Dorsium Whitepaper

Accessible blockchain mining for everyone

Version: 0.4.0 (Beta) Date: January 2026

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Dorsium makes cryptocurrency mining accessible through smartphones. Instead of expensive hardware, users validate transactions on their phones and earn rewards for their work.

How it works:

• Pre-Mainnet (now): Users earn dPOINT (reward points) for validation work
• Post-Mainnet (Q1 2027): dPOINT converts 1:1 to DORS utility tokens

DORS is a utility token for network access, not an investment. Users earn by working, not by holding.

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1. Vision & Mission
2. Problem Statement
3. Solution Overview
4. Architecture
5. Pre-Mainnet Trust Model
6. Tokenomics
7. Security Framework
8. Governance Model
9. Economic Model
10. Banking Infrastructure
11. Roadmap
12. Legal & Compliance
13. Project History
14. Risk Factors Summary
15. Conclusion
16. Appendices
17. Version History

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© 2025-2026 Dorsium. All rights reserved.

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Vision

Anyone with a smartphone can earn cryptocurrency by validating transactions. No expensive hardware, no large capital needed.

Mission

Dorsium makes cryptocurrency mining accessible to everyone. Users mine on their phones without special equipment. All rewards are publicly verifiable. Earnings are based on work, not wealth. Energy usage is minimal compared to traditional mining. Tokens provide real network utility, not just speculative value.

Our Approach

We prioritize contribution over capital—users earn by participating, not by investing large sums. Working technology comes before marketing hype. After mainnet launch, users control the network through community governance. All operations follow EU MiCA regulatory framework. We build for long-term sustainability, not quick profit.

Pre-Mainnet Note

Users currently earn dPOINT (reward points), which convert 1:1 to DORS tokens at mainnet launch (2027).

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Current blockchain systems have four barriers preventing mainstream participation.

Mining is inaccessible. Bitcoin requires specialized ASIC hardware costing thousands of dollars. Ethereum demands 32 ETH minimum stake—over €80,000. Bitcoin alone consumes approximately 150 TWh annually, comparable to Argentina's total energy usage. Only wealthy individuals or corporations can participate profitably.

Wealth concentrates at the top. Early participants received higher rewards before halvings. Proof-of-stake systems favor large holders since more stake means proportionally more rewards. The rich get richer while newcomers face steep barriers.

Technical complexity excludes most users. Running nodes requires Linux and networking expertise. Wallet management involves seed phrases, gas fees, and significant risk of permanent loss from user errors. Non-technical users are effectively excluded from direct participation.

Speculation dominates over utility. Most tokens have no practical use beyond exchange trading. Users earn tokens with nothing meaningful to spend them on, resulting in price volatility without fundamental value drivers.

Dorsium's Goal: Blockchain participation as simple as a mobile app—rewarding work instead of wealth, with real utility from day one.

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Dorsium solves the four blockchain barriers through practical design.

Mobile accessibility. Users mine directly from iOS or Android devices without special hardware. Validation is lightweight, focusing on cryptographic signatures with minimal battery usage. Mining runs in 24-hour sessions with 2–3 daily activity checks. Anyone with a smartphone can participate.

Fair distribution. Rewards are work-based—users earn by validating transactions, not by holding capital. The base mining rate decreases as the network grows through adaptive halving. Vesting releases 80% of rewards over 18 months. Referral bonuses cap at 2x maximum, preventing pyramid dynamics. Late participants compete fairly with early adopters.

User-friendly design. The mobile app provides guided setup for non-technical users. Pre-mainnet uses a simple account system; post-mainnet transitions to self-custody wallets where users control their own keys. Non-technical users can participate safely throughout both phases.

Real utility. DORS is required for all transaction fees and network operations. Governance proposals require 1,000 DORS to submit. Premium dApp features and services require DORS payment. Token demand ties directly to network usage, not speculation.

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Hierarchical Delegated Consensus (HDC)

HDC distributes validation across three tiers. Mobile miners verify transaction signatures. Nodes perform light validation, block assembly, and relay. Validators run full Tendermint BFT consensus for block finalization.

Security comes from identity verification, not capital requirements. KYC verification applies at each tier. Hardware purchases create audit trails. Every tier requires 2/3 consensus for decisions. Attacking the network costs €53,890+ in hardware plus prohibitive KYC bypass—comparable to much larger networks.

See Architecture for technical details.

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Pre-Mainnet vs Post-Mainnet

The current pre-mainnet phase rewards users with dPOINT (non-transferable points) through a centralized database under founder-led governance. Post-mainnet (Q1 2027), dPOINT converts 1:1 to DORS tokens on a decentralized blockchain with DAO community governance.

Centralized bootstrap enables self-funding through hardware sales without VC investors demanding returns. The community owns the project from day one.

See Pre-Mainnet Trust Model for migration details.

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System Overview

Dorsium implements a three-tier network balancing accessibility, security, and scalability. Mobile miners perform transaction validation and feed verified transactions to nodes. Nodes handle block assembly and relay transactions across the network. Validators (100–300 active) run full Tendermint BFT consensus and store the blockchain. Archive nodes (10–50) maintain complete historical data for auditing and analysis.

All communication uses encrypted tunnels with TLS 1.3.

Network Connection

No technical setup is required for participation. Fixed IP addresses and port forwarding are unnecessary. Cosmos SDK handles automatic peer discovery. Optional relay servers assist with NAT traversal for users behind restrictive networks.

Relay servers only route encrypted messages—they cannot validate transactions, participate in consensus, or control nodes. If all relays fail, the network continues via direct peer-to-peer connections.

