We have just submitted our application.
We are currently exploring options and are organising talks with Paul Snow to see how feasible it is to launch an ICO on Factom as it doesn’t have smart contracts yet. We are also looking at the Ethereum blockchain, and integrating Factom to provide immutable audit trails of the tracking data we will be collecting.B. What platform will RewardChain be ICO'd on? Ethereum? Factom? Or?
Yes that is correct. The regulatory environment in New Zealand is generally friendly. We have experience with lawyers and regulators regarding token sales in New Zealand, through a previous project. The Financial Markets Authority (our equivalent of the SEC) is taking an open stance—being careful not to stifle innovation. Note that we have not finalised our legal structure and are exploring different jurisdictions with our lawyers to ensure New Zealand is the best place to launch our utility token sale.Thank you for the application! Some questions to start:
A. If I understand things correctly, you will conduct an ICO with the same company you use to run your Authority Node. This company will be incorporated in New Zealand. How is the regulatory environment surrounding ICOs in NZ?
Thanks for your clarity. While token sales are certainly a grey area currently, this is the same for any new highly disruptive technology, Factom included. It means a very high level of care and professionalism is required, and we are dedicated to ensuring this.Thank you for your responses. I'll come straight out with what I like but my concern:
You have a great team. Savvy business people, avid Factom Community member, and strong technically. I love the tools and applications you're planning to build. But then you drop the bomb that the same company you plan to run the Auth Node and develop these tools with is also going to conduct an ICO. Whether NZ is friendly or not, there's still regulatory uncertainty. There's still huge hoops to jump through not just locally, but globally as well. I have serious worries that the ICO will become a financial, time, and energy drain on your company.
Please alleviate my concerns.
Could you provide us some insight, since you are starting of with 3 fulltime employeesWe have established a comprehensive financial plan to ensure we remain functional and can contribute to and further the Protocol, regardless of the price of FCT and BTC.
Thank you for the questions. I appreciate the opportunity to clarify a number of critical things about RewardChain. Some of my answers to your questions would overlap, and I have tried not to repeat myself. For this reason please read all answers to your non-technical questions together—for the fullest context I can provide.NK01)
A token sale is definitely not the same anymore as the last few years. It takes money first to maybe receive money in the end. Is there a specific reason why you choose to do this from a single company?
Between the four co-founders we have capital we can draw on to fund our efforts. The initial three full-time staff are all co-founders, and are in financial positions to support themselves. We will be taking a salary of 21K USD each, annually. We are reinvesting all other revenue into growth and development/marketing efforts. We will be dedicating serious time to furthering the Factom Protocol, integrating Factom into the solutions we are building, and advertising Factom as a key part of our infrastructure to our prospective clients.NK02)
Could you provide us some insight, since you are starting of with 3 fulltime employees
If you are referring to Schalk, our CTO, having 6 years commercial software development experience and working for Cisco Systems; as of this Friday he will be working full-time on RewardChain.NK03)
You talk about pivoting above. Does this mean your current endeavor which you have been building software for 6 years for, will come to an end? Please explain
The three full-time employees are co-founders, and we all have the financial resources to go without pay. Because of this, we can endure any FCT price and still provide ongoing long-term stability and development to Factom. We see Factom as being an integral piece of what we do at RewardChain, long-term, regardless of how profitable running an Auth Set is short-term.NK07)
You pledge 35% efficiency for one node as well as two. You start with 3 full time employees. Could you explain? At what price does FCT have to be with one node to still be operational?
At the start, we plan to use digitalocean hosting exclusively. We will use their provided cloud firewall to setup the inbound/outbound rules.NK04)
Could you elaborate on the type of firewall? Could you elaborate on the open SSH ports?
Here is our current thinking on this:NK05)
In your architecture picture you are mentioning automatic monitoring of attacks. Could you elaborate on how you determine whether a node is under attack?
While we haven’t developed the automatic brain swapping yet, to provide some context, our approach was to have another application (that we would develop) running on each node which would expose a RESTful API for monitoring information on the nodes and also for “doing” the brain swap.NK06)
In you architecture picture you are mentioning automatic brain swapping. Could you mention either potential positives and/or negatives with having that automated?
Digitalocean provides SSD backed block storage volumes that we can attach to our droplets (VPS). We would be using 4 disks for the raid 10 setup.NK08)
You state a raid 10 setup and separate disks for OS and Data on a VPS. Could you elaborate on the amounts of disks involved and the storage type employed by the cloud provider?
Thank you very much. I’m more than happy to engage with you on your concerns about the token sale, as I do truly believe it is a positive for Factom. I understand concerns related to risk—and we are being extremely diligent in protecting RewardChain with expert lawyers and engaging with the relevant regulatory bodies globally. We will not undergo a token sale if we believe there is any significant risk to any of us personally, RewardChain Limited as a company, or Factom. We will also not undergo the token sale if we do not continue to believe it will have a meaningful benefit to Factom.Hi everyone. This was easily one of the most thorough applications we've had. Thank you. You obviously have put a ton of time into it as well as being a part of the community. Another thank you. Not a lot left for me to ask, as David and Niels did a nice job. I will go on record though and share the same concerns as David did about the ICO.
Thanks for your questions.C. Let's say you get an Authority Node. How it performs will be easy to monitor. However, as part of your campaign you also discuss additional development work which is important since your single node Efficiency is set at 35%. The Standing Parties will likely want to see what progress you're making since it was part of your campaign. My questions are:
1. How would you communicate with the Standing Parties. Examples would be blog, twitter, Discord, Reddit, etc.
2. What would you communicate and how often?
3. What metrics should be used to gauge your success?