We have just had a spectacularly expensive (3 million USD) failure of multisig groups in this community. The failed effort to develop multisig management of funds has now consumed more than 70% of the resources ever raised by Nu (as measured in NSR). It cost Nu far, far more than expected. The crisis that began in May with the failure of FLOT multisig groups is still smoldering. With over $300,000 in FLOT having gone rogue and refusing to respond to shareholder directives or interests, it seems rather obvious we ought to put the fire out before we consider rebuilding.
Where the previous crisis that destroyed so many resources is not even fully concluded and where none of the problems that led to the failures are being addressed, it is necessary to conclude that RSOT is extremely dangerous. The probability is that shareholders will lose control of funds handed to RSOT, just as they lost control of funds handed to FLOT. That is a huge, existential risk to the project that is absolutely unnecessary. Multisig control of shareholder funds is extremely experimental. No one has succeeded at the attempt, although there have been some spectacular failures. This means solutions will be difficult and very risky. Attempted solutions take away from development funds in a material way, and distract scarce community attention to an effort that if successful, will only have very modest benefits, while the costs of failure and the probability of failure are both extremely high. It just doesn’t make any sense to do this now.
What we need is development. Secondary concerns should be BlockShare liquidity and marketing. Setting up a novel and experimental method of managing development funds should be way down on the list of priorities, with the understanding that the cost to benefit ratios are not even close to workable at this point.
The people who are pushing for multisig development fund management aren’t doing anything that is going to move the B&C project forward, help it grow, or increase the BlockShare price. The participants in the effort are mostly people associated with Augeas, which we have explained in the past is composed of people whose motive is not economic. Rather, the motive is to do something interesting to nerds in a social context. RSOT meets those those needs quite well. We have seen FLOT was very quick to betray the economic interests of NuBit and NuShare holders precisely because making money was quite far down their priority list.
Shareholders should never trust entities that aren’t properly motivated to meet economic, or growth goals.
There is a lot of value that can be created for BlockShare holders by getting development started again, which was stopped as a direct result of the FLOT failures that began in May. That is where the community ought to focus its efforts. Using a multisig group to manage development funds brings a lot of costs, risks and complications. The potential benefits are modest, so it should not be pursued at this time.
