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PRCY Coin Whitepaper

PRCY© Privacy Coin – As privacy is everybody’s business

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PRCY© Privacy Coin – As privacy is everybody’s business Whitepaper V 1.0 Team #PRCY

“If you put a key under the mat for the cops, a burglar can find it too. Criminals are using every technology tool at their disposal to hack into people’s accounts. If they know there’s a key hidden somewhere, they won’t stop until they find it.” (Tim Cook, CEO Apple Inc.) 1|P age PRCY© – Whitepaper V 1.0

Introduction “Privacy matters” is a known quote you will hear more and more often. However, is privacy really assured nowadays? This and more topics have driven us to start the Privacy Payment Project #PRCY. We believe everyone has his or her right on privacy, especially in the financial market. Moreover, we believe with the introduction of our wallet and payment system we can offer this to everyone who is ready to keep their data for themselves and only pass through the necessary data for the payments they do. In our first version of the whitepaper, we would like to take you with us in our idea of privacy, our aim to improve the current privacy issues, introduction of the team, the value of the crypto asset, the functionality of our product in a whole and how the community will be involved. “If you can’t share, you can’t multiply” – CEO PRCY 2|P age PRCY© – Whitepaper V 1.0

Table of Content Introduction .................................................................................................................................... 2 1. Purpose ....................................................................................................................................... 4 1.1 Who we are........................................................................................................................ 4 1.2 Challenges .......................................................................................................................... 4 1.3 Privacy Coins Are Unstoppable.......................................................................................... 5 1.4 The Use Cases For PRCY..................................................................................................... 6 2. Market and Industry ................................................................................................................... 8 2.1 Short Term ......................................................................................................................... 8 2.2 Long Term .......................................................................................................................... 8 2.3 Wrap PRCY/New Developments........................................................................................ 9 3. PRCY Coin Specification ............................................................................................................ 10 3.1 Detailed coin specification .............................................................................................. 10 4. PRCY TEAM ................................................................................................................................ 11 4.1 Founders .......................................................................................................................... 11 4.2 Team anonymity .............................................................................................................. 11 4.3 Central versus Decentral ................................................................................................. 12 5. PRCY Blockchain Features ......................................................................................................... 13 5.1 What Are PRCY Coins? ..................................................................................................... 13 5.2 How do PRCY Work? ........................................................................................................ 13 6. Important links ......................................................................................................................... 17 3|P age PRCY© – Whitepaper V 1.0

1. Purpose 1.1 Who we are PRCY Team feels very strongly about the community. PRCY is there for and with the community. Our goals are to deliver the project within the expectation of those who support the project. Privacy is what we are aiming on individual level, but also on Business level. PRCY has superior technology with the most advanced privacy features. PRCY is a fully anonymous staking coin and a payment system with a trustless governance structure. This is all based on the latest state of the art privacy technology (RingCT, Ring Signatures, Stealth Addresses, Bulletproof and more). Although the PRCY chain is 100% private, it allows a wide variety of passive income, staking, masternodes and Proof of Audit (PoA). PRCY does not offer partial anonymity like some other privacy coins, PRCY offers 100% absolute privacy without doubt, by means of offering the best of best privacy protocols which are successfully tested. PRCY offers PoA as the solution of trust which many other blockchain do not contain. PRCY does not rely on nodes or a group of administrators. The PRCY blockchain is a hybrid Proof of Stake (PoS) and PoA blocks. The PoS are minted every minute by staking nodes to verify the transactions in the blockchain. The PoA block are mined by PRCY miners (investors) with one task to audit the system if it is functioning according to the predetermined conditions. The PoA block will audit at least 59 PoS blocks for its correctness, each PoA auditor (miner) will be rewarded by auditing the blockchain system. 4|P age PRCY© – Whitepaper V 1.0

