Q&A with Dentacoin Founders and Team: May 2020
We have always been eager to keep you up to date with everything happening at Dentacoin.
Now – on top of our daily, weekly, and monthly updates – we are launching a Q&A session with Founders and Team. Since April 26 we have been collecting anonymous questions and now it’s time to answer them!
Before we start, let us take a moment to thank you for the great support along the way!
“You are doing great with the development.”
“I am a proud supporter of Dentacoin from the start and what a true pleasure it has been witnessing amazing advances.”
“Keep the great work and I would like to see the founder in a live interview.”
“I have very high hope on the Dentacoin.”
Those were just some of the amazing comments we received in the Q&A form. Your trust and contribution drive our devotion even further every day! Please be sure that we are tirelessly working to bring Dentacoin to yours and our own high expectations!
Now let’s go to the questions, shall we? The first set of questions was answered during a video call by:
- Prof. Dimitar Dimitrakiev – Founder of Dentacoin Foundation
- Jeremias Grenzebach – Co-Founder & Core Developer
- Donika Kraeva – Marketing Manager
Expect more team members to participate in the next Q&A sessions!
Important notes: The original spelling of questions is kept as much as possible and is only corrected wherever needed to make the questions easily understandable by all people. The answers are written primarily to help the article reach more people interested in the same matters (search engine optimization). Live and recorded video Q&A will be additionally considered.
Jump into the category of interest:
SUPPLY & COIN BURN
Q: Are there plans for more coinburns later this year? / Do you plan to burn supply? / Any plan to burn off some of the DCN total supply?
Prof. Dimitrakiev: Yes, annual coin burn sessions are possible in order to eliminate the unlocked but unused DCN tokens in the scope of the year. Petar wrote a very useful article on the topic Cryptocurrency Supply & Adoption I’d recommend everyone to read:
“Should more than necessary tokens be unlocked which are also not likely to be utilized in the following period, a portion of these tokens can be burned in order to minimize the effects of inflation. This approach is aimed at protecting holders’ interests by preventing overinflation, while at the same time allowing enough tokens to remain in circulation and enable user participation within the ecosystem.”
Q: According to businessinsider.com: the currency in circulation from all over the world, tracked by the Bank for International Settlements, totals about $5 trillion. DCN has 8 trillion DCN that are assumed to cover the globe. This needs to be reevaluated since it might be overlooked. Your comment? / Can some modification be done in order to adopt the crypto market in general and reduce Total and Circulating supply by at least 80%?
Prof. Dimitrakiev: To begin with, there are a few factual gaps I would like to clarify. The quoted amount of $5 trillion is from the year of 2017 and does not include broad money (i.e. non-physical money which can be transacted digitally and thus used as money). A newer report from January 2020 calculates $37 trillion in circulation: this includes all the physical money (notes and coins) and the money deposited in savings and checking accounts. If you add on top the broad money, the amount rises to over $90.4 trillion. Money in the form of investments, derivatives, and cryptocurrencies exceeds $1.2 quadrillion.
Moreover, comparing decimalized currencies with a non-decimalized currency as Dentacoin is not correct – those must be firstly weighted. For example, the total supply units of Bitcoin are 200 times more than the total supply units of Dentacoin, while those of Ether exceed 13 trillion TIMES the entire, ever-to-exist supply of Dentacoin:
Dentacoin’s total supply is calculated considering the broad, global coverage planned. Why broad? Due to the real-world purpose of Dentacoin, its target group has a much bigger size than most of the Blockchain-based projects and it consists of more than 600 Mio users (patients and dentists) in the long run. Tokens are needed to serve all developed and planned tools, as well as product/ service payments within the network. Moreover, approximately 70% of Dentacoin’s total supply is locked in hard-coded, TimeLock contracts (verifiable here) and will be released gradually over the next 22 years and beyond. Thus, it is practically non-existent, non-accessible by anyone before its date comes. Further coin burn actions are planned to eliminate the excessive amount each year.
Q: Do you think that now, seeing the current fall of DCN price, people will invest in this project? / Dentacoin plan till 2042 is good, investors are sitting at 100x loss. What about that? / Where do you see the price of DCN by the end of 2020?
