A note on Constellation Network

Dear DAG Holders and Supporters,

Over the past year, the Constellation team has made significant strides as we carve out our unique path and narrative in the web3 space. Each day, I have the privilege of working alongside a team of true innovators who demonstrate exceptional resilience and creativity under dynamic, and sometimes unfavorable, conditions. Each person at this organization works multiple roles across multiple products and believes that we will win by being different.

Before I continue to dive into the achievements of this last year, and highlight technical and company milestones, it is important to share with you all the values of this company. Our values at this company were founded early in the web3 movement where non-conformity was praised and new ways of thinking/approaches were championed. We continue to share this mission of non-conformity while persevering with persistence, innovating, and holding strong a determination that our world view will provide a path for those that see upside in new ways of self-expression.

This way of thinking, these values, show up throughout the technology we create (and our approaches), the understanding and necessity to support many products needed to maintain a foundation, and our ability to communicate through education. From a technical perspective, our mission from the start has been to differentiate ourselves from other blockchain networks by adopting a unique business model — one that eschews traditional consumer-based gas fees in favor shifting fees to the business while providing greater flexibility with existing infrastructure and business models.

In late 2023 and early 2024, we launched, fine-tuned, and scaled our first application-specific network — a Layer 1 blockchain built on Constellation’s Layer 0, with Dor Technologies. This initiative involved not only creating and maintaining a new block explorer, cryptocurrency, and node operator network but also managing the existing product and revenue streams of Dor, the core protocol, and other products and solutions. Dor embodies our vision of Decentralized Physical Infrastructure (DePIN), one use case of many that could be built on our network, and allows us to truly “drink our own champagne” by using the tools we created to showcase the extraction of net new value.

Dor Block Explorer:https://explorer.getdor.com/

What set the Dor network apart was our ability to integrate an external API with a distributed network, allowing us to mine tokens based on real-world data that was hashed and validated on the Dor Network. This represents a novel incentive model tied directly to tangible data.

While it may seem like a modest achievement, few organizations support multiple Layer 1 blockchains while concurrently running a core protocol, developer documentation and support, and many products and their revenue streams/user bases. While overwhelming at times, it can provide us with insights into our customer journey while identifying key areas of improvement that we can act on.

For example, and with our work with Dor, we identified key areas for improvement and new opportunities within our base layer technology and ecosystem:

• Documentation: We recognized the need to enhance and streamline our documentation for developers, making it easier to replicate our advancements. This led to the successful launch of our Hackathon (sponsored/partnered with Algorand, Panasonic, C14, and Forward Edge) with over 700 signups and 50 submissions and ongoing developer support.
• Metagraphs: We saw the need for clearer, more accessible expressions of our network’s capabilities to attract new users, invigorate existing supporters, and inspire developers. The introduction of the El Paca token — a “meme” utility token — was a step in this direction. It allows programmatic distribution based on verified activities, such as tweeting $DAG or holding DAG, and will play a role in our future DEX as we can reward active participation in other tokens.
• Snapshot Fees: To better align with network economics, we introduced snapshot fees for each metagraph entering the network while maintaining a free network for the individual user. By seeing Dor live on the network, we could make fixed decisions on how to price the network for scalability and adoption. This shift preserves the low consumer fees associated with DAG while introducing a fee structure on the business/metagraph side, enhancing the network’s security and functionality.

In addition to these advancements, we recognized the opportunity and business case to build a decentralized exchange, innovate beyond traditional DEXs, and how to connect each of the elements of our ecosystem. We’re exploring new primitives to enable more DeFi-like functionalities, simplify token minting, and support both producers and consumers within our ecosystem.

Furthermore, and to support this growing list of products and services, we needed to bring in the DAG holder into a meaningful way that would allow them to contribute and support the ecosystem: validators that can attract collateral by allowing non-validator nodes to delegate the collateral and earn rewards.

Diversification, Growth, and HyDef 2024

Our strength and agility stem from our ability to diversify and manage multiple products effectively. With revenue streams ranging from analytics and physical infrastructure to distributed infrastructure for the US Federal Government, we build and iterate based on customer needs rather than artificially creating demand. This approach has safeguarded us from the volatility of the crypto market and provided valuable insights applicable to our open-source endeavors. Furthermore, this approach has kept our mission intact while evolving to new opportunities in a data driven economy: artificial intelligence and the need for verifiable data, secure communications with source attribution, and security-by-design for digital workflows.

As we look ahead, we’re focusing on enhancing the overall user experience within our ecosystem. This includes improving the Stargazer Wallet, restructuring the Lattice Gateway to support our future DEX, and expanding the DAG block explorer as the network grows, and tying in DAG holders to network supporters through a validator-delegator relationship.

2024 has been a year of remarkable progress for Constellation. Despite the challenges of the industry, we have kept our heads down consistently delivering against our mission. Our team has demonstrated incredible dedication to our vision, successfully managing and growing multiple products, and continuing to foster nearly $50M in pipeline opportunity in the federal government alone.

As we prepare for Constellation’s conference, HyDef 2024, on October 24th, we’re excited to share a more streamlined vision of Constellation, celebrate our growth, and introduce low-code/no-code approaches that will benefit both producers and consumers within our ecosystem.

I look forward to providing more consistent updates and sharing our continued progress. We have much to celebrate and even more to anticipate.

Warm regards,

Benjamin Jorgensen

CEO — Constellation Network Inc.

For more information follow on X

@benjorgensen

@conste11ation