1.2 Challenges With the introduction of the General Data Protection Regulation (GDPR), the EU framework more and more people being aware with protection of private data. One of the main pain points we acknowledge with Bitcoin and Ethereum is everyone who knows your wallet address is able to see your holdings. In recent times, governments and regulators around the world have highlighted the utility value of Bitcoin and cryptocurrencies to criminals. For example, Treasury Secretary Steven Mnuchin recently said he wants to make sure that cryptocurrencies do not fall into the hands of “bad guys.” Their attention is expected to make cryptocurrencies transparent so that consumers and businesses are comfortable with using them. 1.3 Privacy Coins Are Unstoppable PRCY team and developers has started to use their knowledge to provide a Savings and Payment blockchain as Private as anyone can think of nowadays. Reached by using functionalities, which are able to block outsiders following, and sharing any information according to processes taking place on the PRCY blockchain. PRCY believes attempting to ban private cryptocurrencies would be nearly impossible for regulators due to the tokens’ privacy-preserving, decentralized nature. So that is why PRCY will state: privacy coins are unstoppable. Privacy coins work differently to cryptocurrencies like Bitcoin and Ethereum—payments are untraceable, helping users to maintain privacy. Where every Bitcoin transaction can easily be linked to a user’s address, PRCY uses an obfuscated public ledger to hide the details of each transaction. Highlighting the difficulties regulators are likely to face in halting privacy coins. CEO PRCY believes and shares a widely spread view and his idea. “If decentralized privacy cryptocurrencies become (more) popular in the near future, to the point they can be easily and routinely exchanged without investors having to convert to other currencies and systems, there is no obvious way for regulators to impose post-hoc regulation.” PRCY believes that authorities would benefit from adapting and preparing for the possibility of being unable to prevent the spread of privacy coins in the future. “What many regulators do not realize is those who control the code will control the rules. If you cannot share, you cannot multiply,” the CEO PRCY said. “So far, they have not accepted this and are in denial.” 5|P age PRCY© – Whitepaper V 1.0

To hear the philosophy of the CEO PRCY and his thoughts on how privacy coins will play a role in the future of the cryptocurrency landscape are the following: “PRCY believes it is possible that a lot of governments will try to outright ban any crypto that attempts to provide a level of privacy features above the current “status quo”. PRCY believes it will ensure that privacy-preserving currencies become the route for protest against the incumbent financial system. PRCY has a strong belief because privacy infractions and violations have become the mainstay of the financial system. The evolution or birth of crypto is the most simple answer to this. The CEO PRCY also pondered an alternative outcome in which governments are more accepting of private cryptocurrencies. He believes that relaxed regulations and a deeper understanding of the dangers of transparent coins like Bitcoin could lead to wider adoption of privacy coins, “much like how users are starting to realize the nefariousness of Big Tech companies like Facebook and Google.” In the past, much discussion has fallen on the role cryptocurrencies sometimes play in criminal activities such as money laundering and drug dealing, thanks in no small part to Bitcoin’s prominence on darknet marketplaces such as the Silk Road. While Bitcoin has in many ways been embraced as an asset class since Silk Road’s widely documented shutdown, private cryptocurrencies still represent a largely unknown area of the ecosystem. CEO PRCY “Regulators and compliance professions should soon realize that PRCY is not the only project that offers useful privacy features. Other ‘privacy coins’ offer intrinsic or opt-in privacy enhancements that they need to be prepared for. Even Bitcoin and Ethereum, which are widely-supported, are adopting new privacy enhancements. These technologies can no longer be ignored.” 1.4 The Use Cases For PRCY At first glance, the protocols and examples provided above might make it seem that criminal activities and actors are the primary use cases and users for privacy-focused coins. But when one considers current regulations for commercial transactions, utility of privacy features dramatically expands. A new class of coins, which bridge the gap between the anonymous world of cryptocurrencies and the real world of business applications and commercial transactions, has emerged to take advantage of this space. For example, XRP have included functionality that enables disclosing of transaction data and identity metrics to comply with regulatory agencies. 6|P age PRCY© – Whitepaper V 1.0