Donika Kraeva: As I have stated the Foundation’s position on the topic multiple times, let me do it again here. We have always restrained ourselves from making price predictions. This is unserious, totally unprofessional, and will not be done just to bring some positive vibes. The only thing we can promise is that we will surely work very hard to bring Dentacoin to its best potential from a product and adoption point of view. Everything else will be hot air which all our team members try to avoid at all costs since the very beginning.
We do understand the current frustration coming from this part of the community, which is mainly focused on trading. This, however, does not seem to impact the larger part of the community that believes in the long-term value Dentacoin is aimed to bring to dental care globally. The latter has even increased in size and buying power in the last two months.
The real price reflects exactly the developments made in terms of innovative payment systems and dental software solutions focused on improving oral health. The trading price is expected to do the same in the long run BUT it takes additional market factors into account, which after the Cryptopia hack have not been to our benefit. However, we do not ignore traders’ feedback and constantly try different approaches to help the market reflect the true development of the project (the intrinsic value) as it did before the Cryptopia hack. We have allocated much more efforts to ensure a healthy trading environment in the upcoming weeks and months for the ones who care mainly about it. This will also allow us to focus even more on what brings the fundamental value of this Foundation: products and user network.
Q: What is Dentacoin’s updated projected fundamental price and value of Dentacoin per user to reflect appropriate growth?
Jeremias Grenzebach: The fundamental value estimate in the whitepaper is made on the basics of a conservative business planning approach, Discounted Cash Flow (DCF), and the very standard user-based valuation, typical for digital companies. As it has been calculated considering the long-term target market size (25 years), there are no further evaluations needed as of now. Those could be considered in the fifth year of development in order to reflect on the achieved short-term (5 years) market share.
To further clarify the meaning behind the fundamental value, let me also share an extract from the whitepaper:
“The calculated fundamental value (real value) of the Foundation remains almost unchanged throughout the development of Dentacoin, since it is bound to the size of the community and the value per user within the community. The market value can undergo typical market fluctuations and depends mostly on the demand for DCN. Respectively the calculated fundamental price has no influence on the market price (trading price).”
SECURITY vs. UTILITY TOKENS
Q: Does Dentacoin come under security as the SEC has clarified that all tokens are securities?
Prof. Dimitrakiev: Dentacoin is NOT a security – a fact, confirmed in an official statement by the legally responsible assessing party, the Dutch Authority for the Financial Markets. The Netherlands has a very clear and strict regulatory framework. Thus, we are one of the few blockchain solution providers that possess a Government-issued statement in accordance with the European legislation that the Dentacoin (DCN) token does not classify as a security.
To additionally clarify the matter, SEC has not stated that all tokens are securities but that they may be. Extracts from their website:
“ICOs, based on specific facts, may be securities offerings.”
“Calling a token a “utility” token or structuring it to provide some utility does not prevent the token from being a security.”
Q: The company gets our money through ICO, so we are like shareholders. If there is a profit some of it must be given to the investors. But here it is not, why? / Why I cannot see the financial sheet of the company? Unless you want to say ICO is not like an IPO, then it is misleading the investors. Your comment?
Prof. Dimitrakiev: There is a clear definition of a shareholder in the world of finance: “Shareholder is an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.” – Investopedia. This has nothing to do with the possession of a utility token – be it Dentacoin or another utility token.
Extract from the Dentacoin ICO Terms & Conditions:
“Ownership of DCN carries no rights expressed or implied other than a limited right (license) to use the Dentacoin network (“Dentacoin Network”), if and to the extent the Dentacoin project has been successfully completed and launched. No Ownership, Revenue or Governance Rights: In particular, User understands and accepts that DCN does not represent or constitute any ownership right or stake, share or security or equivalent rights nor any right to receive future revenues, shares or any other form of participation or governance right in or relating to the Dentacoin project or the Dentacoin Foundation.”
