[DAO Discussion] Invest in Constellation Network ($DAG)


Website: https://constellationnetwork.io/

Whitepaper: constellation_whitepaper_v0.1.pdf - Google Drive

Provide a High Level Overview:

• Layer zero (L0) network
• Interoperability between all possible blockchains and legacy applications
• Horizontally scalable with theoretically infinite bandwidth (TPS)
• State Channels which are Smart Contracts 2.0
- State Channels have all the advantages of conventional Smart Contracts, but do not suffer from the limitations of the base protocol (tokenomics or scalability)
• Near feeless network (1/100.000.000 DAG per transaction if you go over the rate limit, below it is free)
• Big partnerships with Department of Defense (DoD)

What do we do?

Constellation provides a smart contract platform based on a near feeless network which features interoperability with all data sources and horizontal scalability.

Why Constellation?

• Constellation is an American public company and works with the DoD
• New technology: Layer 0-network based on DAG (Directed Acyclic Graph)
• Different infrastructure / architecture compared to most existing DLT solutions
• Perfect for microtransactions due to the low fees and high scalability
• State Channels (Smart Contracts 2.0)
• Interoperability
• Flight program (incubation program) which helps adoption

About us

Constellation is a decentralized network that was created in 2018 and has meanwhile launched its Mainnet 2.0 in September 2022 and will soon offer Smart Contracts in the form of State Channels.

What’s next?

• In the short and medium term, it is about network development with regards to interoperability and State Channels
• Prepare for further cooperation with the DoD
• Setting up State Channels with various projects

Provide Low Levels Details:

• If this proposal is passed, Wonderland will purchase $5M worth of $DAG tokens
• It takes 250.000 $DAG to run a Soft Node or Validator Node
• Rewards previously amounted to 2500 $DAG per month per node (12% APY), it will likely increase to 4000 $DAG (19,2% APY)
• Rewards from the nodes are distributed monthly

It would be nice if Wonderland would become part of the Constellation community and help keep the Hypergraph network secure by running validator nodes.

Greetings from

Criptix and SchwerWieBeton

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seems good if they get the Department of defense contracts


What is your affiliation/role with the proposed project?
The website indicates there is already 120 nodes how many nodes do you plan on having? The price to entry for nodes seems low and potentially could be many.
Is it safe to assume you are prepared to offer a discount of CMV on purchase of tokens?

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Personally, I’m just a community member at Constellation, just like at Wonderland. I wrote the proposal together with Criptix. He is an employee of Constellation.
Since the launch of Mainnet 2.0 there have been 207 validator nodes. You can find more information about this on the following website dagexplorer.io. Technically, an infinite number of validator nodes can be added. There is no hard limit!
Compared to other systems, a Constellation node is very cheap. This is mainly due to the excellent scalability. No hardware requirements are necessary to achieve more scalability. If scalability is required, the validator nodes are simply added.
We cannot quickly answer whether there is a token discount. That would be a governance decision.

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I guess my questions would be is there a big picture scenario here ? Or is it more to be seen as a simple investment ?

At current prices investing $5mm would make Wonderland around 290 nodes which means would would own the majority of the nodes based on your numbers (seems like the website says 300+). Obviously this would change over time and with adoption, but it is still a considerable position to take in.

While the APY you mentioned could be nice, would doubling the amount of nodes crash the return for everyone ?

Now even if that is the case, DAG price action could compensate. Could you provide some information on things that are coming/being worked on that makes DAG a solid investment (in your opinion) ?


Hello! Thanks for your proposal. Infinite nodes means the token price is likely to be extremely volatile, and likely to trend down much like Strongblock and Thor have done. What plans are there, if any to change to a fixed validator node amount?


I would definitely go for it. I’ve been following Constellation for quite some time now, and this would be one of the investments I would feel more comfortable with as a Wonderland early investor. Generative economics is a really exciting concept.

I’ve got one question though: why the $5M figure? Could you elaborate a bit on that?


I think that by investing at least $5 million in Constellation, Wonderland will position itself very well in the aspiring company. With $5 million, Wonderland would own the most DAG nodes (around 290) and also receive the largest share of rewards. As the value of DAG increases, Wonderland would generate millions of dollars a month. The current market situation and the early phase of Constellation allows us to get in at a low cost. Anything under $5 million is inefficient in my opinion, especially given that Constellation has the potential to become one of the most influential companies out there. An alternative to the investment amount mentioned in the proposal would be 10 million dollars, but I think that’s too large a percentage compared to the treasury. However, if Wonderland members would like to make a $10 million investment in Constellation, then that would be an option too.

290 nodes is an insane amount of nodes. Who would operate, monitor and maintain them?

There are several ways to manage the nodes. On the one hand, Constellation can take over the management of the nodes, on the other hand, Wonderland also has the option of operating the nodes.

Technically there is no limit, but the network only allows a little more than 300 nodes at the moment. The possible number of nodes will then be increased over the next few months. In the long term, the DAG nodes will be staked in the State Channels so that they have more bandwidth. The DAG nodes have utility for the entire system. Since the DAG nodes are essential for the state channels, a trend increase for the system can be expected.

Many companies are already applying to build State Channels on Constellation’s Hypergraph. Once Constellation gains prominence and spotlight, we can expect an even greater increase in state channels, which will rather trend up than trend down.

The number 300+ stands for the currently allowed number of DAG nodes. This will increase over time. With around 290 nodes, Wonderland would have the most nodes and would accordingly receive a very high proportion of rewards. This would benefit Wonderlands Treasury significantly.

You are correct in assuming that node rewards decrease as the number of nodes increases. At the same time, the price of DAG will increase and thus compensates for the decreasing rewards.

Constellation is working on several things at once. I think it would be too much to go into this here in the forum. I would suggest introducing or answering these topics in a presentation or AMA.
I think investing in Constellation is a solid investment as they are the first company to enable Layer 0. The value proposition is an almost fee-less smart contract platform, which is interoperable with all data sources (legacy databases or DLT). That’s why Constellation also has partnerships with Quant, Link (DLT) and DoD, Kinami (Legacy).
Another point is that DAG is not only needed for mainnet validators, but later also for state channels. Each State Channel will then have its own reward system for DAG Stakers. This supports the success of DAG nodes in my opinion.

Constellation wants to wait 2-3 months for some additional technical capability to unlock, before Criptix and I putting this proposal up for a vote. Thanks for your understanding.

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Proposal closed as per OP. A new one will be done as required.