The anonymous core team behind Nyzo developed a completely novel blockchain system that addresses many weaknesses of current blockchains and spent almost two years and more than 15,000 work hours doing so. While they hold ca. 610,000∩ coins from verifiers (full nodes) they operated on the network, they have never sold a single coin — on the contrary, they covered substantial ecosystem related and legal expenses out of their private funds. Recently, the core team decided to put the entire development fund, existing since the genesis block, under community control. Each withdrawal from that fund requiring the approval of at least 75% of all in-cycle verifiers. This so-called cycle account currently holds 77,120,398∩.
This proposal suggests a 1-time payment from the cycle account back to the developer account as a sign of the community’s appreciation of the core team’s sustained and strong investment in the Nyzo blockchain system, of the core team’s strong vision, and of their exceptional faith in the small but active Nyzo community.
A 1-time payment to the developer account will in fact get locked and released only slowly according to the previously established adoption-based release mechanism (even the above mentioned 610,000∩ are largely locked at the moment!).
The payment suggested in this NCFP will constitute a development incentive for the core team, rewarding past, ongoing and future achievements, based on actual project adoption expressed as organic transactions on the network.
NCFP 2 addresses 1-time rewards for early external contributions to the Nyzo ecosystem. NCFP 3 addresses a payment to the core team which the system will in fact turn into a slow-release ongoing development incentive. I decided to abandon the previously mentioned NCFP 4 - ongoing development incentives for the core team - for the following reasons:
- The current state of cycle account transactions makes getting a recurring payment right seem quite unlikely.
- The locking mechanism put on the developer account actually does establish an ongoing release mechanism, and a pretty effective one too.
- After close study of previous funding proposals by the dev team, my impression is that the team will be better incentivized by a potential future big reward based on actual success of the system than by a monthly rent. We seem to be in the lucky situation of having a core team that is in this for the long run, not for a short-time rent seeking.
Possible Rationale for an Amount
The act of creating something like Nyzo is in itself … invaluable. At the same time, the Nyzo core team set a precedence of being careful with project funds and of rewarding achievements based on real-world adoption. I personally suggest to reward the team with 7.7M Nyzo, or 10% of the funds that they gave up to the community. Again, to repeat, this amount will not become available to the team quickly, its full release could take years and would only happen if the project finds actual success in the form or real-world adoption and organic transactions.
- Core team handing about half of the development funds over to the community: https://nyzo.co/buildingNyzo
- Core team handing the rest of the development funds over to the community: https://nyzo.co/buildingNyzo2
- Current cycle account funding: https://nyzo.co/cycleFunding
- Sustained development on GitHub (each commit is a new version): https://github.com/n-y-z-o/nyzoVerifier
- Link dev account unlock counter, see very last lines of this page: https://nyzo.co/balanceListPlain/last