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Network Participants

Mobile miners perform lightweight transaction validation from smartphones. They verify Ed25519 and Secp256k1 signatures, check transaction format and sender balances, relay valid transactions to nodes, and respond to 2–3 daily Proof-of-Activity challenges. Any smartphone from 2015 onward with 2GB RAM and 100MB storage can participate, using approximately 10MB bandwidth daily with less than 2% battery drain per hour. Miners must maintain 95% uptime (23 hours daily) and complete KYC verification. Rewards are 2.72 DORS per day (1x multiplier), earned as dPOINT pre-mainnet, with 20% immediate and 80% vested over 18 months.

Terminology note: Unlike Proof-of-Work mining which requires computational hash power, Dorsium "mobile mining" performs cryptographic signature verification and transaction validation. We use "mining" terminology for accessibility, but the technical mechanism is validation work, not hash computation.

Nodes handle light validation, block assembly, and transaction relay. They require a 4-core CPU, 8GB RAM, 500GB SSD, 24/7 operation, stable internet, and KYC plus video verification. Rewards are 8.16 DORS per day (3x multiplier). Pre-configured hardware is available at dorsium.com/hardware.

Validators run full consensus and secure the blockchain. They require a 4-core CPU, 16GB RAM, 1TB NVMe SSD, 24/7 operation, high-speed internet, and KYC plus video verification. Rewards are 16.32 DORS per day (6x multiplier). Pre-configured hardware is available at dorsium.com/hardware.

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KYC Requirements

All participants complete basic KYC through government ID and selfie verification via an EU-compliant provider. Mobile miners must pass a 20-question knowledge test (70% required) before their first token withdrawal. Node and validator operators complete the knowledge test during onboarding and participate in a live video call with Dorsium staff before hardware purchase approval.

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Security Model

Security comes from identity verification, not capital requirements. Controlling 34% of mobile miners would require KYC verification for over 3,400 separate identities—prohibitively expensive and legally risky. Controlling 34% of nodes costs approximately €21,590 in hardware plus KYC bypass. Controlling 34% of validators costs approximately €32,300 plus KYC bypass.

Each tier operates independently with 2/3 consensus requirements. Compromising one tier does not compromise others. See Security Framework for detailed threat analysis.

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Automated Infrastructure

Node Sentinels serve as backup validators, activating automatically if primary nodes go offline. Archive Nodes store complete historical data for network transparency. Mint Guardian handles PAL credential validation. All automated systems are planned for mainnet launch.

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Pre-Mainnet System

The current off-chain system provides full transparency through a public explorer at dorsium.com/off-chain-explorer. Every transaction includes a SHA-256 audit trail. Reward calculations use deterministic formulas that anyone can verify.

All balances migrate to on-chain at mainnet launch. See Pre-Mainnet Trust Model for migration details.

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Bootstrap Philosophy

Dorsium operates a centralized system during pre-mainnet by design. This enables community building and development without venture capital, preserving the project's decentralized future.

Centralized bootstrap today. Decentralized mainnet tomorrow.

Current System

Operator: Dorsium OÜ (Estonian company), founded by Grávuj Miklós Henrich.

The pre-mainnet system runs on deterministic backend scripts with a PostgreSQL database. All reward calculations use open-source formulas, publicly verifiable through our off-chain explorer at dorsium.com/off-chain-explorer.

Every transaction is logged with a SHA-256 hash, timestamp, addresses, and the calculation formula used. Users can audit their own transactions and verify calculations against published formulas. Daily backups with 7-day retention ensure data integrity.

What Dorsium controls: Database writes, reward distributions, referral calculations, and mining rate adjustments (all following whitepaper formulas).

What Dorsium cannot control: User private keys, token distribution percentages, reward formulas, and future governance rights. These are either user-controlled or locked in this whitepaper.

Genesis Migration

The transition from off-chain to on-chain happens in three network phases:

Alpha Network (December 2025 – Q2 2026) operates with centralized off-chain backup. Beta Network (Q2–Q3 2026) introduces decentralized testnet blockchain. Mainnet (2027) launches the production blockchain with full decentralization.

Conversion contingency: dPOINT is intended to convert 1:1 to DORS upon mainnet launch (targeted 2027). However, if technical failures, regulatory changes, or operational issues prevent mainnet launch, dPOINT may not convert, or the conversion ratio may be adjusted through community governance vote. dPOINT has no monetary value pre-mainnet and is not refundable. Users participate in pre-mainnet at their own risk.

The migration protocol executes over 16 days. Mining freezes 7 days before mainnet launch, during which a final snapshot captures all balances and transaction history. The snapshot is exported with SHA-256 verification and published for 7-day community verification. On day 8, the genesis block initializes with all user addresses and balances. A 7-day dispute window allows users to report discrepancies with audit trail evidence. On day 16, the genesis block finalizes and mainnet launches.

Users verify their balances by downloading the snapshot CSV, confirming the SHA-256 hash matches, and checking their address against off-chain explorer records. A web-based verification tool will be available before migration.

Migration Verification

The genesis migration undergoes three independent verification layers:

Technical audit: External security firm verifies the migration smart contract and snapshot generation code before execution.

Financial reconciliation: An independent accountant reconciles total dPOINT issued against documented mining activity, hardware sales, and PAL purchases. Any discrepancy exceeding 0.01% triggers migration delay until resolved.

Community verification: The 7-day verification window includes published tools for users to independently verify their balances against off-chain explorer records.

All three verifications must pass before genesis block finalization. Audit reports are published publicly.

Trust Assumptions

During pre-mainnet, users trust that Dorsium OÜ maintains accurate records, performs reliable backups, follows published formulas, and executes migration as described.

We mitigate these risks through public audit trails, open-source formulas, and third-party security audit before migration.

