The multisig groups we have formed so far, FSRT (First Strategic Reserve Team) and FLOT (First Liquidity Operations Team), were novel experiments that were not very successful. With efforts to create another multisig group underway in the form of RSOT (Reputed Signers Operation Team), it is important we analyze the previous failures and change what we are doing to create convincing reasons the next effort will be more successful.
FSRT tended to be very slow to respond, which created some anxiety about the safety of funds. Other than this significant problem, it did work. The main takeaway from that experience is that anonymous signers (different from psuedononymous signers) are poor choices, because they tend to be unmotivated and unaccountable.
In the case of FLOT, shareholders lost control of all created shareholder NSR and all BTC reserves used to support NuBits. The failure was quite severe, being the primary cause of a loss of nearly 3 million USD between NuShares, NuBits and BlockShares. Before we create another multisig group, we need reason to be confident this type of failure won’t happen again. It has been catastrophic, and is arguably the primary reason the NuShare price has dropped more than 85%. If the multisig funds had been used according to shareholder directives, the peg almost certainly would have been maintained with good liquidity at exactly $1.00 at all times. It is difficult to overstate the importance of this failure.
Similarly, if RSOT is not properly formed and is given all B&C Exchange funds, it could nearly destroy any chance of success the project has. We need to proceed very carefully and cautiously as a result. The situation with the handling of B&C Exchange funds is an important area that needs improvement, but we don’t need to proceed like it is a crisis. Developers are still getting paid, and funds are flowing just as they have been for the past year.
There appears to be two avenues that hold sufficient promise to be considered seriously. One to is pass a motion directing that B&C development funds be transferred to me. While I’m sure this is quite safe in terms of the funds staying under control of shareholders, I have to admit there are still loss scenarios that could occur, such as in the event of my death. Those scenarios are not particularly likely in the near term. Another option is to have a small multisig group consisting of myself, jooize and Sabreiib. I am hesitant to do so, due to concern that we still don’t understand how to make multisig groups perform reliably.
So, my question to the community is: how can we ensure these multisig groups perform reliably given our recent severe failures?