At some other privacy coins the PrivateSend feature is optional. This means it can be utilized for transactions that users of the cryptocurrency would like to keep hidden from the public blockchain. As an example, rent payments and salary information can be hidden from other users. CEO PRCY “Privacy is important for many practical reasons including user safety. “It is also a safety issue for users that could be targeted by criminals that become aware of a user’s holdings by tracing their transactions.” PRCY angel investor “Around the world, people will want money that is not accessible to others,” A well-known privacy coin is being tested by multiple US banks for this purpose. Another example Venezuela and Zimbabwe have reportedly witnessed a surge in the use of cryptocurrencies as their economies deteriorate. In fact, users in these countries are willing to pay a premium to own Bitcoin. Competitive pressures and market demand will likely push most cryptocurrency projects to adopt strong privacy primitives, adding that high-encryption techniques that enable masking of user and transaction identity will “likely be pervasive across future money. 7|P age PRCY© – Whitepaper V 1.0

2. Market and Industry 2.1 Short Term Short-term focus for PRCY will be on the development and functionality of the PRCY infrastructure. Starting to work on the accessibility to PRCY coin. In other words, make it possible to investors to provide the opportunity to own PRCY coins and to store PRCY coins in their own PRCY QT wallet. The functionality of storage of PRCY coins will be extended to a multi coin mobile wallet and a PRCY mobile wallet. PRCY will focus to expand the community and with a growing community the PRCY blockchain will be a secure blockchain by Proof of Work (PoW), Proof of Stake (PoS) and Proof of Audit (PoA). The PRCY blockchain is built for and on privacy and trust. Nowadays with open internet, social media, but also in cryptocurrency users are being exposed to cyber criminality more often. PRCY started this project as we believe that steps need to be taken to provide users being exposed to any type of criminality regarding their finance, whether this is their savings, payments or other transactions. To provide this trust, we have created a privacy network every user could rely on that it will bring back the control of their finance as they expect. 2.2 Long Term Long-Term focus for PRCY will be on Business-to-Customer (B2C) and after that Business-to- Business (B2B). The PRCY team foresees a big future for industrial acceptance of cryptocurrency in the near future. Many people have gone digital, the trend accelerates during the global pandemic. People are looking for solutions for their funds and hear, see and learn more about cryptocurrencies and become more aware of their privacy rights. Slowly but surely more and more people will invest in cryptocurrencies and will make use of privacy coins like PRCY. This will thrive PRCY to relevant partnerships and utilize the privacy settings of PRCY, and including the many passive income opportunities. 8|P age PRCY© – Whitepaper V 1.0

Just imagine large companies with billions of USD in savings and transactions. We can provide them a safe and private market. Being prepared for any unwanted observers and unwanted exposure to crime. 2.3 Wrap PRCY/New Developments Although the focus is to strengthen the PRCY blockchain and to expand in community. New developments in industry will be followed and are often great occasions to launch new products and stay ahead. Many popular crypto-exchanges are more and more focused to increase the accessibility to private blockchains by means of a new product in the form of Wrapped coins, a PRCY-backed token on Ethereum. PRCY examines the possibility to create a PRCY based token on Ethereum and being backed 1:1 by PRCY and secured by the exchange. Wrapped PRCY will be similar to other synthetic tokens like Wrapped Bitcoin [WBTC] or Wrapped Ethereum [WETH]. CEO PRCY “Wrapped PRCY brings greater liquidity to the Ethereum and DeFi ecosystem. It gives holders of PRCY more flexibility to utilize their tokens without having to sell it for Ethereum or stable coins, in order to access the many exciting opportunities in the DeFi space.” The crypto-based synthetic asset aims to provide users exposure to a variety of different assets without needing to hold the underlying asset. PRCY anticipates on market tendency and see many exchanges like Bittrex and Abra had delisted large other privacy coins, due to regulatory concerns. With WPRCY, users will be able to provide the necessary transparency. Wrapped PRCY will have the same transparency as other ERC-20 tokens in the Ethereum blockchain, thus ensuring necessary regulatory clearance concerning the transparency part of privacy coins. As part of PRCY philosophy of accessibility PRCY will make use of the present Defi solutions who will adopt ERC-20 tokens in the Ethereum blockchain and will make PRCY available via multi Decentralized Exchanges. Although Ethereum transparency instead of privacy, the investor have the ability to select the technology he prefers and accompanied the transparency of his wish. 9|P age PRCY© – Whitepaper V 1.0

