EOSREAL: Two New Criteria for EOS Block Producer Candidates

eosreal-io (27)in #eos • 7 years ago

EOSREAL is glad to present to the whole EOS community our reply to the final two check mark criteria for Block Producer Candidate. We appreciate the ongoing efforts of @eosgo and all BP candidates to create a fair and thorough report. EOSREAL will be supportive for any measures to improve transparency and integrity of EOS governance. We will work on continuously and extensively on EOS governance and compliance issues with our professionalism and knowledge.

1. Block Producer Candidate Roadmap on values, community project timeline, finances, transparency, or any other topic the candidate deems important. Please show the direction and future of your candidacy in a STEEM post for the community.

a. Our Values:

EOSREAL is dedicated to building an EOS community for global users, especially for the underprivileged population to protect their life, liberty and property.

b. Community Projects Roadmap

EOSREAL specializes in dealing with EOS functions and DAPPs with external interactions that require complex governance, controls, processes, and oracles in rapidly changing social and regulatory environments. We are especially dedicated to improving the EOS ecosystem and governance and developing DAPPs on EOS, pushing EOSIO’s value further in both developed and developing countries.

The following is the current community projects roadmap of EOSREAL:

Voting mechanism designing

Participate in constitution drafting

Participate in the arbitration structure design

EOS governance discussion around global meetups

Hold meetups in several regions for sharing, educating and promoting

Develop DAPPs, especially for the benefits of the underprivileged

c. Finances

Financial process consists of not only book keeping but also proper reporting and auditing. We will disclose the source of funding and the usage of funding, with auditor’s report published on our website for community to review.

For EOS, some important issues to address are:

Funding Sources, to understand BP’s independence
How to use BP reward, especially how much reward is going to non-operating, non-community projects outside the EOS system, such as BP team’s own salary

The following are the finances disclosed about EOSREAL:

1) Funding and Financial Independence

EOSREAL does not have outside investors. EOSREAL is internally funded and fully independent without any investors. The team provide initial operating budget of $250k from member’s own savings.

2) Block Reward Uses: Top Priority

EOSREAL will first use the block rewards to cover the physical operating costs (servers, broadbands, hosting, outsourced 24X7 maintenance services etc.), those operating costs will not include team members compensation.

3) Block Reward Uses: Second Priority

EOSREAL will second use remaining BP reward to develop/help the community projects, EOS governance, EOS community and EOS DAPPs.

4) Team Compensation

No more than 10% of the block rewards will be distributed to the team for EOSREAL personnel compensation.

5) Financial Auditing

EOSREAL will hire a third-party independent auditor to audit all the financials and publish the audited financial reports to the public for monitor and review. The financial reports will include but not limited to the following information:

The funding sources
The EOS tokens as block producing rewards
The EOS tokens as community vote rewards
Fluctuation between EOS tokens vs Fiat money
The use of block producing rewards in Fiat money term
The compensation to team members in Fiat money term

d. Transparency

A full transparency as a BP candidate is necessary for the community to decide whom to vote for. We think the disclosure should consist of the following information:

Real operating entity identity
Real team IDs
Related parties

The following is the information disclosed about EOSREAL:

1) Full Disclosure of Related Party

EOSREAL will issue a periodic report to fully disclose its related party. The information to be disclosed will include but not limited to the information and token holding of the following entities:

Parties that have control or joint control over the block producer candidate
Ultimate controlling parties
Parties that have significant influence over the block producer candidate
Parties acting in concert
Other related block producers of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others)
The entities that have transactions with the reporting block producer candidate

2) Full Disclosure of Related Party of EOSREAL

EOSREAL maintains full financial independence. All the funds of EOSREAL are internal from team members. EOSREAL is operated under GPEX PTE. LTD., which is a Singapore private limited company. There is neither outside investor who may control or have substantial impact on EOSREAL operating process, nor is there any ownership stake held by any individual or entity that holds vested interest stakes in other block producers. EOSREAL is the only business that GPEX PTE. LTD. is currently operating for. EOSREAL will not participate in any collusion behavior with other block producers or run more than one BP nodes. Following is the related parties’ information disclosed about EOSREAL:

Operating Entity of EOSREAL: GPEX PTE. LTD.

Location: Singapore
Address: 20 Maxwell Road, #09-17, Singapore
Other Business: There is no other business of GPEX PTE. LTD. than EOSREAL

Outside Investors of EOSREAL: No outside investors over GPEX PTE. LTD.

Invested in Other BPs: N/A
Interest in other BPs: N/A

Other Related Parties: Goldpebble Research PTE. LTD.

Relation with EOSREAL: Several members of EOSREAL and its operating entity GPEX PTE. LTD. work for Goldpebble Research at this moment
Brief Introduction about Goldpebble Research: Goldpebble Research is a financial technology company focusing on building investing edge with proprietary quantamental data technology.

