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Dan Larimer: EOS Arbitrator 'Damage to Community' Worse Than Thefts

Dan larimer: eos arbitrator 'damage to community' worse than thefts

Dan Larimer: EOS Arbitrator 'Damage to Community' Worse Than Thefts

Dan larimer: eos arbitrator 'damage to community' worse than thefts

The CTO of the company that developed the protocol behind the EOS network has called for a much-reduced role for the controversial dispute arbitrator that has monopolized the attention of the EOS community in recent days and drawn significant outside criticism.

“My official opinion on disputes regarding stolen keys is that no action should be taken,” Dan Larimer wrote in an EOS Telegram channel Tuesday in reference to the EOS Core Arbitration Forum (ECAF). “The producers should campaign on using some of their pay for donations to make the victim whole.”

Larimer was referring to a recent order issued by the arbitrator, which required the EOS network’s block producers – the 21 validators who maintain the blockchain in a way analogous to bitcoin’s miners – to freeze 27 accounts that had been compromised by hackers or scammers.

ECAF’s action attracted significant criticism: on the one hand, from observers who felt the order violated the principle that cryptocurrency payments should not be subject to censorship; on the other, from EOS network participants who felt that ECAF’s processes were haphazard and unprofessional.

When a fake order claiming to be issued by ECAF circulated over the weekend, a top block producer refused to acknowledge such orders until the process had been reformed.

“Bottom line,” Larimer wrote Tuesday, “damage to community from ECAF is greater than funds we hope to restore to users.”

It’s not clear whether he was calling for ECAF to be eliminated entirely or for its role to be limited. He cautioned against allowing ECAF to become “a regulatory body of undefined and unpredictable power.”

On the other hand, he indicated that he still sees some place for arbitration on the EOS network.

“Arbitration should be limited to correction of intent of code,” he wrote, adding: “Freezing should be limited to code not function at intent.”

He said he would publish a blog post detailing his thoughts on Wednesday.

Governance pains

Larimer’s comments echoed a persistent thread of criticism in EOS social media forums: that governance – a central part of the network’s ethos and reason for existing – should all happen on the blockchain, rather than through ad hoc methods like screen grabs of PDFs shared on Telegram (such haphazard communication made it difficult to immediately discredit the fake ECAF order issued over the weekend).

“All governance by smart contract,” Larimer wrote. He continued (asterisks in the original):

“*if it can be solved by tech, then it should be solved by tech*”

For the most part, Larimer’s comments were well-received. Many participants in the chat complained about ECAF: its sloppy methods, its outsized power and the way it distracts from what they see as EOS’ world-changing potential.

Some users pushed back on Larimer’s proposals, however. “The ability to recover stolen funds and not have to worry about hackers was a big selling point” of EOS, one wrote. “It’s not possible without ECAF.”

Sam Sapoznick, the arbitrator who signed the (authentic) order freezing 27 addresses that had been compromised by bad actors, made a different argument: that Larimer’s involvement in such discussions was inappropriate, whatever he was proposing.

“You may be making overtures in a direction which could sabotage the entire project by undermining or completely dissolving the so-far reasonably-well-respected thesis that the main-net is independent of B1’s [Block.one’s] control and influence,” he wrote.

That independence has been a defining feature of EOS. Block.one designed the network, but did not launch it, turning the code over to the community instead. That decision meant the launch process, completed just a couple of weeks ago, was chaotic at times.

Damaged car image via Shutterstock

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Published at Wed, 27 Jun 2018 17:30:43 +0000

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Cross Coin ICO to Use Venture Tokens, Raise Investments for Funding Startups at U.S-Russian Starta Accelerator

Blockchain platform Cross Coin has announced its plans to launch an ICO crowdsale, with an investment target of between $1.5 million and $5 million. The investment raised will be utilized to develop a large pool of technology startups under the Russian and American project Starta Accelerator. Cross Coin is expecting significant speculative interest in the secondary markets for its venture tokens, which will eventually end up driving its price further upwards.

[Note: This is a press release.]


Cross Coin has enabled its investors to maximize their returns by giving them the option to exit their positions at any stage of the project. Investors can also trade Cross Coin tokens on the secondary market while participating in the various growth stages of all the 21 startups.

Based in Singapore, Cross Coin intends to release the full 5 million tokens during its upcoming ICO. The ICO price per token has been set at $1.00 — a price which, the company believes will interest a large range of potential investors in the venture capital industry.

Cross Coin plans to allocate the first $1.5 million raised in the ICO to refinancing the 21 startups that passed the Starta Accelerator Program in 2016/2017. Any remaining funds after the successful allocation of the first tranche of funds will be set aside for investing in the next group of startups at the Starta Accelerator program.

News about the purchase of startups by strategic investors – ‘exits,’ in venture terminology – exercises a tremendous influence upon the price of their shares on the secondary market.  In this instance, the Cross Coin token issuer will get a percentage of the profits gained by the Starta Accelerator from the exit of each startup. Cross Coin will receive 33% of all the revenues generated from the exits. The profits, after deducting expenses will be utilized by the platform to buy back the tokens at market price.

Additional news triggers that influence the secondary market value of the tokens include an increase in revenues generated by the startups, partnerships with major market participants, signing up large players as clients of B2B startups, and acceptance of startups to large accelerator programs and further rounds of investments.

The prominent members of this combined project include Alexey Girin and Kayrat Kaliyev. Alexey Girin is an investor, co-founder and managing director of Starta Capital VC fund and Starta Accelerator. He brings over ten years of experience in venture capital sector to promote the accelerator program in the right direction. Similarly,  Kaliyev with over 13 years of experience in the financial sector, is also the deputy director of the Financial Technology Department at the Astana International Financial Center in Kazakhstan. He plays an important part in the ICO as the head of Cross Coin.

Starta Accelerator is an initiative of Starta Capital Foundation, and it was started in 2015 in New York, USA. The program is geared towards a business and cultural adaptation in the USA and integration into the investment ecosystem of technological startups from Russia and the Eastern European countries.

Cross Coin has call options for 33% of the Starta Accelerator 16/17 SPV, a company that owns 7% in each of 20 startups and 2% in the 21st start-up, all of which passed the Starta Accelerator program in 2016-2017. Each of the pool’s companies has been appraised with a market value of $1.9 million or higher.


Images courtesy of Starta Accelerator, AdobeStock

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