[Passed] B&C Exchange Development and Marketing Fund

NuShares Motions
#1

Motion hash to vote for in Nu AND B&C Exchange client: 47e9d9eab0d1da686ee6955ddda8025b7b86a446

This motion is stored on GitHub. To verify the RIPEMD-160 hash, the GitHub version should be copied (with no white space at the beginning or end) using a RIPEMD-160 calculator like Browserling. The text is included here for convenience.

-----Begin Finalized Motion-----
237 million NuShares shall be granted to BlockShare holders, as an adjustment for funds held and quarantined in NuShare address SSajkovCPXwdw46nyJ7vpTDkwtRZJzyY2z.

While it is possible a custodial grant will need to be passed by NuShare holders to generate some or all of this 237 million NSR, most likely the funds will be paid from Nu Liquidity Operations NSR. The Chief of Liquidity Operations may decide when and how much of the 237 million NSR will be disbursed. Most likely it will be transferred to a dedicated B&C Exchange NSR addresses in partial payments. Initially it is expected that Esko, Manager, Liquidity Operations, will control the funds on behalf of BlockShare holders, beginning at NuShare address SVMzeQc4LfmTtjdtgGycVaoEbs4xEcKYZ8 for compensation. Later, it is expected a multisig group will manage funds. In the absence of specific direction from BlockShare holders, all decisions about the use of these funds, including, but not limited to, paying contractors and allocating the funds to various assets, shall be made by Phoenix. This will remain true even if and when funds are transferred to multisig groups, which Phoenix will choose the members of. Funds will be held in publicly published blockchain addresses so the status of all blockchain funds are public. Some funds may be on deposit at exchanges. Full logs of deposits, withdrawals and trades made with exchange accounts will be made public.

Raw data of all transactions will be released, either as blockchain records or exchange account records. BlockShare holders would likely benefit from additional analysis and reporting on the use of these funds. Phoenix encourages BlockShare holders to hire a competent accountant to do this work. It is outside the scope of Phoenix’s expertise and it is against shareholder interests for it to spend its limited time on financial reporting, beyond the publication of raw data that can be further analyzed by others. Phoenix is a contractor for the B&C Exchange DAO, not a CEO or anything of the sort.

Core competencies of Phoenix include software development and economics, particularly involving financial trading markets. Phoenix does not regard itself as a competent marketer or promoter. Phoenix calls this the Development and Marketing fund because it recognizes the importance of allocating a large portion of funds to marketing efforts: the promotion of B&C Exchange and BlockShares to the public. Phoenix is not competent to direct the use of marketing funds in any detailed manner. That will need to be managed by a professional resource that has not been defined yet. B&C Exchange needs marketing professionals to step forward and provide marketing services. At this time, with respect to B&C Exchange, Phoenix’s attention and efforts will be focused on development of the core client and protocol.

Of course, the B&C Exchange protocol remains unchanged by this motion. It remains a decentralized autonomous organization that anyone can become a custodian of funds for, if they can win BlockShare holder support. Phoenix will certainly support and cooperate with other custodians that are dedicated to furthering BlockShare holder interests with their independent and decentralized work. Anyone who receives a custodial grant outside the scope of these 237 million NSR will have no accountability to Phoenix, and Phoenix will have no accountability for their actions, consistent with DAO architecture.
-----End Finalized Motion-----

It is best if this motion is passed on both blockchains, B&C Exchange and Nu. Let us examine the meaning of having it only pass on one blockchain though, in case that happens. If it passes on B&C Exchange only, the 237 million NSR will not be granted and there will not be much of a development and marketing fund to work with. The situation is somewhat more curious if the motion passes on the Nu blockchain but not B&C. In that case, full funding will have been achieved, but without a mandate from BlockShare holders. With the intended use of funds being development of the open source core client and later marketing, I suppose a mandate from BlockShare holders isn’t technically needed. Anyone can take the open source B&C Exchange code, add to it, and publish a new release. Whether BlockShare holders adopt it is another matter. I will certainly make it a priority to produce a software product they will choose to adopt. Therefore, it seems having this motion pass on the Nu blockchain is absolutely essential, while having it pass on the B&C Exchange blockchain is desirable for clarity and cohesion of the project, but not strictly necessary to proceed.

In June of 2016, the value of the B&C Exchange Development and Marketing fund was around $20,000. With the passage of this motion, it will be worth nearly $500,000. The increase is due to an increase in the value of NuBits and later, NuShares. For some time, active development of B&C has been put on hold while funding for that development could be reconstituted. Passage of this motion completes the reconstitution of the fund and warrants earnest development, with contractors in Vancouver and elsewhere fully engaged.

4 Likes
B&C Exchange Fund Log
B&C Exchange Fund Log
#2

Hello @Phoenix, are you the boss of this project? When can we expect this platform to be fully operational? You seem to have a very strong team and I am really looking forward to what you are going to build! Decentralized exchanges are the future and I think this is a very ambitious project.

1 Like
#3

Anyone can become involved in building B&C Exchange independent of me. I encourage people to identify needs that B&C Exchange shareholders have, how they can meet them, and propose custodial grants to get paid for doing work specified in a proposed contract with BlockShare holders. I don’t need to be involved in that due to B&C Exchange’s novel decentralized architecture. People can, and have in the case of Nu, simply put a proposal to offer some type of service to shareholders or customers on this forum and observe what the level of blockchain support for their proposal is.

BlockShare holders are the boss of this project, in proportion to the number of BlockShares they hold.

