When we started the Divi Project in early 2017, we weren’t exactly sure how it would take shape. We knew that it needed to be user-friendly, thus our “Crypto Made Easy” mantra, but it has taken over two years of deep thought, coupled with watching the entire crypto space fail in so many ways, to realize what’s necessary to make this work. Some critical points we believe are:
- Crypto adoption is going to take longer than anyone wants to believe.
- Adoption will not happen the way anyone in the industry is pursuing it now.
- Fiat currencies aren’t going away anytime soon, so a hybrid approach is necessary.
- Fees for exchange, swap, and transactions of all currencies will soon be zero, and we need to plan for that.
- Whoever builds a payments platform with all these considerations could be the biggest company in the world.
Building a cryptocurrency ecosystem is more complicated than other types of businesses. Is it even a business? What part is decentralized and what isn’t? How do you balance all the stakeholders, and where do we strive to create value? All cryptocurrency teams struggle with these issues, and many come to different strategies. What we’ve done here at Divi is to create three distinct entities, each with a different function, but striving towards the same goal of creating as many users and use cases as we can for the DIVI cryptocurrency. Currently, the three teams are overlapping somewhat, and are growing more separate as the Divi ecosystem develops.
Divi’s Coin and Blockchain
The DIVI cryptocurrency is what we’ve all grown to love. The reality is that the value of our brand, technology, and community is only very loosely associated with our market cap shown on Coinmarketcap.com, and one which the teams have no control of.
We started out as “The Divi Project” and now we’re dropping the world “Project” from our brand since we feel we’ve outgrown it, and want to focus on a simple and memorable name.
Divi, with the red color, will continue to represent our DIVI cryptocurrency itself, the blockchain, and our community of DIVI holders who will control its fate through voting rights within our governance system.
Divi is a DAO, a Decentralized Autonomous Organization, meant to span national borders, to be accessible to anyone in the world, and to be unstoppable and eternal code.
The elements that Divi controls are:
- The Divi brand and trademarks
- Divi’s protocol/blockchain
- Masternodes (Divi’s second layer network)
- Community (Telegram and Divi Crew)
- Governance system
- Block rewards treasury allocation (16% of block rewards)
- Charity (1% of block rewards)
To maintain and continue to develop the Divi blockchain protocol and protect the Divi brand, we have created a non-profit foundation, called “The Divi Project Foundation”, registered in the country of Panama. It’s our intention for our future governance system to be able to elect the directors of the foundation, who will be the Divi community’s leaders, tasked with maintaining and growing the Divi protocol, brand, and ecosystem. These directors will control budgets, taken from the Divi protocol’s block rewards, and apply them within their sphere of influence, allocating them to companies and individuals doing the required work.
As of the writing of this article, the Governance code is only partially developed, but our protcol is open source github and the majority of owners of the coins can control its fate by choosing, every day, to maintain the current protocol and keep the teams working, using our block rewards. At this time, that is 16% of the total block rewards, adding up to around 8.3 million DIVI per month.
The Divi Foundation has hired various firms to help it maintain the protocol and build software for it. These include or included Qbito Technologies, Divi Labs SRL, Encketech, Divi Ventures, and others, plus many individuals who have performed various services.
Divi’s for-profit entity, Divi Labs
Located in Costa Rica, Divi Labs is a for-profit company. It was set up to build apps for the Divi blockchain such as our wallets and other tools. It's also able to perform various functions that are difficult for a decentralized organization or non-profit foundation to achieve. For example, a for-profit company allows us to compete more directly with fiat-based companies, or to partner with them. And very importantly, it's able to raise money from outside investors to support the Divi ecosystem, beyond what the block rewards can do.
Div Labs is funded by Divi’s founders, Geoff and Nick, a few members of the Divi community, and outside investors, who own its shares. It will also own a few Diamond Masternodes worth of DIVI. It’s currently hired by the Divi Foundation to build Divi’s apps that run on top of the blockchain. Generally known as a wallet, these apps will later become a Payments Platform with an SDK that allows individuals and companies to build “One-click-add-ons” that are installed within the Divi app, the way internet browsers such as Chrome or Firefox allow add-ons. The platform will connect many cryptocurrencies together using the Divi blockchain, as well as fiat bank accounts, and many types of user data, all in a user-friendly way.
Divi Labs will perform functions such as:
- Build Divi’s Wallets and Payment Platform apps
- Build one-click-add-ons for the platform
- Build Divi’s third layer network, its Chain Lightning™ off-chain scaling solution
- Promote the Divi brand and ecosystem with marketing and PR
Although Divi Labs is currently the only entity we know that’s building dedicated wallets for Divi, it doesn’t necessarily need to be. We welcome others to build platforms or wallets that will bring new users and use cases to Divi.
Divi Labs uses the Divi brand under license from the Divi Foundation, but it’s not an exclusive right. Any company or individual who is able to demonstrate a great idea to add value to Divi’s ecosystem, and a need to use the brand, could be allowed to do so with permission from the foundation.
Ridivi: Divi’s Fintech Arm
Divi Labs, with part of its funding, has purchased 30% of a Costa Rica Fintech, also known as an e-bank. Rebranded as Ridivi, it will become a core part of the Divi ecosystem.
Ridivi comes with over 10,000 customers for their remittances business, and an office in a busy part of San Jose, the capital of Costa Rica. We are in the process of opening five more offices.
The founders of Ridivi are two brothers from Costa Rica who have been building their company for two years. Their strategy was to use the latest technology, while providing superior customer service, to undercut and outcompete Western Union and other remittance companies. This is almost a US$700 billion market! Their clean, minimal offices are designed to be replicated by the thousands around the world, wherever there's a need for remittances.
Our strategy is that we will outcompete the banks and remittances companies, beating them at their own game in a profitable way. We will gradually move to a crypto-only system with DIVI. We believe that the fees will gradually trend towards zero, and remittances as a business will disappear. Our offices around the world will slowly transition to offer other services that are more crypto-based, or whatever else is needed as financial services worldwide are transformed by changing technology.
Why else is this so great for Divi?
Because Divi Labs has purchased a “controlling share” of this e-bank, we are legally allowed to exchange KYC/AML data between the two entities, in accordance with the latest FATF regulations. This will allow us to seamlessly integrate fiat and crypto into applications and exchange between the two in the background with no friction for users. As far as we know, we are the only cryptocurrency company that can do this because all others are working with partners who don’t own both entities.
The addition of Ridivi to the Divi ecosystem will allow us to do the following:
- One-click fiat account set up within the Divi Apps (USD, EURO, CRC)
- One-click exchanges between fiat and cryptos
- Debit cards for our users
- Provide IBAN accounts for the crypto community
- Wire transfers of fiat around the world with our apps
- Direct integration with European banks using open banking standards
- Use of vaulted DIVI to partially reimburse fees for our users, as a way to encourage them to enter Divi’s crypto economy.
As we build Ridivi, we’ll be adding thousands of new customers, who we can gradually educate on the benefits of DIVI. Remittance customers tend to be lower-income and have lower educational levels.
Cryptocurrency experts have predicted that mass adoption will happen first in developing countries, where smartphone banking is the only bank option for over a billion people. Low-income populations also stand to gain the most when we reduce or remove fees from money transactions. Divi’s focus on an easy-to-use cryptocurrency is perfect for these clients. With these factors in mind, we believe that Divi is now better positioned than any other cryptocurrency to become the world’s favorite for payments.
Read much more about Ridivi on our blog here: Ridivi