I like your answer, demo! It seems that you're working on the design of a system and dealing with all the troubles it involves. However, your improved procedure still has some safety bugs: 1.- If the public key does not hold the 1000 dashes, then anybody can issue several public keys and pay to several guys (not necessarily related to dash) to deposit different envelopes. Then, a single guy (the owner of several masternodes) can later claim a separated identity for each public key. (It means that your procedure is vulnerable to a sybil attack) 2.- Your checking procedure may fall in an endless loop of objections. It's something very creepy regarding that nobody can leave until the procedure ends. A crypto-party with masked people?... Sounds scary!... Resembles me the movie "eyes wide shut" The "proof of Identity" has been a riddle in all descentralized designs, and never has had a satisfactory solutio n. If I were you, I'd would look in the PGP system, and the previous history of attempts to solve it. But Proof of ID may not be the target for what you're looking for. I mean, all this effort may not give the outcome you expect. I just say.