Post-Mainnet Transition

After mainnet launch, trust shifts from Dorsium OÜ to on-chain smart contracts, validator consensus, and DAO governance. The off-chain system becomes a permanent read-only archive.

Founder tokens are subject to 10-year vesting with 12-month cliff and 2-year non-tradeable period, ensuring long-term alignment beyond migration.

DAO governance activates gradually: parameter adjustments only during the first 6–12 months, then full protocol upgrade control from year 2 onward. Dorsium OÜ transitions to a service provider role with no special governance privileges.

Why This Approach?

We considered three alternatives. Waiting for mainnet before any activity would mean no community, no early adopters, and a cold launch. Raising venture capital would introduce investor control and profit-driven pressure. Running an ICO would create regulatory complexity and securities classification risk.

Bootstrap with off-chain rewards lets us build community first, distribute tokens fairly through work, fund development sustainably, and maintain MiCA compliance as a utility token rather than a security.

This is a bootstrap phase, not the final state. Decentralization is the destination, not the starting point.

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DORS Token

DORS is a utility token providing access to network services, governance, and the dApp ecosystem. It is not an investment product and carries no profit-sharing rights.

Total Supply: 40 billion DORS (fixed, never increased) Blockchain: Dorsium Chain (Cosmos SDK with Tendermint BFT) Block Time: 5 seconds with instant finality

The 40 billion supply is calibrated for three practical requirements. First, mining reward granularity—at 2.72 DORS daily base rate over 15+ years of emission, smaller supplies would require impractical decimal places. Second, transaction fee flexibility—micropayments across different economies need sufficient denomination range without excessive decimals. Third, governance accessibility—the 1,000 DORS proposal threshold remains achievable for individual participants rather than only wealthy holders.

The supply is fixed at genesis and cannot be increased. Deflationary pressure from 50% fee burns reduces circulating supply over time.

Token Distribution

Total Supply: 40,000,000,000 DORS

┌─ Network Validation Reward (50%): 20,000,000,000 DORS
│   └─ Distributed through mobile, node, and validator mining over 15–20+ years via halving-adjusted emission.
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├─ Ecosystem Development (20%): 8,000,000,000 DORS
│   └─ dApps, partnerships, and developer grants
│   └─ 4-year vesting with 1-year cliff
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├─ Team & Advisors (10%): 4,000,000,000 DORS
│   ├─ Founder Allocation: 400,000,000 DORS (1% of total)
│   │   ├─ 10-year linear vesting with 12-month cliff
│   │   └─ First 2 years: non-tradeable period
│   ├─ Future Co-Founder Reserve: 400,000,000 DORS (1%)
│   │   ├─ Reserved for technical co-founder (actively recruiting)
│   │   ├─ If unfilled by mainnet: transfers to Treasury
│   │   └─ Same vesting terms as Founder if allocated
│   └─ Team & Advisors: 3,200,000,000 DORS
│       ├─ 3-year vesting schedule
│       ├─ Allocated based on contribution and milestones
│       └─ Unallocated portion controlled by DAO post-Phase 2
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├─ Treasury (10%): 4,000,000,000 DORS
│   └─ Controlled by DAO after governance launch
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├─ Initial Distribution (5%): 2,000,000,000 DORS
│   └─ Potential uses: Ecosystem development, marketing, and operational costs
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└─ Reserve (5%): 2,000,000,000 DORS
    └─ Emergency fund, burns, and future needs

Co-Founder Reserve: 400,000,000 DORS is reserved for a technical or crypto lawyer co-founder. Dorsium is actively recruiting for this role. If no co-founder joins by mainnet launch, this allocation transfers to the DAO Treasury. This ensures transparency—the reserve exists for a specific purpose, not as hidden founder allocation.

Team & Advisors Pool: Allocated incrementally as team members and advisors join. Unallocated tokens remain locked until DAO governance activates, at which point the community controls further distribution. Current allocations are published in quarterly transparency reports.

Mining Rewards

Mobile Miners earn rewards based on actual contribution:

• Base availability: 1.0 DORS/day for maintaining 95%+ uptime
• Proof-of-Activity completion: 0.5 DORS per challenge (2-3 daily, ~1.0 DORS average)
• Validation bonus: Up to 0.72 DORS/day based on network activity

Typical daily earning: ~2.72 DORS (1x multiplier)

This structure ensures rewards correlate directly with contribution while maintaining predictable earning potential for planning purposes.

Nodes earn ~8.16 DORS/day (3x multiplier): base mobile rewards plus 5.44 DORS for infrastructure operation (hardware, bandwidth, 24/7 uptime).

Validators earn ~16.32 DORS/day (6x multiplier): base mobile rewards plus 13.60 DORS for infrastructure operation and consensus participation.

Infrastructure rewards compensate real operational costs: electricity, bandwidth, hardware wear, and continuous availability requirements. This structure aligns with work compensation frameworks, not investment returns.

Pre-mainnet rewards are earned as dPOINT (non-transferable points), converting 1:1 to DORS at mainnet launch.

Referral System

Community growth is rewarded through a capped referral multiplier. The first referral adds +0.15x, referrals 2–5 add +0.10x each, referrals 6–10 add +0.07x each, referrals 11–20 add +0.05x each, and referrals 21–50 add +0.02x each.

Maximum bonus: +2.0x (hard cap). This declining structure with a fixed ceiling prevents pyramid dynamics. Mining works with zero referrals—referrals are a bonus, not the primary income. Users must actively mine to earn; referrals alone generate nothing.

