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.
The only point I'd like to add is that a send of a specific amount stands out. Mix-on-send should still exist just to make all TXes look the same. Peeling off change through multiple hops would be even better. It would take only a few transactions before all TXes looked like change going God knows where... Hidden in plain view, no need to trust a disposed key or encryption of any kind, negligible bloat, blockchain still transparent and audit-able for function by anyone who wants to look at it, you just can't see the people... This is why I went all in on this coin. I didn't know what it would look like, but I knew Evan wanted to keep away from the ideas that were compromising this model pretending to be "better" than something that hadn't even been done yet.
I bet on the logic. Which means precisely dick in cryptos... I just knew it was the right road, even if I was the only one taking it.