The following describes the possible implementation of a development funding mechanism.
The crypto industry is actively developing. This also applies to Ethereum Classic. In order for the development of the project to continue it is necessary to incentivize developers to take part in it. Having a professional development team also requires a permanent source of funding.
Ethereum Commonwealth, the other ETC development team, adheres to the policy of financial transparency. According to our public financial report, you can see that we did not receive any funding since July 2017 to the end of 2018.
Summarizing the above, I can conclude that a permanent source of development funding is essential for further growth and maintenance of the project and ecosystem. This source of funding should be implemented at the protocol level.
The source of funding must ensure:
- financial transparency - this is ensured by the ability to track transactions.
- constant cash flow which must be used to incentivize contributors to develop Ethereum Classic core OR ecosystem.
- agnosticism - third party contributors must have access to the source of funding even if they never contributed to ETC development before.
The proposed solution is based on Callisto Network Treasury.
Callisto Network Treasury advantages:
- Has a working implementation (geth / parity)
- Already tested in real market environment.
- Simple and secure to implement/rollback.
- Compatible with ECIP-1017: ETC monetary policy.
The proposed treasury system relies on two system addresses that receive funding at the protocol level. The protocol-level funding is a split of a base block reward. When a new block is mined, the reward is represented by three values: miner’s block reward,
Xgoes to the first Treasury address.
Ygoes to the second Treasury address.
(base block reward - (X + Y))goes to miner’s address.
This is possible to implement the described scheme without changing the
base block reward, thus keeping the original 5M20 Ethereum Classic monetary policy unaffected.