3. PRCY Coin Specification 3.1 Detailed coin specification Here below you can find all specifications concerning PRCY, summarized in a table. Coin Ticker PRCY Initial Supply 60,000,000 PRCY Max Supply 60,000,000(Initial) + 10,000,000 (Emission) Proof-of-Audit Proof-of-Stake v3 Consensus Proof-of-Work Masternodes (See-Saw Rewards) 0.5 PRCY is reserved for the PoA miner that audits the block Emissions 1.0 PRCY is split between a staking node(that minted the block) and a Masternode Block Size Up to 2 MB Ring CT Ring Signatures Bulletproofs Key Technologies Stealth Addresses Stealth Transactions Proof of Audit 1,05 million PRCY per year until 10 million PRCY Approximate emissions emitted PRCY Masternodes are required  5,000 PRCY coins as collateral  Dedicated IP address  Run 24 hours (<1 hours connection loss) Masternodes are rewarded according the See-saw allocation for their contribution to the network. The reward is 1 PRCY. The PRCY masternode can be compared with the PIVX masternode system. Due to the See-Saw Balance reward system a fair reward to masternodes holders can be allocated. The PRCY chain is verified by PoA, Masternodes and PoS, this makes the PRCY chain very resistant to malicious attacks and ensures the chain is completely secure. 10 | P a g e PRCY© – Whitepaper V 1.0

4. PRCY TEAM 4.1 Founders Community members of former Privacy projects initiated the project in December 2020. Together with a group of developers, they started the PRCY project to have a decentralized environment from day 0. The founders are a group of people with different backgrounds with an excellent mix of skills. We have got blockchain technology developers, Entrepreneurs, knowing how to start and to run multiple enterprises, Business Developers focused on the architecture of financial solutions and angel investors bringing in wisdom of life. The project is funded by the owners and angel investors. PRCY believes in long term smart efficient investing, meaning each USD will be invested in the project for development or marketing purposes for the benefit of the community. The expansion of PRCY is key. PRCY will sell the minimum of PRCY coins to raise funding for this sole purpose, each quarter the PRCY team reports about the expenses and the number of coins sold. Trust is key, our actions are transparent and verifiable. 4.2 Team anonymity The PRCY Project is a community driven initiative with a varied source of contributors. It draws inspiration from Monero and other privacy projects that elected to go (partly) anonymous in line with the world’s most known token Bitcoin. This is done to protect the project and the team and its users to assist in ensuring it can be more decentralized from its outset. The focus should be on the project, its code and the community that drives it, these are transparent and verifiable. 11 | P a g e PRCY© – Whitepaper V 1.0

4.3 Central versus Decentral For the workspace is chosen to start decentral. Meaning there is no top-to-bottom authority model like with a central workspace. Also, the community will take part in the workspace by being rewarded for engagements. PRCY will work on multiple sustainable plans for community engagement, the retention plan was the kick off the engagement initiative. Centralized Decentralized 12 | P a g e PRCY© – Whitepaper V 1.0

5. PRCY Blockchain Features 5.1 What Are PRCY Coins? PRCY coins are cryptocurrencies that specialize in keeping you and your transactions hidden. Although the media portrays crypto as an anonymous, dark web currency, it’s actually quite transparent. Most blockchain networks broadcast every transaction and wallet balances publicly, so tracing someone’s financial activity isn’t all that difficult. PRCY focus on keeping transactions anonymous and untraceable. Anonymity disassociates your identity from your wallet and specific transactions while untrace ability prevents outside parties from piecing together your blockchain activity. Chain analysis isn’t simple, but several companies specialize in it, and they’re paid to do so. Often, it’s a continuous game of cat-and-mouse between privacy coins and the software trying to monitor them. 5.2 How do PRCY Work? PRCY has technology tactics to keep your identity shielded. PRCY uses a mix of different strategies. Let’s examine some of the most relevant ones. Stealth Addresses Stealth addresses are arguably the simplest way to improve your transaction privacy. At their most basic, stealth addresses involve creating a new address each time you receive cryptocurrency. Doing so ensures that outside parties can’t link any future payments to your wallet address. Although PRCY uses are more advanced complex tactics. PRCY uses a dual-key stealth address protocol (DKSAP). The protocol gives all wallet owners a private view key, private spend key, and a recipient address. 13 | P a g e PRCY© – Whitepaper V 1.0