Referral impact demonstration: Example calculation over 30 days of active mining: Without referrals = 81.6 DORS earned (2.72 daily × 30 days). With 10 referrals (1.62x multiplier) = 132.2 DORS earned. The referral bonus contributes an additional 50.6 DORS tokens. This demonstrates that the base mining work (81.6 DORS) remains the primary income source, while referrals provide a secondary bonus for community education efforts. Referrals compensate community building work, not passive recruitment.

Community Onboarding Reward

Verified educators receive 500, 400, or 250 DORS for successfully onboarding new users who complete KYC and 30 days of active mining. This compensates technical support work, not passive recruitment.

Halving Schedule

Mining rewards decrease as the network grows, ensuring long-term scarcity.

User-based triggers: First halving at 100,000 active miners (2.72 → 1.36 DORS/day), second at 500,000 miners, third at 2 million, fourth at 5 million, fifth at 10 million miners.

Active miner definition: A miner counts as active if they completed at least 20 proof-of-activity challenges in the preceding 30 days and maintain a unique KYC-verified identity. This metric is published daily on the network dashboard and independently verifiable through the off-chain explorer.

Time-based fallback: If user targets aren't met, halvings trigger at 2, 4, 6, 8, and 10 years from mainnet respectively.

Supply-based emergency: 15 billion DORS mined triggers immediate halving regardless of user count. Mining ends at 19.5 billion DORS (0.5B reserved for emergencies).

The first trigger reached (user, time, or supply) activates halving. A real-time dashboard will show current miners, DORS mined, and days until next trigger.

Vesting

Vesting prevents market instability and ensures long-term commitment.

Mining rewards: 20% immediate, 80% vested over 18 months with 1-month cliff. PAL rewards: 100% vested over 30 months with 6-month cliff. Team/Advisors: 100% vested over 36 months with 12-month cliff. Community Onboarding: 100% immediate (compensates completed work).

Vesting rationale: Mining rewards structure combines immediate compensation (20%) for work performed with deferred compensation (80% over 18 months) to prevent market instability during bootstrap phase. While Bitcoin and Ethereum provide immediate block rewards, Dorsium prioritizes ecosystem stability through controlled token release. This is a deliberate trade-off—early-stage network health over immediate liquidity—designed to prevent supply shocks that could undermine utility token value.

Token Utility

DORS provides access to network services—holding tokens without using them generates no benefits.

Network Operations: All transactions require DORS for fees. Smart contract execution and data storage are paid in DORS. This is non-optional for network access.

Governance: Submitting proposals requires 1,000 DORS. Voting power is based on token holdings combined with activity and role bonuses.

dApp Ecosystem: Premium features and in-app purchases use DORS. Developers receive revenue sharing in DORS.

Deflationary Mechanisms: 50% of transaction fees are permanently burned. Additional burns may be approved through governance votes.

Value Dynamics

Token demand derives from utility requirements, not speculation. Network growth increases transaction volume, which increases fee burns, reducing circulating supply. Hardware accessories and premium features are purchasable only with DORS, creating direct utility demand independent of speculation.

Year 1 liquid supply is approximately 400 million DORS (1% of total) due to vesting schedules. This controlled release prevents sudden supply shocks while the ecosystem develops organic demand through actual usage.

DORS is designed for network utility. Any market value derives from adoption and usage, not from promises of returns.

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Identity-Based Security

Dorsium secures the network through verified identity rather than capital requirements. Every participant undergoes KYC verification, making large-scale attacks prohibitively expensive and legally traceable.

Mobile miners complete government ID verification with selfie confirmation through an EU-compliant KYC provider, plus a knowledge test (70% passing score) before token withdrawal. One account per verified identity is enforced.

Node and Validator operators complete all mobile requirements plus a live video call with Dorsium staff and payment verification through bank transfer to Dorsium OÜ. Hardware serial numbers are registered and tracked.

This approach makes creating fake accounts at scale economically irrational. Attacking 34% of mobile miners would require thousands of verified government IDs with criminal liability for identity fraud. Node and validator attacks require significant hardware costs plus KYC bypass, creating both financial and legal barriers.

Privacy trade-off: KYC requirements trade user privacy for network accessibility and regulatory compliance. This design prioritizes Sybil resistance and MiCA alignment over anonymity. Users who prioritize privacy should use established pseudonymous blockchains like Bitcoin or Monero. Dorsium's identity-based model targets mainstream adoption where regulatory compliance is essential for long-term viability.

KYC Provider Independence

Dorsium uses third-party EU-compliant KYC providers rather than processing identity verification internally. This separation ensures Dorsium cannot selectively approve or reject users based on non-compliance factors.

KYC data is stored by the provider under GDPR requirements, not on Dorsium infrastructure. Dorsium receives only verification status (approved/rejected) and a pseudonymous identifier—not identity documents or personal data.

Provider selection criteria include EU regulatory compliance, GDPR certification, and data breach insurance. Provider details are published in transparency reports. If the current provider fails, migration to an alternative provider follows within 90 days without affecting user mining status.

Users banned for fraud or terms violation may appeal through a documented process. KYC rejection by the provider (identity verification failure) is separate from Dorsium platform bans (behavior violation).

Multi-Layer Protection

Mobile layer uses cross-device validation, activity verification, and biometric confirmation during onboarding.

Node layer operates with TLS 1.3 encrypted communication, DDoS protection via CloudFlare, geographic distribution requirements, and redundant validation paths.

Validator layer requires 2/3 BFT consensus for block finalization, implements penalty mechanisms for misbehavior, and uses multi-signature wallets for treasury operations.

Each tier operates independently. Compromising one layer does not compromise others.

Hardware Security

Nodes and Validators ship with pre-configured security: secure boot, encrypted storage (LUKS/BitLocker), firewall rules, SSH key authentication (no passwords), and automatic security updates. Physical security remains the owner's responsibility.

