Cardano Sustainability and IOHK contract

Charles has said multiple times that they are under contract through the end of 2020. In the event that the roadmap has not been completed, then they will continue working beyond that date. The ADA funds that belong to IOHK are not to be used for developmental funding. Those ADA belong to IOHK and act as an incentive for them to build a robust and sustainable product. Once the current roadmap has been fully implemented, then it will be up to the community to utilize the on-chain voting mechanism to fund the next round of protocol upgrades. These upgrades will be funded by the treasury.

The $62M raised was the value of the BTC at time of sale. Since the last trench was completed in Q1 of 2017, it’s very likely that the BTC were worth $1-2k each. It’s very possible that IOHK sold much later and actually has 100’s of millions in reserves. Nevertheless, that is not our business. The only thing that ADA holders should be concerned with is that IOHK is able to fulfill the contract to which they agreed. As of now, it looks like they clearly have ample funding to do this.

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@Chess, I think this could address part of your questions…

Thank you for the videos. Let’s dive into it:
In the first video Charles said: “if the treasury system exist we will submit a ballot asking for aditional funding and the community will get to decide that.

In the second video, Charles said: “by 2020 we will have a fully operational treasury and we’ll stick around until that’s done so if it bleeds in the 2021 we’ll keep working untill that’s done and at that point there’s going to be specifications, Cardano improvement proposal process, competing clients written in different languages by different development teams…IOHK would love to continue doing research and engineering but you the ADA holders will be able to do that choice. So we’ll submit funding proposal to keep the contract going but you get to decide whether that happens.

So I believe this solves the main question. Thank you guys.

Cardano will have a new roadmap after IOHK summit. I was wondering if eventually they would announce the continuity of the IOHK contract after 2020 to finalize the treasury system, but they’re calling it “Cardano 2020 vision”…Regarding the treasury, I’m curious as to what will be announced. Any thoughts?

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Sebastien said on Twitter there is already a private testnet to Treasury System.

I think there is a paper on the subject too:

The topic should be sharpen until the Voltaire phase.

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What would be the funding proposal?

Obviously there is no money from treasury at the beginning unless the 640M adas belongs to it?

I believe IOHK will not do a funding proposal untill the community has enough funds to decide. This is why Charles mentioned entering 2021 working at Cardano. The community will vote when it has the powers (system and money) to do so

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I think developing Cardano is in best interest of IOHK, so they will be still motivated to finish the product even without a contract.

However, no massive adoption = no transactions = no money in the treasury

I remember around 120K ADAs were burnt last year for collecting transaction fees.

Just wondering how should/will the community have " enough funds" to contract IOHK or others? While the most possible funds, the 640M ADAs from Cardano Foundation, right now is also controlled in IOHK’s hands. Isn’t it a conflict of interest?

Sorry, I’m kinda new to this community governance and sustainability issues, things just really don’t make any sense to me.

When staking starts, a tax on all rewards would go to “treasury” too… :moneybag:

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It is hard to anticipate these kind of factors. Who knows if 120K ADA won’t be enough ? For doing what ? Might be, might not. Best case scenario is that IOHK delivers a strong enough protocol and run untouched for a couple of years. Let the dust settles and see where we want to go from there. Who can predict the price tag of ADA, or the daily usage of the platform in 2 years from now ?

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LOL!!!

Ya, hopefully 120K ADA can worth 12 million USD soon… :laughing:

Does not need to. If I got it correctly, composability and good design ab initio means cheaper add ons down the road !

Where’s your trust?! :wink:

Seriously though, your points and more have been on my radar for a long time. Anyone investigating, monitoring, and discussing issues surrounding the personal and business best-interest of Cardano’s ‘developers’ deserves community respect and encouragement. Everything should be analyzed eg. what’s said, what’s done, contracts, legal and regulatory, and future choice probabilities.

People say trust is hard, I disagree. We are completely trustworthy to act in our own best interest, which at best is approximated from past choices vs past statements, and an objective cost benefit assessment of present and future options.

We can potentially lower our risk if we trust from verification vs “Trust but verify”

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I read/watch/listen to everything regarding IOHK/Emurgo/Cardano & their partners, for what it’s worth…you can bet your ass Charles, IOHK & Emurgo are “in it to win it” - they’ve put their hearts & souls into developing a superior blockchain platform that is changing the industry as we speak…there’s not a chance in hell they won’t see Cardano through the completion of the roadmap; hopefully, IOHK will be the development team beyond the roadmap as well.

Just my 2 cents worth - have a good weekend y’all. :wink:

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“for what it’s worth…”

It’s worth a heck of a lot! Not ever my intention to speak for anyone, but if your current assessment’s a result of objective research - and it looks like it is - it’s infinitely more valuable to me than the faith-based, circle-jerk variety.

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“And if you think he might be overruled on that by others within IOHK, you don’t know much about IOHK.”

I could be wrong RobJF or perhaps there was no intention, but it looks as though your response is a mild version of, shoot first and ask questions later. I don’t sense the typical FUD agenda from Chess . What I do sense is someone pursuing answers to obvious and objectively critical questions which by there nature, effect us all.

So, I want to step-in in defense and support of anyone who by their actions assist me in protecting and asserting my best interest.

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Trust is against basic survival instinct and potentially the biggest mistake a being can make. You should not trust anyone in your life. And I mean anyone, even your parents. Since I stopped trusting people I do not get surprised by any betrayals or scams - I’m already ready for them.

Don’t “trust and verify”. Verify and then verify again and be ready to employ countermeasures. Always calculate the risk and have backup plans.

Investing in anything should never be based on trust. People who do that get hit the hardest in the end.

Fundamentally, I think we haven’t any differences wrt trust, in this context anyway.

I reversed the syntax of this Reagan popularized, very old Russian proverb: “Trust, but verify”, to read verify, then trust. The point I was trying to make (perhaps not well) is that in many circumstances - this being one of them - trust is impossible because verification stops only when risks no longer exist, and of course, risks always exist.

Thanks for providing a reason to clarify.

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If that is the case I think we are on the same page. Thank you for the clarification.

Charles talked about extending the contract at the last AMA (23:40): https://www.youtube.com/watch?v=1zR9gMSIZKs&t=1422s

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