the right solution, he/she announces it to the whole network at the
same time, receiving a cryptocurrency prize (the reward) in our case FG is provided by the
protocol.
From a technical point of view, mining process is an operation of inverse hashing: it
determines a number (nonce), so the cryptographic hash algorithm of block data results in less
than a given threshold.
This threshold, called difficulty, is what determines the competitive nature of mining: more
computing power is added to the network, the higher this parameter increases, increasing also
the average number of calculations needed to create a new block. This method also increases
the cost of the block creation, pushing miners to improve the efficiency of their mining systems
to maintain a positive economic balance.

What are Masternodes?
Masternodes help secure the Fantasy Gold network by making it more decentralized, providing
a consensus for every transaction.
Masternodes are nodes (servers) that run the Fantasy Gold wallet software that provide
additional services to the network including, instant and private transactions. However the one
of the more important features are decentralized community governance and budgeting
systems and the ability to publish immutable proposals to the community with the means to
vote on proposals.

 

For providing these important services, Masternode owerns are rewarded a portion of each
block.
Block rewards will be split between Miners and Masternodes for the first 12 months favoring
Masternodes as follows:
50% Miners / 50% Masternodes
40% Miners / 60% Masternodes
30% Miners / 70% Masternodes
20% Miners / 80% Masternodes
It will take 90 days to reach the 20% / 80%. The Proof­of­Work phase will end in 12 months at
block 345,600 and after 12 months Proof­of­Stake will be enabled. Block rewards will be split
in PoS phase as follows:
45% PoS
45% Masternodes
10% Dev Fund
These changes in the block reward split and the switch from Proof­of­Work to Proof­of­Stake
happen automatically and are hard­coded into the Fantasy Gold blockchain and cannot be
changed any one person, central authority or bad actor. We are able to give the times at which
changes will occur because these events are programmed to take place when the blockchain
reaches a certain hight or number of blocks, the Genesis Block or first block to be created is
block zero (0) and a new block is created every 90 seconds. The 90 second block spacing
means that 960 blocks will be created every 24 hours.

What is Proof­of­Stake? (PoS)
Once Fantasy Gold switches to a PoS network wallets holding Fantasy Gold will ‘Mint” coins by
letting them mature. The minting process involves holding coins in a wallet and then
unlocking the wallet and staking those coins. Wallets that stake will earn 45% percent of the
block reward. This algorithm, know as Proof­of­Stake allows users to generate more coins
without the need of any hardware or high electricity costs.
Proof­of­stake is a different way to validate transactions based and achieve the distributed
consensus. It is still an algorithm, and the purpose is the same of the proof of work, but the
process to reach the goal is quite different.
Unlike the Proof­of­Work, where the algorithm rewards miners who solve mathematical
problems with the goal of validating transactions and creating new blocks, with the proof of
stake, the creator of a new block is chosen in a deterministic way, depending on its wealth,
also defined as stake.

 

Fantasy Gold Specifications at a Glance
Ticker: FG
Algorithm: NIST5
RPC Port: 52541 (TBD)
P2P Port: 52543 (TBD)
Block Spacing: 90 Seconds
Difficulty Algorithm: Dark Gravity Wave v3.0
Block Size: 1MB
Mined/Minted Maturity: 67 Blocks (~100 Minutes)
Confirmation: 6 Blocks (~9 Minutes)
PoW Period: nHeight ≤ 345,600
PoS Period: nHeight ≥ 345,601
Protocol Support: IPV4, IPV6, TOR
PoS: Blackcoin v3.0 PoS, PIVX SeeSaw rewards.3.2

Dark Gravity Wave 3.0
Dark Gravity Wave is employed by Fantasy Gold from the start as a method of retargeting
PoW difficulty. It uses a simple moving average that can respond to large nethash
increases or drop­offs in just a few blocks. This alleviates the “stuck block effect” often
caused by multipools and prevents one person adding a substantial amount of computing
power from instantly solving more than a few blocks.