So I am not the boss of this project. However, I am asking to be boss of these particular funds to use on behalf of BlockShare holders. I am qualified to develop the code base, although I don’t have the time to do so. Accordingly, I will be working with developers Mike and two new contractors in Vancouver who will have their time split between Nu and B&C, to the extent they need me to make code development a success.

It is a very ambitious project. It is not a clone coin. Quite the opposite. We are truly pushing at the edges of blockchain technology as we attempt to implement B&C Exchange. Our work is experimental. I am excited to be a part of that and I love the challenge of doing something that has never been done before, but the difficulty of the task before us has implications for shareholders that ought to be considered. Basically, you can expect a lot more problems and setbacks than with a clone coin that offers no real innovation. There is a lot of uncertainty, precisely because no one has done this before.

I am optimistic about our chances for a breakthrough in decentralized exchange technology, just as this team successfully created breakthrough technology in decentralized stable currencies.

When the exchange is “fully operational” depends on a lot of things. Chief among them is how you define “fully operational”. I suspect B&C Exchange will spend a considerable period of time with very small trading amount limits, functioning as a live, but admittedly somewhat unstable exchange. We will work the kinks out over time. If everything went perfectly and optimally it would be at least several months before we had a version that permitted trades using trivial sums of money. I doubt everything will go perfectly.

I wish to point out that the multisig signer failure in Nu in June 2016 is ominous for B&C Exchange, because it is totally reliant on multisig signers. One factor in B&C Exchange’s favor is that the multisig signer role in B&C Exchange is fully automated, whereas in Nu it is not. This means there is no room for exercising discretion as a multisig signer for B&C Exchange. You just run the software. Still, I suspect gaining reliable multisig signers and working out the details of what to do when signers retire or disappear will be one of the difficult problems B&C has to solve. I believe resources are key to solving the problem. The multisig signers for Nu in 2016 that did such a shockingly terrible job were paid about $150 per month. They say you get what you pay for. Our economic scale was very small. We need to compensate more than that to get better results. A lot of what controls what we can pay in compensation is the BlockShare market cap. This stands at about $120,000 right now. It isn’t very much. We will need to build that up to a much higher level before we will be able to properly secure B&C Exchange. There is good reason to think we can do that. The key is exchange listings and exchange liquidity. That is especially difficult in the case of B&C Exchange, because we are a competitor of exchanges. Still, there is reason to think major improvements can be had.

I believe the business proposition of B&C Exchange is fundamentally sound: to charge a small fee for messages, including trades. There is good reason to think that B&C Exchange can grow into a high volume exchange that offers unparalleled security and privacy. B&C Exchange can, at a later stage of development, also provide sophisticated escrow services as a second line of business.

2 Likes
#4

One more note about the major increase in market cap we need to secure B&C Exchange: I have been saying that we needed to restore Nu before we could have success with B&C Exchange. NuShares are up more than 1000% in 2017 so far. That is a restoration. As far as I am concerned, it is BlockShares turn, which appears to have only risen by double digit percents so far in 2017. The success we have seen in Nu creates a foundation to replicate that success in B&C Exchange, most directly by increasing funding available, but also in a variety of other ways.

#5

We need to get this passed quickly so we can proceed with recruiting developers in Vancouver immediately. So, I am finalizing it and putting it to a vote.

Motion hash to vote for in Nu AND B&C Exchange client: 47e9d9eab0d1da686ee6955ddda8025b7b86a446

This motion is stored on GitHub. To verify the RIPEMD-160 hash, the GitHub version should be copied (with no white space at the beginning or end) using a RIPEMD-160 calculator like Browserling.

1 Like
#6

Hey @Phoenix, I appreciate your message a lot! Thank you very much for detailing every aspect! Someone told me that you will be a superior solution for decentralized currency exchange because of the design of your exchange. But I can’t find a working link to your whitepaper. Please provide a working link! I want to read about you and spread the word. Thank you!

1 Like
#7

Here is a link. A normal link doesn’t work here because the forum software doesn’t handle the ampersand in the link properly. Here is the link in a way that the forum won’t recognize it as a link, so it doesn’t alter it:

[https://bcexchange.org/assets/Blocks_&_Chains_Decentralized_Exchange.pdf]

Thank you for your enthusiasm!

The pause we have needed to take in implementation has been quite frustrating to me, but we are getting development back on track and cranked up quickly. Hopefully we will be able to announce the hire of a couple contract developers that will split their time between Nu and B&C soon. If the funding level continues to stabilize or increases, I think we will add more professional effort to the project.

2 Likes
#8

This has passed on both the Nu and B&C Exchange blockchains.

On the B&C Exchange blockchain, the support level for this motion in the last 1000 blocks was a landslide 67.9%.

On the Nu blockchain, the support level in the last 1000 blocks was a solid 59.4%.

Considering there is a bias toward a “no” vote in the protocol due to inactive or inattentive minters, this is a remarkable degree of consensus. Inactive or inattentive minters are thought to account for 10% to 20% of the “no” vote.

Shareholders, thank you for your confidence. I will do my utmost to see B&C Exchange developed into the first decentralized exchange of its kind. I am proud to be a part of this important and pioneering work.

We will begin the planned and previously approved hiring of contractors in Vancouver immediately.

1 Like
#9

Why does the B&C fund log have BTC from liquidity operations where it was proposed and passed by shareholders to be awarded in NSR?

1 Like
#10

I have as B&C Exchange custodian been instructed by authority Phoenix to trade BCEx NSR for BTC and USNBT. Only NSR has been transferred to B&C Exchange from Nu Liquidity Operations, as presented in the fund log.

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#11

Can we anticipate that those will NOT be traded back into NSR but are instead going to be used for development? Or is B&C Exchange going to be a new frequent trader in the NSR markets?