You send crypto using the spend key and display incoming transactions with the view key. Although your recipient address is public, the funds you receive from each sender go to a separate, unique blockchain address. Only the sender and receiver in each transaction know the fund’s final destination. PRCY Ring Signatures In a blockchain transaction, you sign a digital signature to verify that you’re the sender. You’re the only person doing this signing, so it’s not tough for someone to trace it back to you. PRCY Ring signatures combine you with other signers in a ring to hide you as the sender. The higher the number of additional parties in the ring, the harder it is for someone to connect you with the transaction. Ring signatures hide you among other senders. 14 | P a g e PRCY© – Whitepaper V 1.0

PRCY RingCT PRCY make use of Ring Confidential Transactions (RingCTs) build off the foundation of ring signatures. In addition to masking your identity, PRCY RingCTs encrypt the output of your transaction, concealing the amount. PRCY Bulletproof PRCY Bulletproofs are short non-interactive zero-knowledge proofs that require no trusted setup. A PRCY bulletproof can be used to convince a verifier that an encrypted plaintext/transaction is well formed. For example, prove that an encrypted number is in a given range, without revealing anything else about the number. Compared to Zk-SNARKs, PRCY Bulletproofs require no trusted setup. However, verifying a bulletproof is more time consuming than verifying a SNARK proof. Bulletproofs are designed to enable efficient confidential transactions in Bitcoin and other cryptocurrencies. Confidential transactions hide the amount that is transferred in the transaction. Every confidential transaction contains a cryptographic proof that the transaction is valid. Bulletproofs shrink the size of the cryptographic proof from over 10kB to less than 1kB. Moreover, bulletproofs support proof aggregation, so that proving that m transaction values are valid adds only O(log(m)) additional elements to the size of a single proof. If all Bitcoin transactions were confidential and used Bulletproofs, then the total size of the UTXO set would be only 17 GB, compared to 160 GB with the currently used proofs. The Importance of Privacy You may not think that you need to keep your crypto activity private. If you’ve got nothing to hide, then why worry about it, right? Well, there are quite a few reasons why you should be in favor of a privacy-focused future. To best explain the importance of privacy coins, let’s tie it to a more familiar example, traditional banks. A blockchain without privacy mechanisms is like a bank that posts all of its customers’ transactions online. Just search an account number, and you’ve got access to someone’s complete financial history as well as the amount of money they possess. Even though you probably don’t know anyone’s account number, it wouldn’t be a challenge to figure one out if you wanted to. You can see the issue with that transparency. Blockchains are no different. Fungibility is Sound Money Perhaps more important than individual privacy, though, is the necessity of fungibility in a monetary system. Fungibility is a property in which you can interchange one currency unit for any other unit. For instance, every gram of gold is identical, so you can always exchange one gram of gold for another. You can’t say the same for Bitcoin. A Bitcoin may become tainted through money laundering or other illegal activity. Because you can track Bitcoin to its source, some vendors may not accept the tainted Bitcoin, placing a lower value on it than an untainted one. 15 | P a g e PRCY© – Whitepaper V 1.0

Fungibility brings reliability to a currency, and without a certain level of it, the currency won’t survive. Why would you keep a currency if you’re not confident that it’ll be accepted when you spend it? A privacy coin has no transaction history, so it can never become tainted. Privacy coins maintain your anonymity, but even better, they guarantee the fungibility that a currency needs to stand the test of time. 16 | P a g e PRCY© – Whitepaper V 1.0

6. Important links Official Website Website https://prcycoin.com Official Social Media Accounts Twitter: https://twitter.com/PRCYcoin Facebook Page: https://www.facebook.com/Prcycoin-101534778505838 Instagram: https://www.instagram.com/prcycoin PRCY Channels and Chats PRCY Coin Official: https://t.me/prcycoinofficial PRCY Coin Lounge: https://t.me/prcylounge PRCY Coin Update Channel: https://t.me/prcyupdate PRCY Coin Support: https://t.me/prcySupport PRCY Coin Social Media: https://t.me/PRCYsocialmediachannel PRCY Coin NL/BE: https://t.me/PrcycoinNLBe PRCY Coin Polish: https://t.me/PRCYcoinPL PRCY Coin Russian: https://t.me/PRCYcoinRU Discord: https://prcycoin.com/discord 17 | P a g e PRCY© – Whitepaper V 1.0