Users maintain custody through software wallets with BIP39 mnemonic backup. Hardware wallet integration is not supported.

Anti-Fraud Systems

Proof-of-Activity challenges users 2–3 times per 24-hour mining session with a 30-second response window. Device integrity verification prevents emulation.

Behavioral analysis flags suspicious patterns including impractical uptime (100% for extended periods), static GPS coordinates, automated response timing, and multiple account correlation from the same device or IP range.

Progressive penalties escalate from 24-hour suspension with warning, to 7-day suspension with 50% multiplier reduction, to permanent account termination. Users may appeal through Discord or Telegram with evidence review by the Core Team (Phase 1) or Advisory Board (Phase 2+). False positives result in penalty reversal.

Ban evasion is detected through KYC identity matching and device fingerprinting. Evaders receive immediate permanent bans with referral chain review.

Cryptographic Standards

Dorsium uses Ed25519 for digital signatures (Cosmos SDK native) with Secp256k1 available for Ethereum compatibility. SHA-256 handles all hashing operations. Both provide 128-bit equivalent security, considered secure through 2030+.

Private keys are stored in mobile secure enclaves (iOS Keychain, Android Keystore) with BIP39 mnemonic backup. Treasury wallets use multi-signature configurations.

The modular architecture allows cryptographic upgrades through governance when industry consensus on post-quantum standards emerges. Current algorithms align with Bitcoin and Ethereum security standards.

Security Audits

Before mainnet launch, Dorsium will complete external security audit (Certik or Halborn), penetration testing, and load testing at 10x expected capacity.

Bug Bounty Program launches Q1–Q2 2026 with ongoing rewards for responsible disclosure. Submissions go through GitHub Issues or private email for critical vulnerabilities. Rewards range from 500 DORS for low-severity issues to 10,000 DORS for critical vulnerabilities like consensus bypass or private key exposure.

Excluded from bounty: social engineering, physical security, third-party vulnerabilities, and known documented issues.

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Progressive Governance

Dorsium governance evolves through three phases based on measurable milestones, not arbitrary dates.

Phase 1: Foundation-Led (now through Q3 2027) has the founder and core team making operational decisions with community voting on strategic matters through Google Forms and Discord. This phase exists because bootstrap requires fast decisions and the community is still small. Transition to Phase 2 requires mainnet launch, 1,000+ active miners, 100+ hardware owners, and 6 months of post-mainnet stability.

Phase 2: Hybrid Governance (Q3 2027 through Q4 2029) introduces a 5–7 member Advisory Board elected by token-weighted vote. The founder proposes, the Board approves with 3/5 votes, and the community votes on strategic decisions through an on-chain platform. Treasury operates as 3-of-5 multisig (2 Board + 1 Founder + 2 Validators). Transition to Phase 3 requires 10,000+ miners, 500+ hardware owners, 50+ governance proposals submitted, and 24–30 months of stable Phase 2 operations.

Phase 3: Full DAO (2029 onward) transfers all control to the community. A DAO-controlled legal entity (Estonian OÜ or Swiss Foundation) replaces founder leadership. The founder becomes a regular community member with no special privileges. All decisions happen through on-chain token-weighted voting with 10% quorum requirement. The Board manages legal compliance but cannot override DAO votes.

Why Progressive Decentralization?

Dorsium launches centralized and decentralizes progressively. This is intentional, not a compromise.

Premature decentralization has killed projects. The DAO hack and early governance attacks demonstrate what happens when communities gain control before developing expertise. Small communities lack the experience for complex protocol decisions. Bootstrap funding requires operational flexibility that DAOs cannot provide. Regulatory compliance under MiCA demands clear accountability, which diffuse governance structures cannot offer during early stages.

We commit to published milestone triggers rather than arbitrary dates. The community can accelerate the timeline by exceeding growth targets. Founder tokens remain locked for 2 years and vest over 10, ensuring long-term alignment. Quarterly transparency reports provide full financial disclosure, and the Community Watchdog Program enables independent oversight from day one.

We do not promise fixed decentralization dates—milestones matter more than calendar entries. We do not promise immediate DAO control—this must be earned through demonstrated community maturity and sustained engagement.

This approach prioritizes sustainable decentralization over performative decentralization. Building genuine community governance takes time; rushing it risks the project's future.

Milestone Adjustments

If growth is slower or faster than expected, any holder with 10,000+ DORS can propose milestone adjustments. Changes require 75% approval with 10% quorum. The founder reports progress in quarterly transparency reports. Milestone-based transitions matter more than fixed dates.

Voting Power

Dorsium prevents plutocracy through balanced voting that rewards participation, not just holdings.

Voting Power = √(DORS allocated) + Role Bonus + Activity Score + PAL Bonus

Square root on token holdings means 1 million DORS does not equal 1 million votes—it equals 1,000 votes. This gives smaller holders proportionally more influence while still recognizing larger stakeholders.

Role bonuses reward network commitment: Mobile miners receive +10 votes, Node owners +30 votes, and Validator owners +60 votes. Activity scores accumulate from months of active mining and governance participation. PAL credential holders receive permanent voting bonuses recognizing early support.

KYC verification is mandatory for governance participation to prevent Sybil attacks. DORS allocated to votes remain locked until the voting period ends, ensuring genuine commitment.

Proposal Process

Submitting a governance proposal requires 1,000 DORS, sent to treasury upon submission. Proposals passing with over 50% approval receive full refunds. Proposals failing but receiving over 25% approval receive 50% refunds. Spam proposals under 25% approval forfeit the fee.

The voting cycle runs 24 days total: 3 days for spam review, 7 days for community discussion, and 14 days for voting. Phase 2 requires 5% quorum; Phase 3 requires 10% quorum.

