A system and method for encoding multi-bit features into sinusoidal waveforms at selected phase angles. The method includes receiving input digital data and encoding the input digital data in a sinusoidal waveform by modulating the sinusoidal waveform at selected phase angles within a period of the sinusoidal waveform, thereby creating a modulated sinusoidal waveform. An encoded analog waveform is generated, using a digital-to-analog converter, from a digital representation of the modulated sinusoidal waveform. The modulating includes forming a first data notch at a first phase angle of the selected phase angles wherein the first data notch includes a first plurality of transition features and subtends a first phase angle range about the first phase angle, the first plurality of transition features being representative of a first plurality of bit values included within the input digital data.