Blogs/News PRCY Blog: https://prcycoin.com/blog Reddit: https://www.reddit.com/r/PRCYCoin Telegram Update Channel: https://t.me/prcyupdate Exchanges Hotbit: https://www.hotbit.io/exchange?symbol=PRCY_USDT https://www.hotbit.io/exchange?symbol=PRCY_BTC Coinsbit: https://coinsbit.io/trade/PRCY_USDT https://coinsbit.io/trade/PRCY_BTC STEX: https://app.stex.com/en/trading/pair/USDT/PRCY https://app.stex.com/en/trading/pair/BTC/PRCY SWFT Blockchain: https://www.swft.pro Txbit: https://txbit.io/Trade/PRCY/USDT https://txbit.io/Trade/PRCY/BTC Staking Pool Coinsbit Staking Pool: https://coinsbit.io/staking-pool/plan/503 18 | P a g e PRCY© – Whitepaper V 1.0

PRCY Coin Announcements PRCY First Announcement: https://prcycoin.com/wp-content/uploads/2021/01/PRCY-ANNOUNCEMENT.pdf PRCY Specifications Announcement: https://prcycoin.com/wp-content/uploads/2021/01/PRCY_Specifications_Announcement.pdf PRCY Retention Plan: https://prcycoin.com/wpcontent/uploads/2021/01/PRCY_Retention_Plan_Announcement.pdf PRCY Coin QT Wallet Release: https://prcycoin.com/wp-content/uploads/2021/01/PRCY-Coin-QT-Wallet-Release.pdf PRCY Milestone Retention Plan: https://prcycoin.com/wp-content/uploads/2021/01/PRCY-Milestone-Retention-Plan.pdf PRCY Financial Report Q1: https://prcycoin.com/wp-content/uploads/2021/02/1ST-QT-2021-FINANCIAL-REPORT-PRCY.pdf Appendix Coin allocation explained. 60 million PRCY coins are minted at genesis. -12 million of PRCY coins are reserved and allocated to the owners of PRCY, these coins are vested. Each year 10% of these coins will be released from the lock up in a multi signature wallet solution, only after management predetermined milestones are reached. The vesting period is 10 years. The owners are forbidden to sell any coin within the coming 3 years counting from the genesis date of December 2020. -12 million of PRCY coins are allocated for airdrops, the first airdrop occurred close after genesis date of PRCY. The retention plan is made to manage the airdrops, the community can easily participate in these airdrops. All PRCY coins not yet distributed are locked in a multi signature wallet solution. -12 million of PRCY coins are part of the liquidity solution of PRCY. PRCY makes use of market makers or market making solutions of exchanges. In order to make it possible to buy PRCY for a good price with enough size. PRCY is needed for swap solutions at DEX, staking pools of 19 | P a g e PRCY© – Whitepaper V 1.0

exchanges or used as collateral requirement of exchanges. All PRCY coins not yet distributed are locked in a multi signature wallet solution. -6 million of PRCY coins are allocated for an unique community reward plan. Community members are rewarded according the plan if they contribute to help the PRCY the Eco-system to grow. This plan contributes to the strong philosophy of being a community driven project. All PRCY coins not yet distributed are locked in a multi signature wallet solution. -12 million of PRCY coins are allocated for development of the PRCY blockchain. Developers and other development contributors are rewarded in PRCY periodically to secure contingency of development by many contributors. All PRCY coins not yet distributed are locked in a multi signature wallet solution. -6 million of PRCY coins are allocated for marketing purposes and to reward all persons and entities in PRCY coins for their marketing efforts. All PRCY coins not yet distributed are locked in a multi signature wallet solution. 20 | P a g e PRCY© – Whitepaper V 1.0