Another important aspect to remember is the specific organizational structure Dentacoin has, namely a registered Foundation behind it. The Foundation operates solely and eternally following its statutes – a document that describes its mission and all possible activities towards achieving it including use of funds, distribution of tokens, etc. This document can never be altered and guarantees that no actions against the mission of the Foundation can be taken. There is an old interview on the topic here:
All publicly available official documents and financial statements can be accessed through the Netherlands’ Chamber of Commerce website.
EXCHANGES & BUYBACKS
Q: Any effort or plan to listing in Binance and Indodax? / When will DCN be added to more exchanges like WazirX and Binance? / Dentacoin listing on Binance – when? / Why is Dentacoin not listed in the World Top Ten Exchanges?
Prof. Dimitrakiev: I am constantly monitoring and contributing to these developments and I can assure you that initial communication in the form of application form submissions and/ or inquiries with the top exchanges is in place. Negotiations with at least five large exchanges have been further advancing in the last weeks. Please keep in mind that both we and the exchange platforms have internal assessment processes that need technical time. Sometimes the requirements of one of the sides are just not met. In most cases, though, time is the leading factor.
Further details are not subject to disclosure or they can result in blacklisting on most serious exchange platforms. For example, read here the Binance’s CEO listing tips, and please remember those next time when you ask about more specific updates on the topic.
Q: Would you launch your own exchange?
Jeremias Grenzebach: We do not have such plans as of now mainly due to significant regulations and risk of defocusing from the main project purpose. However, if in time this is estimated as needed in order to boost the adoption, it might be considered.
Q: Is the team thinking about any buyback plan?
Prof. Dimitrakiev: Buybacks are possible when the market conditions require it and when funds are not allocated for development – as explained in the whitepaper. Small buybacks may occasionally be implemented as part of the market-supporting activities as well.
Q: Is there any plan to migrate to Binance chain?
Jeremias Grenzebach: We have no plans to migrate from Ethereum as of now. The latest announcement claims that the new PoS (proof of stake) is planned to be launched latest by the end of 2020 and Sharding is another update in the pipeline. Both updates are expected to solve the scalability problems of the entire Ethereum network which will result in major optimizations for Dentacoin. Migrating might be taken into consideration only if there is another blockchain platform which has a comparable number of users and transactions.
Q: What new products will you launch?
Jeremias Grenzebach: The already existing products – DentaVox, Dentacoin Trusted Reviews, Dentacare app – are enjoying global interest and currently used by 100K+ users and 1.8K+ dental offices. Although they are fully operational, we are constantly updating them to serve the community better. As for new products, next on the roadmap are:
- Dentacare: Jaws of Battle (Official Release) – already launched for Android on May 1, upcoming iOS release by June 2020
- Dentacoin Assurance 1.0 (Public Mainnet – Official Release) – last tests carried out
- Dentacoin Assurance 2.0 (Testnet)
- Custom Dentacoin Hub app for Dentists (Official Release) – a ready version already tested by a partner clinic
- Dental Health Database (Alpha)
Another major milestone is the Dentacoin Foundation’s participation in the world’s largest dental summit IDS in March 2021.
Q: Is Dentacoin still projecting to meet short-term, mid-term and long-term goals as laid out in the whitepaper?
Prof. Dimitrakiev: As we are still half-way through the short-term period, it is early to consider modifications of the goals. The ones in the whitepaper are still valid.
Q: What is the long term plan of Dentacoin and what are its strategies?
Jeremias Grenzebach: The long-term development plan is described in detail in the whitepaper. To summarize: In 20 years we envision Dentacoin platform functioning as THE operating system for dental practices – blockchain-based, patient-centered, and prevention-oriented.
Q: Anything that I can help with from Mexico?
Donika Kraeva: Thank you for your self-initiative! No matter where you are located, there are a few things everyone can do in order to support the adoption of Dentacoin:
1) Add dentists in your area to Dentacoin Trusted Reviews.
Log into your profile, scroll down to the section “CAN’T FIND YOUR DENTIST?” and fill out the form. We will check all details, reward you for every real entry, and get in touch with the added dentist to explain more about Dentacoin. Start adding dentists here.
2) Invite your friends to use Dentacoin tools.