Block Rewards
PoW Block Rewards
Subsidy Block PoW MN Circulation
4,000,000 1 100% N/A 4,000,000
~25(avg) 2­960 50% 50% 4,023,430
50.00 961­28800 40% 60% 5,463,430
50.00 28801­57600 30% 70% 6,903,430
50.00 57601­86400 20% 80% 8,343,430
43.75 86401­172800 20% 80% 12,123,430
37.50 172801­259200 20% 80% 15,363,430
31.25 259201­345600 20% 80% 18,063,430

PoS Block Rewards
Subsidy Block Budget PoS/Masternode Time
25.000 345601­432000 10% SeeSaw Year 2
21.845 432001­518400 10% SeeSaw Year 2
18.750 518401­604800 10% SeeSaw Year 2
15.625 604801­691200 10% SeeSaw Year 2
10.250 691201­777600 10% SeeSaw Year 3
10.938 777601­864000 10% SeeSaw Year 3
9.375 864001­950400 10% SeeSaw Year 3
7.812 950401­1036800 10% SeeSaw Year 3
6.250 1036801­1123200 10% SeeSaw Year 4
5.469 1123201­1209600 10% SeeSaw Year 4
4.688 1209601­1296000 10% SeeSaw Year 4
3.906 1296000­1382400 10% SeeSaw Year 4
3.125 1382401­1468800 10% SeeSaw Year 5
2.734 1468801­1555200 10% SeeSaw Year 5
2.344 1555201­1641600 10% SeeSaw Year 5
1.953 1641601­1728000 10% SeeSaw Year 5
1.625 1728000+ 10% In perpetuity

NIST5 Hashing
What is NIST5?
The National Institute of Standards and Technology (NIST) opened a public competition on
November 2, 2007, to develop a new cryptographic hash algorithm – SHA­3, which will
augment the hash algorithms specified in the Federal Information Processing Standard (FIPS)
180­4, Secure Hash Standard (SHS). The competition was NIST’s response to advances in the
cryptanalysis of hash algorithms. NIST received sixty­four submissions in October 2008, and
selected fifty­one first­round candidates on December 10, 2008; fourteen second­round
candidates on July 24, 2009; and five third­round candidates – BLAKE, Grøstl, JH, Keccak and
Skein, on December 9, 2010, to advance to the final round of the competition. Eighteen
months were provided for the public review of the finalists, and on October 2, 2012, NIST
announced the winning algorithm of the SHA­3 competition – Keccak. NIST5 chains the 5 final round candidates for SHA­3 hash competition, which were all selected
for their performance & security (BLAKE ­ Grøstl ­ JH ­ Keccak ­ Skein). For more information
on the NIST competition see here: http://nvlpubs.nist.gov/nistpubs/ir/2012/NIST.IR.7896.pdf

 

Feature Set
Masternodes
Masternodes are, a decentralized network of servers that serve the Fantasy Gold blockchain.
Masternodes perform important network functions and receive part of the block rewards.
Masternodes help the Fantasy Gold ecosystem by stabilizing coin supply, processing
transactions, and securing the network. Masternodes require 10,000 FG and modest technical
knowledge to operate. Any Fantasy Gold wallet holding 10,000 FG can set up a Masternode.

Obfuscation / Coin Mixing
Fantasy Gold has Obfuscation features, based on CoinJoin, but coin mixing is done in a
decentralized fashion through Masternodes allowing for an additional layer of privacy. While
not perfectly anonymous, Obfuscation via node mixing has security advantages over normal
bitcoin transaction. For example, all Bitcoin transactions are transparent. For Fantasy Gold, if a
bad actor gained control over 50% of the operating Masternodes they would still have less
than 0.5% chance of de­anonymizing a single transaction that was mixed with 8 rounds of
Obfuscation (Kiraly 2017b). This important feature provides a high­level of anonymity and
security for FG users that elect to obfuscate their transactions.

SwiftTX
Masternodes like simple nodes are authoritative in nature but using SwiftTX provides
Mastnernodes with the ability to lock and consensus transactions. When a transaction is
submitted to the network, a group of Masternodes will validate the transaction. If those
Masternodes reach consensus on the transaction’s validity it will be locked for later
introduction into the blockchain, greatly increasing transaction speed compared to
conventional systems (like Bitcoin’s 10 minute block times with multiple confirmations).
SwiftTX makes it possible for multiple transactions to take place before a block on the network
is mined with the same inputs. This system is based on Dash’s InstantSend. (Kiraly 2017a).