Transparency

Quarterly reports cover development progress, financial overview (aggregated hardware sales and costs), community growth metrics, and upcoming governance decisions. The founder's 400 million DORS (1% of supply) vests over 10 years with 12-month cliff and 2-year non-tradeable period, ensuring long-term alignment.

Quarterly Q&A sessions allow direct community questions to the founder.

DAO Timeline Risk

The 5-year path to full DAO assumes predictable growth, stable operations, and maturing community engagement. If milestones are not met, the timeline extends. The community votes on adjustments rather than forcing premature transitions.

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Revenue Streams

Dorsium funds development through community participation, not external investors.

Current (Pre-Mainnet): Hardware sales fund development directly. Nodes sell for €635 and Validators for €950 (January 2026 prices). All hardware is assembled and shipped by the Dorsium team with KYC compliance and quality control. As of November 2025, 35 early adopters have contributed through hardware purchases, representing the initial bootstrap phase. Growth accelerates through Alpha Network launch (December 2025), public hardware campaigns (Q1 2026), and mobile app availability (Q2 2026). Phase 1 → Phase 2 governance transition requires 1,000+ miners, achievable through mobile accessibility lowering participation barriers.

Post-Mainnet (2027+): Transaction fees become the primary revenue source. dApp ecosystem fees, PAL marketplace commissions, and enterprise services (private chain deployment) provide additional revenue streams. Hardware sales continue as secondary revenue, eventually shifting to third-party manufacturers.

Bootstrap Philosophy

Dorsium intentionally avoids venture capital to preserve community ownership. Hardware sales fund development without external investors demanding returns. The community will own the project after mainnet launch through DAO governance; pre-mainnet operates under founder leadership with community advisory input. Decisions are made for users, not investors.

This approach means slower development compared to VC-funded projects, but ensures sustainable growth without burn rate pressure or exit-focused timelines. No tokens are allocated to outside investors—0% goes to VCs.

Supply and Demand

Supply control operates through user-dependent halving, a hard cap at 40 billion DORS, 50% fee burns creating deflationary pressure, and vesting schedules ensuring controlled release.

Demand drivers include mandatory transaction fees for network operations, governance participation rights, dApp ecosystem integration, and DORS-only payment for hardware accessories and premium features.

Hardware Pricing Rationale

Hardware prices reflect manufacturing, assembly, shipping, and support costs—not future token earning potential. Prices may change based on supplier costs, shipping rates, and market conditions.

Hardware purchases are one-time transactions for physical equipment. Mining rewards are separate compensation for ongoing network contribution. Dorsium makes no projections about token value or return on hardware investment.

Users who already own compatible hardware may self-configure nodes without purchasing from Dorsium, earning identical rewards. Hardware purchase is a convenience option, not a requirement for participation.

Sustainability Timeline

2025–2026: Hardware sales fund development. Target is 50+ hardware units sold by testnet launch.

2026–2027: Kickstarter style campaign for ecosystem expansion. Mainnet transaction fees begin generating revenue. dApp ecosystem activates.

2027 onward: Self-sustaining through transaction fees. DAO treasury funds development. Community controls priorities through governance.

Risk Acknowledgment

Pre-mainnet risks include development speed limited by hardware sales revenue, no financial safety net if sales decline, and founder-dependent operations. These are mitigated through conservative timelines, quality-focused development, early community building, and Estonian OÜ legal structure.

Funding contingency: Pre-mainnet development speed depends on hardware sales. If sales decline below sustainable threshold (fewer than 10 units per quarter), development may pause until funding recovers through alternative sources (community crowdfunding, ecosystem grants, or deferred salaries). No refunds for dPOINT are provided if project delays occur due to funding constraints. Users assume this risk when participating in pre-mainnet phase.

Post-mainnet, transaction fees replace hardware revenue, DAO treasury provides ongoing funding, and community governance controls development priorities.

Economic Security

The multi-layer security model protects against economic attacks through KYC-based Sybil resistance, vesting schedules preventing token dumps, and three-tier consensus preventing majority attacks. See Security Framework and Appendices for detailed threat analysis.

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Dorsium is establishing banking relationships for hardware payment processing and regulatory compliance within the EU.

Hardware purchases are processed through EUR bank transfers to Dorsium OÜ. All Node and Validator buyers complete full KYC/AML identity verification as detailed in the Security Framework. Operations align with MiCA regulatory requirements.

Timeline: Banking partner selection and integration runs Q4 2025 through Q1 2026. Automated payment processing for hardware sales launches Q1–Q2 2026. Additional payment options may follow in Q3 2026, subject to payment processor partnerships.

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Completed

Q1 2025 – Idea: Research and planning phase.

Q2 2025 – Foundation: Private validator and node campaigns, website launch, registration and referral infrastructure.

Q3 2025 – Launch Preparation: Public hardware campaigns, mining protocol v1 finalized, deterministic backend scripts, auditable off-chain explorer.

In Progress

Q4 2025 – Alpha Network Launch: PAL credential system, mobile app alpha release, hardware onboarding, Kickstarter preparation (contingent on OÜ formation). Alpha Network launches December 31, 2025.

Planned

Q1 2026 – Alpha Network Operations: Node Sentinel activation, first governance poll, Mint Guardian release.

Q2 2026 – Infrastructure Upgrades: Dorsium Lux unveiled, Archive Engine launch, liquidity sandbox (test environment), DAO governance portal alpha.

Q3 2026 – Beta Network Launch: Decentralized testnet deployment, migration from Alpha Network, mobile mining improvements.

Q4 2026 – Beta Network Operations: PAL reward claim dashboard, token utility rollout, Developer API and SDK release, first public dApps.

