Smoke by Cannacoin™

Abstract

The global cannabis industry faces regulatory fragmentation limiting banking access, leading to inefficient cash transactions. Smoke introduces a hybrid PoW/PoS blockchain solution built on Blackcoin 13.2's Scrypt algorithm. Fixed supply: 420,000,069 SMOKE. 5% premine: 21,000,003 coins. Transitions to PoS after block 2,102,400 with 21-coin rewards. Theoretical features: NFT tracking, collateralized lending (unimplemented as of March 2025).

Introduction

Cannabis navigates conflicting regulations, with legalization in Canada and 30+ U.S. states by March 2025, but federal prohibitions restrict banking. Smoke offers peer-to-peer electronic cash via hybrid PoW/PoS, capping at 420,000,069 coins with 5% premine for development. Features 1-minute blocks, 12 confirmations, exploring lending, tracking, and NFTs.

Key Specifications

Tokenomics

• Total Supply: 420,000,069 SMOKE
• Premine: 21,000,003 (5%) – 40% development, 30% marketing, 30% community
• PoW Distribution: 105,120,000 over 2,102,400 blocks
• PoS Distribution: 293,880,066 over ~14M blocks (~26.58 years)
• Donation: 5% of PoS rewards to community

Proposed Features

Seed-to-Sale Tracking and NFT Integration: Theoretical NFT system for supply chain transparency, recording cultivation to sale with data like THC levels (unimplemented).

Lending Mechanism: Cannabis-collateralized loans via decentralized custody, verified by NFTs. Challenges include perishability and regulations (unimplemented).

Privacy: Pseudonymous addresses; planned encrypted NFTs for authorized access.

Conclusion

Smoke by Cannacoin™ represents a groundbreaking advancement in blockchain technology specifically designed for the cannabis industry, merging the security of hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) mechanisms to create a decentralized platform that addresses longstanding challenges in financial inclusion, supply chain transparency, and regulatory compliance. With a total supply capped at 420,000,069 SMOKE tokens—a nod to cannabis culture—and a 5% premine of 21,000,003 tokens strategically allocated (40% to development, 30% to marketing, and 30% to community initiatives), the project ensures balanced growth and sustainability. The initial PoW phase, utilizing the Scrypt algorithm for ASIC resistance, distributes 105,120,000 tokens across 2,102,400 blocks at 50 tokens each, before transitioning to PoS, which will yield 293,880,066 tokens at 21 per block over approximately 26.58 years, with 5% of rewards dedicated to community projects.

As of November 2025, Smoke's mainnet is operational, supporting active mining through dedicated pools and staking opportunities that have garnered attention for potentially high annual percentage yields (APYs) up to 893%, as highlighted in recent community guides. Wallets are available for Windows and other platforms, facilitating secure token management via RPC port 23413 and P2P port 23414. Network monitoring is enabled through block explorers accessible on the official site, allowing users to track transactions with 1-minute block intervals and 12 confirmations for enhanced reliability.

While the whitepaper's proposed features—such as NFT-integrated seed-to-sale tracking for embedding data like THC levels and origin into immutable records, cannabis-collateralized lending via decentralized custodial networks, and privacy-focused encrypted metadata—remain in developmental or promotional stages without full implementation evidence, ongoing community engagements on platforms like X (formerly Twitter) and the blog continue to promote these innovations. For instance, recent posts emphasize DeFi for the "green revolution" and Halloween-themed HODL campaigns, underscoring the project's vibrant ecosystem.

Rooted in cannabis's ancient history—from its use in China circa 2700 BCE for textiles and medicine—to its modern regulatory paradoxes, including federal U.S. Schedule I status barring banking access despite legalization in over 30 states and Canada, Smoke positions itself as a catalyst for change. By fostering pseudonymity, SPV for lightweight clients, and pruning for efficient storage, it not only mitigates risks like theft in cash-heavy transactions but also paves the way for a transparent, empowered digital economy. The Cannacoin Community Foundation's commitment to open-source development on GitHub invites global collaboration, ensuring Smoke evolves to meet the $73.6 billion global cannabis market's needs projected by 2027.

In summary, Smoke by Cannacoin™ transcends traditional cryptocurrency by tailoring blockchain to cannabis-specific applications, balancing innovation with practicality. As development progresses, it holds the potential to revolutionize commerce, from cultivators to consumers, driving toward a more inclusive and decentralized future.