On top of getting rewarded for every new user acquired, you will help us reach more people. You can find your unique referral code and share it on your preferred social media directly in your Dentacoin Account. Log in to get it started.
3) Use Dentacoin tools regularly.
Take surveys on DentaVox, improve your oral hygiene with the Dentacare app, write insightful reviews to your dentist on Trusted Reviews, fight for your teeth with the new Dentacare: Jaws of Battle game… There are plenty of options for you to help us keep the daily active users at a high number and thus increase the value of the entire platform.
4) Support us on social media.
Like, share, comment on our posts on social media. Algorithms are becoming more and more dependent on the engagement of users.
Q: From where does Dentacoin earn revenue?
Prof. Dimitrakiev: The main source of revenue remains the initial crowdfunding rounds – ICO and Presale. Moreover, Dentacoin is the owner of a dental company, so part of its operating profit goes into the development process as well. Also, as stated in the whitepaper, a share of the Dentacoin (DCN) supply is saved for the Foundation’s needs, i.e. part of our capital is in DCN currency. When the currency value grows, so is our capital. In the future, we intend to monetize some of the more sophisticated features of the platform – for now all apps are free as we need the critical user base to help us develop usable, beneficial products.
Q: What needs to happen for Dentacoin to act as a Dental Support Organization and assist licensed dentists in the administrative aspect of their dental practices, especially in underserved communities that lack dental health resources?
Jeremias Grenzebach: In my opinion, Dental Support Organizations are gaining greater popularity in recent years for a reason. It gets harder and harder for solo practitioners and small practices not only to handle the administrative requirements alone, but also to order materials at competitive prices and to attract new and retain existing patients.
Even now we are actually already focused on the latter two aspects by incorporating DCN as a means of payment for dental services and materials (saving high international transaction costs) and by introducing smart apps serving as a digital loyalty program (at no cost to dentists). We additionally provide free dental marketing tips to practitioners and market research results to help them access valuable information which is usually not widely available. Therefore, enriching the scope of our services in direction DSO can be a future opportunity to explore. In order for this to happen, though, we need our planned digital infrastructure to be completely ready, along with all required certification, a larger workforce, health administration know-how, and more globally dispersed resources due to local differences.
Q: Did you manage to do the research or obtain any information about the Dentacoin holders? Their purpose, by that I mean the purpose of use (paying for dental services, buying products with Dentacoin, trading Dentacoin, long-term investments in crypto). Given what the long-term Dentacoin strategy is, I think these are important data for marketing and the business orientation of the company.
Donika Kraeva: We are regularly researching Dentacoin users’ behavior, their interactions with the currency and the applications. The last mass research was made at the beginning of 2020 and it showed that approximately 60% of all Dentacoin holders do not touch their DCN for long periods of time, meaning they either look at it a future oral health fund with the purpose of paying for dental services and products (this applies even stronger to patients who have received DCN through partner dental clinics) or intend to exchange it in future. The other 30% are interested in occasional trading, and 10% and daily/ weekly traders.
However, it is indeed a great idea to do research throughout Dentacoin holders, covering even more aspects. A new DentaVox survey might be on the way…
Q: Why is the Dentacoin team not organising workshops and seminars for the promotion of the Dentacoin objectives and blockchain technology?
Jeremias. Grenzebach: We rely primarily on digital channels to communicate our objectives and stay in touch with Dentacoin supporters. The most active channel in terms of daily talks between team and supporters is Telegram: https://t.me/dentacoin
However, we also participate in events but only carefully chosen ones. This is to avoid unnecessary efforts with no significant effects. Dentacoin representatives have joined both international blockchain conferences and the world’s leading dental summit (as the first-ever blockchain solution provider to ever participate there). In March 2021 we will be joining the International Dental Show in Cologne, Germany again.
A few reminders from previous events:
What do you think of today’s Q&A?
Make sure to like, share, and comment below so we know what else interests you and how to improve!
Also published on Medium.
Marketing Manager at Dentacoin Foundation - the organization behind the first and only blockchain solution for dentistry. She is experienced in online medical marketing and content writing, and has developed feedback systems and patient loyalty programs for international dental clinics.