Since the EOS community launched the EOSIO block producer campaign, according to the “Block Producer Candidate Report #7 - April 18, 2018”, a total of 71 candidates have been listed in the total active BPCs. Many more candidates are still on the road to participating in the game. Up to now, it has been heated discussions in the community as to whether BP node proponents can obtain benefits from block rewards obtained from BP nodes. According to Thomas Cox's proposal in "Article IV - v0.3.0 Draft EOS.IO Constitution - No Buying or Selling of Votes", that "No Member shall accept anything of value in exchange for a vote of any type, including Block Producer candidates or “Employees of the Proposals. Penalties for violation may include, but are not limited to, fines, account freezing, and reversal of transactions.” are considered to emphasize that “Votes represent a public good” of EOS and explicitly prohibit the election of bribery in the level of EOS.IO constitution.
However, such regulations only set a bottom line. In fact, there are still two major points need to be discussed about the use of EOS BP block rewards. On the one hand, the annual inflation token of the EOS network (also the BP node's out-of-the-money award) is a worthy digital asset, then how to use it effectively, fairly and transparently becomes a very important issue. There seems to be some rationality in rewarding the proponents of the BP node who actively vote for community governance. On the other hand, how to ensure that bribery elections are eliminated in the distribution of such benefits, so that the value of these systemic inflation tokens can actually feed back into the entire EOS ecosystem and promote the rapid and healthy development of the EOS whole community.
In response to this dilemma, OracleChain proposed the EOS BP revenue distribution plan based the EOS-BP-DAO mechanism. The plan advocates the use of EOS BP node rewards to support and incubate the start-up teams and projects of the EOS ecosystem. This program is mainly based on the following two principles: First, the foundation for the future development of EOS ecology is that more and better blockchain applications can be developed and landed based on EOS. So the EOS-BP-DAO mechanism is designed to use BP block rewards to cultivate these applications. Second, there should be a mechanism that motivates users who hold EOS Tokens can actively vote for participation in community governance, so the EOS-BP-DAO mechanism also retains incentives to reward BP's proponents. Finally, in EOS-BP-DAO mechanism, all such incubation and the distribution of possible interests must be formally implemented by open and transparent mode through strict democratic voting method, so as to avoid the exchange of interests and unjust gains.
The following is the EOS BP income distribution scheme with EOS-BP-DAO as the core part:
Each of these parts is described in detail as follows:
- BP node will transfer 50% of the block rewards to EOS-BP-DAO as a EOS development fund through smart contract
In this EOS-BP-DAO fund, the OracleChain team's own consideration is the usage of smart contracts to implement that node voters jointly decide how this part of the EOS token is used to invest or support EOS startup projects. Of course, if this part of the EOS-BP-DAO fund has the benefit of other application tokens from the supported startup project, it is also decided by the node voters how this part of the application tokens will be distributed fairly and transparently among the node voters.
Based on this design, those accounts that have voted for the BP will again vote in the EOS-BP-DAO to jointly decide on the use of the development fund.
Our initial plan for the specific details of the vote is:
Any fund use proposal will need to be supported by at least 51% of votes;
The proposed spending exceeds the 20% EOS of the current fund position, it will need to obtain support of at least 61% of the votes;
The proposed spending exceeds the 40% EOS of the current fund position, it will need to obtain support of at least 71% of the votes;
The proposed expenditure exceeds the 60% EOS of the current fund position, it will need to obtain support of at least 81% of the votes.
The setting of the above values is our initial consideration, and the core logic is that if the decision involves more money, then the fund manager in EOS-BP-DAO (actually the voter of the BP node) needs larger proportion of votes to support.
- 15% of BP node block rewards will be used for security, operation and maintenance of BP nodes.
- 10% of BP node block rewards will be used for the operation of BP nodes and the operation of EOS-BP-DAO, such as maintenance of EOS-BP-DAO contracts and related displays, etc.
- 10% of BP node block rewards will be used for EOS ecological cultivation, such as hosting EOS events such as EOS hackathons.
- 10% of the BP node block rewards will be used for EOS promotion. This type of promotion is more of a non-technical promotion work.
- 5% of BP node block rewards will be used for BP nodes to conduct EOS-related research and exploration.
In summary, OracleChain is a BP candidate and also a specific builder of EOS development ecology. We are fully aware of the importance of a start-up fund for an EOS start-up project. Based on the understanding of EOS ecology, we have proposed such a BP block rewards distribution plan. We believe that through such an allocation scheme, the use of BP block rewards can be maximally monitored by the entire community. At the same time, this allocation scheme can also balance the interests of all parties in a fair and equitable manner, and it can ensure that nodes have sufficient human and financial resources to provide the hardware, software, and human resources required for the successful operation of the BP node and continue to develop themselves.
OracleChain also officially committed to the entire EOS community that if OracleChain's efforts are fortunate enough to be recognized by the community and can become an EOS BP node, then we will use the above-mentioned EOS-BP-DAO BP block rewards distribution scheme to distribute the BP block rewards in an open and transparent manner. We also hope that more BP candidates can understand and accept the EOS-BP-DAO BP block rewards distribution framework, which in turn will promote a more healthy and vigorous development of the EOS ecosystem and community.
April 21, 2018 2am in Shanghai