[Discussion] [Idea] Transparent accounting for secure node escrow collected since block 139200 (>35000 ZEN)


#1

As an active community member, miner, and secure node operator, I would like to table the “Idea” or “Request” for some discussion and full transparency regarding the planned fate of the 3.5% of coinbase rewards that have been placed in escrow (since block 139200) for secure node operations as detailed in the following roadmap post:

This article details that the software fork implemented at block 139200 included: “Upping the community funding to 12% of block rewards, adding the 3.5% secure node rewards to the current 8.5% pool. These funds will be held in escrow until the secure node network goes live.”

By its very definition, an escrow is “a bond, deed, or other document kept in the custody of a third party, taking effect only when a specified condition has been fulfilled.” If the condition, as stated in the roadmap, is the secure node network going live, then we should soon be seeing the release of the ZEN held in the escrow.

There appears to be a lack of clarity regarding what third party is holding the ZEN and what the exact terms of releasing this ZEN from the escrow are. What we do know, is that the 3.5% Escrow has indeed been collected since block 139200, as it is visible in the block explorer. By my calculations, on Dec 9th, 2017, the block height at that time would’ve put the amount of ZEN transferred to the secure node escrow to just over 35121 ZEN (or approximately 1 million USD based on that same date’s ZEN to USD exchange rate)

With secure node payments scheduled to go live on or around the 15th of December, 2017, I believe some additional clarification to the community is required on how the ZEN held in Escrow will be paid out to node operators.

If a percentage of the escrow has been earmarked for the purchase and operation of the secure node tracking servers and firewalls rather than these costs being covered by the ZEN treasury, then again some transparency is requested.

On inquiring into this matter on the ZenCash discord, I have not been able to find any concrete answers, but have several times been steered towards a forum post related to a discussion surrounding some of this ZEN being used to reward participation in the testing and development of the node software. ( [discussion] Reward participants from Alpha and Beta - secure node test - Phase ). The roadmap seems to clearly state that secure node development was to be funded by the 8.5% of coinbase rewards that are redirected to the ZEN treasury and not by the 3.5% held in escrow.

Thanks and best regards!


#2

It definitely will be transparent.
To be honest I don’t think we have concrete ideas what to do with those funds. Part of it will be used to pay betatesters who helped to launch secure nodes. Other will be merged with DAO funds I imagine.
Any ideas from your end how to make it more transparent? Anything particular you’d like to see?


#3

hey way overdue response on this, but the plan is definitely to distribute the full 3.5% block reward to secure node operators. we have an accumulated balance that we’re figuring out how to issue in accelerated payments once we migrate from mainnet beta to operational version.

Thanks for bringing this up, it was something we’ve punted on an official declaration, so it’s good to think about this stuff publicly and be fully transparent.