3) Team Members and Domiciled Country

Team Members Information

Ambreen Gilani, Pakistan

Yifeng Mao, Singapore

Phoebe Xu, Singapore

Grace Xia, Australia

Felicia Bao, China

We would like to offer full ID info such as (id/passport, address proof) and team member interviews about our team members to EEC (or another electoral committee)

Suggestion of Team Member Information Provision

EOSREAL highly suggests that all block producer candidates should provide team members true identifications to EOS Election Commission (EEC) we suggest establishing (For more details, here is the link)

4) Third-Party Auditing and Regular Public Report

EOSREAL will stick to highest transparency standard. We will hire a third-party independent auditor to audit financial issues and publish the audited financial reports periodically to the whole community for public review and monitor. The financial reports will include but not limited to the following information:

The funding sources
The EOS tokens of block producing rewards
The EOS tokens of community vote rewards
Fluctuation between EOS tokens vs Fiat money
The use of block producing rewards in Fiat money term
The compensation to team members in Fiat money term

2. Position on Dividends (The sharing of Block Producer inflation rewards with unaffiliated voters, AKA "vote buying.") Please describe the block producer candidate's stance on sharing inflation rewards and/or paying dividends to EOS token holders.

The sharing of Block Producer inflation rewards with unaffiliated voters is harmful to the EOS ecosystem.

The block producing rewards distributed to those unaffiliated voters come from the token inflation, that is, cost of current token holders. In a healthy ecosystem where there is no vote-buying allowed, this part of tokens is largely used to cover the cost of block producers, which is spent on maintaining the network. Any excess return will attract new block producers to enter and be eliminated through competition. The competition mechanism also ensures the roles fulfillment of block producers. Moreover, the block producers could use the excess return from rewards to level up the equipment and services to better fulfill this vital role in this ecosystem. However, when vote buying exists, this part of value is transferred in form of new tokens and monetized by the unaffiliated voters. The value is ravened as capital gain of these voters, which does not contribute to the development of EOS system.

Based on the logic above, as a block producer candidate, EOSREAL will act in a transparent, highly-integrity and independent manner. Our stance on vote-buying is detailed as follow (A more complete written version is here):

No interference is allowed with the process of the voting, whether by increasing the vote share of the BP candidate, depressing the vote shares of the rival BP candidates, or both.
Vote-buying in any form should be prohibited, include sharing inflation rewards and/or paying dividends to EOS token holders, including BP election and worker proposals.
EOSREAL will abide by the strictest ethical standards not to participate in any form of vote-buying for support.
We highly suggest the following rules for EOS community to obey:

Anyone cannot ask for, receive or obtain, or give or confer, any property or benefit with the intention of influencing the vote before, during and after election.
The organized meetup, party, dining is not considered voting bribery in the circumstance of the cost per participant is below 200 USD.
Small souvenir is allowed as the cost to each guest is below 20 USD.
The penalty for a contravention of rule 1,2,3 is imposing a fine or deprivation of BP position for certain period, or both.
EOS Election Commission (EEC) will be the organization monitoring the election procedure.
The member of EEC can be replaced anytime if any member drops out due to personal reason or expelled by EOS Arbitrator.
Anyone can file a petition to EOS Arbitrator if finding EEC member takes bribery. The petition charge is USD 300, which will be refunded by defendant if the defendant is found guilty.
If any EEC member is found committing bribery behavior by EOS Arbitrator, EOS Arbitrator is empowered to expel the member out of EEC. A new member will replace.
Anyone who is aware of a breach of rule 1,2,3 is encouraged to notify the EEC. The EEC will then determine whether it is appropriate to refer to the EOS Arbitrator for further investigation. The complainant should provide as much information as possible to enable assessment of the alleged breach. Evidence from which the EEC can make a formal assessment of its compliance with the rule should accompany complaints.
If EOS Arbitrator accepts the case referred from EEC, the complainant shall pay the petition charge, USD 300 first, which will be refunded by defendant if the defendant is found guilty.
EOS Arbitrator is empowered to, amongst other things, declare the BP who was elected not duly elected, the penalty fine amount, deprive the BP position, and to dismiss or uphold the petition in whole or in part.
The penalty fine amount shall be used to compensate arbitrator work, and BLOCK.ONE shall set up an arbitration fund for arbitrator compensation and other cost related to arbitration.
The decision from EOS Arbitrator is final.

Regarding the exchange voting:

Exchanges may vote for the tokens they own with a standalone account (not mixing with its users’ assets)
For its users’ token, exchange should design non-manipulative interface for its users to choose among BP Candidates. Exchanges shall not create new manipulation of demography, disenfranchisement or misrecording, misuse of proxy.
It is not allowed to use a preset framework contract/disclosure term to mislead users to delegate their voting rights to exchanges.

Rules for further discussion: