DMD Diamond is a blockchain project that aims to combine features from Bitcoin and Ethereum. It utilizes a cooperative consensus algorithm and supports the Ethereum Virtual Machine (EVM). The project focuses on scarcity, security, decentralization, and community governance. ^[1]

Overview

DMD Diamond is an established blockchain project that has evolved through multiple upgrades to address ongoing technological and market challenges by integrating features from Bitcoin, Ethereum, and other platforms. The latest iteration, DMD Diamond v4, is an independent blockchain combining application, networking, governance, and consensus layers designed for fast, low-cost, interoperable decentralized applications.

It employs a hybrid consensus mechanism mixing Honey Badger Byzantine Fault Tolerance (HBBFT) with delegated Proof-of-Stake (POSDAO). It offers fast transaction speeds with low fees and a low carbon footprint. The native DMD coin has a fixed supply of 4.38 million—making it significantly scarcer than Bitcoin—and maintains a unique mechanism that recycles unclaimed or abandoned coins back into circulation, enabling sustainable network growth without increasing total supply. DMD Diamond v4 also prioritizes interoperability with other blockchains, supporting cross-chain communication and collaboration with Ethereum-based projects to promote stability and integration across the cryptocurrency ecosystem. ^[2]

History

DMD Diamond originated mid-2013 as one of many Bitcoin forks, launching as a limited-supply cryptocurrency using a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) model. After the original creator disappeared shortly after launch, a small community formed on Bitcointalk to maintain and develop the project, stabilizing the staking algorithm with DMDv2 in 2014. This community-driven effort helped DMD survive many common early-crypto pitfalls like pump-and-dump schemes, fostering a loyal base attracted to its scarcity and vision of financial independence outside traditional systems.

Over time, the project evolved through several upgrades: DMDv1 combined elements from several coins; DMDv2 improved staking and extended the emission schedule; DMDv3 refined the reward system further; and DMDv4 introduced cooperative consensus with Honey Badger Byzantine Fault Tolerance (HBBFT) and delegated Proof-of-Stake (POSDAO) to achieve faster transaction speeds and sustainability. DMD also responded to industry challenges by switching its PoW algorithm from Scrypt to ASIC-resistant Groestl, preserving the blockchain history while enabling fairer mining. The project explored Masternodes for enhanced utility but focused on faster, environmentally friendly consensus models.

Throughout boom and bust cycles, DMD Diamond maintained a position among the top 100 coins and gained a reputation as the “Phoenix of Crypto” for its ability to adapt and upgrade. Its continuous evolution emphasizes long-term viability, sustainability, and interoperability, now supporting smart contracts and Ethereum compatibility to foster broader decentralized application development. ^[3]

Features

DMD Diamond V4 is a blockchain platform integrating delegated Proof-of-Stake validator elections with the Honey Badger Byzantine Fault Tolerance (HBBFT) consensus protocol. This combination enables fast and final transaction settlement, resistance to censorship, and protection against network forks. The system supports Ethereum Virtual Machine (EVM)-compatible smart contracts, allowing interoperability and migration of decentralized applications from Ethereum and similar chains.

The network has a fixed total supply of 4.38 million DMD tokens, all created at genesis with no mining or inflation mechanisms. It offers a throughput exceeding 400 transactions per second and includes Turing-complete smart contract capabilities. Validators rotate every 12 hours to limit centralization, and a two-thirds consensus is required to validate changes or forks, eliminating orphan blocks. Additional technical features include threshold encryption for added security, avoidance of unnecessary empty blocks during low activity, and the ability to reclaim lost coins to maintain long-term sustainability.

DMD Diamond emphasizes scarcity by capping the token supply and avoiding future dilution. It promotes sustainability through an eco-friendly design, validator reward system, and mechanisms to recover inactive assets. The network's fairness is reinforced by setting a staking cap of 50,000 DMD per validator to reduce power concentration. The use of POSDAO for validator rewards and rotation supports decentralized participation.

Security is enhanced through the HBBFT protocol, which ensures finality and eliminates the risk of orphaned transactions. The network is also censorship-resistant and includes mechanisms to prevent transaction front-running. On-chain governance is planned via a DAO module for future upgrades (v4.1), allowing stakeholders to vote on protocol changes and development funding. Additional features include dynamic block times and true random number generation, supporting network performance and secure application development. ^{[5] [6] [7]}

Technology

POSDAO

POSDAO (Proof-of-Stake Decentralized Autonomous Organization) is DMD Diamond’s validator selection mechanism. It enables decentralized, fair, and dynamic participation in block creation. Instead of relying on a fixed set of validators, POSDAO elects a new group of active nodes every 12-hour Epoch from a pool of candidates, balancing performance with decentralization and security.

In DMD’s implementation, the cooperative HBBFT consensus protocol is limited to 25 active validators for efficiency, but POSDAO ensures these validators change regularly to avoid centralization. Candidates are chosen based on the amount of DMD staked on them, with staking caps (10,000–50,000 DMD) in place to prevent dominance by wealth. Up to 438 validator candidates can exist, reflecting the token’s scarcity. POSDAO also supports on-chain governance and staking rewards, while maintaining strict protections against manipulation. ^[9]

Lightweight Consensus

DMDv4 replaces Proof-of-Work (PoW) with a lightweight Proof-of-Stake (PoS) consensus to address PoW’s high energy consumption, limited throughput, and costly transactions. PoW’s reliance on specialized, constantly upgraded mining hardware leads to significant environmental impact and inefficiencies like block finality issues and frequent forks.

To overcome these, DMDv4 employs a cooperative consensus using the Honey Badger Byzantine Fault Tolerance (HBBFT) protocol. This protocol eliminates competition among validators, enables instant transaction finality, and adapts block times based on network demand. This approach ensures faster, more sustainable, and censorship-resistant transactions, supporting the needs of high-value financial systems and decentralized finance applications while maintaining decentralized governance without compromising performance. ^[9]

Honey Badger BFT

DMDv4 adopts the Honey Badger Byzantine Fault Tolerant (HBBFT) protocol, a consensus algorithm designed for fast throughput, strong security, and robust performance without the risk of forks or orphan blocks. HBBFT uses an asynchronous, leaderless approach where multiple validator nodes simultaneously propose and validate transaction fractions, enabling instant block finality and confirmation within seconds without mining.

The protocol operates with a small, rotating set of 25 active validators selected every 12 hours, ensuring decentralization and fair participation. HBBFT also includes built-in random number generation and produces no empty blocks, only small heartbeat blocks after long idle periods. Its design resists censorship by encrypting transactions until consensus, preventing validators from selectively approving transactions. It maintains network operation even under heavy traffic or malicious attacks, with faulty nodes identified and reported. This mechanism ensures a secure, immediate, and immutable transaction ledger. ^[9]

Diamond UI

Diamond UI is the primary platform for managing the DMD Diamond blockchain ecosystem operations. It provides users access to validator lists, network and epoch statistics, DAO decisions, personal profiles, staking functions, and reward management. Designed as an upgrade from the previous staking interface, Diamond UI offers a clearer, more feature-rich experience for users to lock coins for staking, earn rewards, and manage validator pools.

Users can interact with the platform at different levels depending on their status—whether they are general users without a connected wallet, validator candidates who meet staking requirements, or DMD holders who delegate their coins for staking rewards. The UI supports wallet connections via Metamask, WalletConnect, Brave, and Coinbase wallets, which can be accessed online or locally through a downloadable dApp.

Validator candidates with at least 10,000 DMD can create staking pools and manage their participation, including setting node operator shares to delegate node management if desired. The interface allows coin holders with a minimum of 100 DMD to stake on validators and track their stakes, voting power, and rewards. Users can also unstake coins, view detailed validator information, and follow network news and statistics.

Diamond UI emphasizes transparency and ease of use by integrating staking, governance (DAO), and network participation into one comprehensive interface. It supports the network’s consensus protocol by facilitating validator rotation, stake delegation, and reward distribution while maintaining decentralization and security. ^[10]

DMD

The DMD coin on the Diamond blockchain serves multiple roles, including on-chain governance, network security, payments, covering network fees, and smart contract deployment. It is a scarce, fixed-supply resource that allows holders to earn rewards through active participation as validators or delegated Proof-of-Stake (dPOS) stakers who help secure the blockchain.

DMD tokens are widely distributed among many smaller holders, with less than half of the total supply held by the top 100 addresses as of June 2024, reflecting a decentralized ownership structure. ^[11]

Tokenomics

DMD’s total supply is capped at 4.38 million coins, all issued at the network’s genesis block, with no additional mining. Validators and delegators earn block rewards, which are distributed equally among validators and shared with those who stake with them. Each validator has a maximum staking limit of 50,000 DMD to ensure fairness and prevent power concentration. ^[11]

Partnerships

• BitMart
• PerfectNet
• Blockserv
• Lab10
• P2PB2B
• Minerva
• Metamask
• Gnosis Chain
• Open Ethereum
• Newsbit