Q1 2027 – Mainnet Launch: Production blockchain deployment, genesis migration protocol execution, full decentralization achieved.

Q2 2027 – Post-Launch: Validator reputation system, ecosystem grants program, DEX strategy decision.

Q3 2027 onward: Roadmap determined by DAO governance. Community proposals drive priorities.

Network Phases

Alpha Network (December 2025 – Q2 2026) operates blockchain-based mining with centralized database backup. Mobile miners begin transaction validation with public audit trails.

Beta Network (Q4 2026) launches the decentralized testnet. Full validator network testing and smart contract deployment occur here.

Mainnet (Q1 2027) is the production blockchain with full decentralization and DAO governance activation.

Milestone Triggers

Network health milestones trigger protocol events:

100,000 active miners triggers the first halving (or 2 years from mainnet, whichever comes first). 100+ active validators enables enhanced security features. 10+ dApps indicates healthy ecosystem growth.

Target metrics by end of 2026: 100+ validators, 10+ dApp integrations, 100,000+ active miners.

These are adoption metrics measuring utility demand, not price predictions.

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MiCA Classification

DORS is a utility token under EU Markets in Crypto-Assets Regulation (MiCA Article 3(1)(5)). It provides digital access to network services and is not a security, investment product, or asset-referenced token.

Pre-mainnet classification: The current pre-mainnet phase operates as a centralized points program, not a blockchain service. dPOINT has no monetary value and is not transferable. MiCA utility token classification applies POST-MAINNET only, when DORS tokens provide actual network access on the production blockchain.

Utility characteristics: DORS is required for transaction fees, smart contract execution, data storage, dApp services, and governance participation. The token has no profit-sharing mechanism, generates no passive income, and cannot be staked for returns. Value derives solely from network usage demand.

What DORS is not: Not a security (no equity, dividends, or investment contract). Not asset-referenced (not backed by fiat, commodities, or other crypto-assets). Fails the Howey Test for securities classification.

Mining as Work Compensation

Mining rewards compensate active network contribution through three components:

1. Computational resource sharing - users' devices perform cryptographic signature verification and transaction validation automatically
2. Availability commitment - maintaining 95% uptime (23 hours daily) ensures network reliability
3. Active participation - completing daily proof-of-activity challenges and passing knowledge assessments

All three components are required for full rewards. Availability without active participation earns only the base rate; proof-of-activity challenges unlock the full reward potential. This ensures rewards correlate with genuine contribution rather than passive device operation.

The referral system compensates community education and support work with a fixed +2.0x maximum cap. Mining works without referrals; referrals are optional bonuses, not primary income. This structure prevents pyramid dynamics while rewarding genuine community building.

Hardware and Token Separation

Hardware sales and mining rewards are legally and economically distinct:

• Hardware sale: One-time purchase of physical equipment at market-based pricing
• Mining rewards: Ongoing compensation for network contribution work

No bundle pricing exists—hardware costs reflect equipment value only. Users may operate self-sourced hardware with identical mining rewards, demonstrating that hardware purchase is not a prerequisite for token earning potential.

Founder compensation structure: Hardware sales compensate immediate development work and infrastructure costs during bootstrap phase. Founder token allocation (1% of total supply) compensates long-term project leadership and trademark development. These are separate compensation streams with different vesting schedules—hardware revenue is immediate operational funding, while tokens vest over 10 years with 2-year non-tradeable period.

Corporate Structure

Current: Romanian PFA (Authorized Natural Person) for bootstrap hardware distribution.

Planned: Estonian OÜ formation Q4 2025 or Q1 2026, providing EU legal framework for operations.

Future: DAO-controlled entity (Estonian OÜ or Foundation) from 2029 onward, with elected board managing legal compliance under community governance.

Intellectual Property

The Dorsium trademark is registered with EUIPO (EU Trademark Office), currently held by founder Grávuj Miklós Henrich. Until DAO transfer, the founder grants Dorsium OÜ an exclusive operating license.

Upon Phase 3 DAO activation, the Dorsium trademark transfers to the DAO-controlled entity through a structured process designed to prevent conflicts of interest.

Valuation methodology: Three independent valuation firms provide assessments. The median value becomes the transfer price. Firms are selected by the Advisory Board (not the founder) from a pre-approved list of EU-licensed intellectual property valuators.

Founder recusal: The founder cannot vote on valuation firm selection or transfer price approval. The founder's 1% token holding is excluded from quorum calculation for trademark-related votes.

Payment terms: The DAO treasury funds the purchase. If treasury funds are insufficient, payment may be structured over 24 months with no interest. The trademark transfers upon first payment; remaining payments are unsecured obligations.

Cap provision: Transfer price cannot exceed 2% of DAO treasury value at the time of transfer, ensuring the trademark purchase does not deplete community resources.

This structure ensures founder compensation for trademark development while guaranteeing community ownership long-term. The binding commitment is documented before OÜ formation and publicly disclosed before testnet launch.

Data Protection

Dorsium complies with GDPR requirements. Data collection is minimal, user consent is required, and encryption protects all stored information.

KYC data is retained for 2 years from last mining activity, then automatically deleted unless legal disputes are active. Users may request early deletion subject to regulatory audit requirements. Fraud prevention data (device IDs, banned account hashes) is retained for 10 years under GDPR Article 6(1)(f) legitimate interest. No data is shared with third parties except the KYC verification provider.

Risk Disclosure

DORS tokens are not investments. They provide network utility, not financial returns. Token value may fluctuate based on utility demand. No exchange listings or liquidity are guaranteed.

Regulatory risk exists. Cryptocurrency regulations may change. Users are responsible for local legal compliance and tax obligations in their jurisdictions.