Sporks
The Fantasy Gold network employs the multi­phased fork mechanism known as “sporking”.
This will enable the FG network to implement new features while minimizing the chances of
an unintended network fork during rollout. Spork changes are deployable via the network and
can be turned on and off as necessary without requiring node software updates (strophy 2017). This feature is extremely useful and allows the network to react quickly to security
vulnerabilities.

TOR & IPV6 Masternodes
Fantasy Gold user will be able to run their Masternode from either an onion address or an
IPV6 address. With TOR Masternode support, Masternodes can be run as a TOR hidden
service. This allows users to operate Masternodes out of their home network without revealing
their home IP, location or the dangers of potential attacks or compromise.

Community Importance and the Governance System
The Fantasy Gold community is the most important factor behind the long­term success of the
project, and their ability to meaningfully influence the future of the coin is paramount. As
such, at the end of the PoW phase we intend to activate budget superblocks on the network.
These superblocks, paid monthly, will enable the community to exert meaningful control over
all aspects of Fantasy Gold’s development, brand presence, and community affairs. Delaying
the activation of this system will give us time to develop the underlying framework necessary
for a positive user experience, and maximize block rewards available to miners and
Masternodes.
We will utilize a multi­phase process for creating and submitting proposals. Each step will
need to be fully completed. Failure to complete the steps outlined will likely result in a
proposal not being activated. A basic outline of these steps are as follows:
• Start in our Discord chat, and talk with some of the seasoned users. Gauge interest and if the
response is positive, move to the next phase.
• Utilize multiple social media platforms to discuss and get feedback. Remember that Fantasy
Gold has a a diverse userbase and differing levels of governance participation, reaching a
portion of the userbase will often require some footwork. Take note of these discussions and
be able to cite them in the formal pre­proposal. The more citations provided, the better.
• Be open to suggestions from the community and developers. Be flexible and willing to
incorporate external ideas and suggestions in your proposal.
• Create a formal pre­proposal on the Governance­>Pre­Proposal section of our website.
Provide citations for all discussions that occurred from the previous step. Treat your pre­
proposal as if it is what will be submitted to the blockchain for voting.
• Upon completion of these steps, you will submit your proposal to the blockchain. Be
prepared for two fees, one at the time of submission and a ballot fee paid to the developer that
activates your proposal on the blockchain. The submission fee is non­refundable, and the
balloting fee will only be paid upon approval and activation of your proposal.• Everyone is free to adjust their proposal to include the reimbursement cost of these two fees.
Please make sure in your formal proposal you state that you are adding reimbursement to the
stipend requested.
• Be sure to get back in touch with everyone you spoke with so your idea will be voted on. For
a proposal to be paid out, 10% of the eligible Masternodes must vote ‘yes’ on your proposal.
This process of getting a 10% consensus can be much harder than it sounds, so be diligent,
informative, and respectful in procuring the votes necessary for your proposal to be paid.

SeeSaw PoS/Masternode Rewards
We have decided to utilize the SeeSaw reward system popularized by PIVX (jakiman 2017).
The SeeSaw reward system begins with a 9:1 block reward ratio (favoring Masternodes), and
smoothly adjusts the ratio of reward between staking and node operators until around 41.5%
of coins in circulation are locked into Masternodes, at which time staking rewards reach a
slight advantage over Masternode rewards on a coin­by­coin basis. The reason we have the
SeeSaw slightly favoring staking rewards is because we want to avoid the problems ­ like
significant price volatility and low liquidity ­ that impact coins with very­high percentages of
their circulating supply locked in nodes. This strategy will mitigate user frustration over access
to coin supply and maintains the relevance of our robust network. With one of our goals being
a well­supported platform for anonymous commerce, transact­ability is of the utmost
importance to those accepting Fantasy Gold and those holding Fantasy Gold.

 

References
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https://131002.net/blake/blake.pdf.
Bertoni, G., Daemen, J., Peeters, M. & Van Assche, G., 2012. The keccak sha­3 submission.
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