Also, like I pointed out earlier, this means that Masternodes now have no direct involvement in the actual person to person transaction, so if someone decides to use Darkcoin to so something illegal, there is no reasonable grounds for Masternode owners to be held liable.
Plausible deniability ftw!
As someone pointed out above, of course, aways consult your attorney.
That said, I'm not sure it's just plausible deniability. Once this is implemented, Masternodes will simply be denominating funds. They will no longer be facilitating the actual transfer of funds for purchases between a buyer and a seller. They are completely bypassed in that regard.
Wait, so in this case there isn't any Coinjoin? The pre-denominated funds are directly send from A to B without using a masternode?
No Coinjoin mix on the second phase, correct.
Non-denominated funds are sent out automatically to a MN for denomination, then sent back to your wallet (this may or may not involve several MN hops, I haven't spoken to Evan about that for a day or two and he comes up with new ideas every 5 minutes).
Once back in your wallet, they just sit there, all smug and anonymous until you decide to use them. There's no real need for a need for a 2nd Coinjoin mix to occur after that. When you send funds, your wallet automatically selects pre-anonymized denominations and sends them directly to your intended recipient.
I would go so far as to say no Coinjoin at all, right? The denomination step only involves your coins, right?
If this is the final solution then I would say that DRK has moved away from Coinjoin to something better which is of Evan's own invention.