Technical risks apply. Blockchain technology carries inherent risks including potential bugs, attacks, or failures. Smart contract risks exist post-mainnet.

No profit is promised. Mining compensates work, not investment. Market forces determine token exchangeability.

Legal Review

Independent legal opinion from an EU-licensed crypto law firm is scheduled for Q4 2026 before mainnet launch. Quarterly compliance reviews ensure continued MiCA alignment as regulations evolve.

All disputes are subject to Estonian law under Dorsium OÜ jurisdiction.

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This whitepaper does not constitute investment, financial, or tax advice. Numerical examples illustrate utility reward rates only; actual token value is determined by market forces based on utility demand.

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Dorsium development began Q1 2025 with research into accessible mining and the Hierarchical Delegated Consensus mechanism. Private hardware campaigns launched Q2 2025, attracting 35 early adopters. Public campaigns, the off-chain explorer, and deterministic backend scripts followed in Q3 2025.

Alpha Network launches December 31, 2025, with Beta Network planned for Q3 2026 and Mainnet for Q1 2027. See Roadmap for detailed timeline.

Key Innovations

Hierarchical Delegated Consensus (HDC) distributes validation across three tiers—mobile miners, nodes, and validators—with minimal energy consumption compared to proof-of-work systems.

Pre-Mainnet Reward System uses deterministic off-chain calculations with SHA-256 audit trails, enabling transparent community building before blockchain launch.

Mobile-First Mining allows smartphone-based transaction validation without specialized hardware, making participation accessible to anyone with a modern phone.

Core Philosophy

Dorsium addresses three blockchain barriers: high participation costs, energy-intensive consensus, and lack of real token utility. The project prioritizes accessibility and fairness over pure technical metrics, enabling blockchain participation for everyone rather than just the technically savvy or wealthy.

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Technical Risks

HDC consensus is untested at scale. Alpha Network validates the mechanism Q4 2025, with full testnet in Q3 2026. Partition recovery assumes reliable VPS infrastructure. Smart contract bugs remain possible despite mitigation through external security audit before mainnet.

Operational Risks

Pre-mainnet operations depend on the founder, transitioning to Advisory Board governance Q3 2027 and full DAO by Q4 2029. Hardware sales are centralized as a trade-off for KYC compliance and quality control.

Regulatory Risks

MiCA regulation may evolve; Dorsium commits to ongoing legal review and adaptation. Country-specific cryptocurrency restrictions are unpredictable. KYC requirements may tighten, monitored by the compliance team.

Market Risks

No exchange listings are promised—market development occurs organically. Community growth may be slower than projected.

Economic Risks

Token utility demand depends on dApp ecosystem growth and remains uncertain. Bootstrap funding relies on hardware sales and PAL credentials without VC safety net. Halving timing is unpredictable as it depends on user adoption milestones.

Mitigation

Quarterly transparency reports maintain accountability. External security audits complete before mainnet launch (Q4 2026). Governance transitions follow community-controlled milestones. Legal counsel engagement begins Q4 2026.

Independent financial reconciliation completes before migration, verifying all pre-mainnet balances against documented activity.

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Dorsium makes blockchain participation accessible through mobile mining, three-tier HDC architecture, and transparent governance. With 35 early adopters onboard and mainnet launching Q1 2027, we are building infrastructure for mainstream blockchain adoption.

Technical innovations—deterministic backend scripts, hierarchical consensus, and identity-based security—ensure scalability without sacrificing decentralization. The 40 billion DORS supply with vesting mechanisms and adaptive halving creates sustainable economics for long-term growth.

Whether as miner, node operator, validator, or developer, your participation shapes Dorsium's future. We build toward 100,000 miners, a thriving dApp ecosystem, and full DAO governance by 2029.

Building accessible blockchain for everyone.

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A. Technical Specifications

Blockchain Parameters

Transaction Identification

Transaction IDs are generated using SHA-256 hash of sender address, receiver address, amount, token symbol, timestamp, and nonce. The resulting TXID is a 64-character hexadecimal string. Timestamp plus nonce ensures collision prevention with O(1) lookup via primary index.

Consensus Parameters

All tiers (mobile miners, nodes, validators) require 67% consensus (2/3 majority) for transaction and block validation. Byzantine Fault Tolerance allows up to 33% malicious actors per tier without compromising network integrity.

Timeout settings: Propose 3 seconds, Prevote 1 second, Precommit 1 second, Commit immediate.

B. Contact

Website: dorsium.com Email: hello@dorsium.com

C. Glossary

D. References

1. Cosmos SDK Documentation
2. CometBFT Consensus Papers
3. EU MiCA Regulatory Framework
4. Byzantine Generals Problem (Lamport, 1982)

E. Threat Model

KYC requirements, video verification, and three-tier consensus make attack costs comparable to much larger networks despite lower hardware requirements.

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Beta Versions

Beta versions reflect pre-mainnet development. The whitepaper evolves based on testnet results and community feedback. Technical specifications may change as Alpha and Beta Networks operate. All changes are publicly tracked.

Official Release

Version 1.0.0 releases after Beta Network operates successfully, independent legal review confirms MiCA compliance, and 30-day community review completes. All technical claims will be validated through testnet data.

Post-1.0.0 Updates

Updates follow semantic versioning. Major versions (X.0.0) require DAO approval with 75% vote and 10% quorum. Minor versions (1.X.0) require Advisory Board approval. Patch versions (1.0.X) require Core Team approval. All changes are publicly announced with detailed changelog.

Transparency Commitment

Beta status reflects honesty about project stage—we are building, not finished. Community feedback shapes this document. Legal certification requires operational proof, which Beta Network provides before official release.