Attempts to restore the reputation of cryptocurrencies Siacoin with a market capitalization of $200 million after charges in the impact of large companies into chaos amid accusations against the firm by the developers.
On the agenda — the behavior of developers Siacoin and their motivation behind efforts to alter rules that they support the blockchain. Under the proposals put forward last week, the developers, including the Creator Siacoin David Viorica (David Vorick) submitted changes that will not allow big miners to make a profit through support for the distributed storage Protocol.
Simply put, they want to implement fork Siacoin to the devices offered by the Chinese company Bitmain and its competitor Innosilicon, are unable to work online. Previously, the team of SIA refused to hold that fork.
Although such efforts were greeted with enthusiasm in many other blockchains, in the case of Siacoin there is one problem – mining equipment that will continue to be able to work in a network, sold by the company, controlled by developers Siacoin.
Indeed, the mining company Obelisk was founded by Viorica in 2017. In June of this year, Vorik later announced the creation of a service called “Launchpad”, which Obelisk will be able to build mining equipment for a wider range of blockchains.
But it did not change the competitive environment for the company. Miner Obelisk SC1 was already defeated in the market competing offer from Bitmain in January. This set the stage for the June statement, and the mood in the community was tense, though, and optimistic. As long as the Obelisk had not missed the deadline for production of the equipment in July.
After the company has collected $22 million users Siacoin for the production of devices for mining and has not fulfilled its promises, the situation began to deteriorate and turn into a mess of legal threats and proposals to implement samostoyateljny fork of the blockchain. The situation is so tense that even Vorik said that he did not know “how things will develop”:
“Now chaos, and the situation is complicated. We are trying to do the right thing, but we’re not sure how best to proceed.”
And it’s not just about how to regain economic influence on the network. Many sources in the community Siacoin noted that the current situation is a response to growing legal pressure, as mentioned by Vorik in their statements.
At the moment we know about two community representatives who have declared that they plan to take legal action against the Obelisk. In both cases, the claims based on the fact that the company was unable to release his miner SC1 to 30 July, as promised.
Third-party developer under the pseudonym “RBZL”, which previously was responsible for maintaining websites and web tools related to Siacoin recently ceased participation in the project, stating that the controversy surrounding the Obelisk in fact has slowed the development of the platform.
Now RBZL is going to file a lawsuit against the company and explains that the Obelisk knew that you will not be able to meet its obligations under the terms of issue of the equipment. RBZL said the company was “proud and arrogant”, saying that the behavior of the company was a “slap in the face” buyers Obelisk.
Comments on Reddit suggest
that was taken
appropriate marketing efforts when Vorik said that users “will be eligible for a full refund” in case of violation of terms of release of the device.
“Not in my best interest to see how the draft Sia is sinking, but they did everything possible for this perspective,” said RBZL.
RBZL also shared screenshots of correspondence with Viorica, in which the founder of the project, it was recognized that the Obelisk could not offer a refund due to lack of funds. Obelisk, fully funded by the sales of its devices for mining, has already spent all the money on production.
Referring to a comment on Reddit, Vorik acknowledged that his statement may affect the fate of the company. “This comment can be enough to kill us in court. And when I say “kill us”, I mean a dead company,” he said.
Nebulous and Obelisk
Compounding the situation is that any lawsuits against Obelisk can affect Nebulous startup, which currently employs developers Siacoin.
In the same correspondence Vorik noted that “the Nebulous and Obelisk is very close,” and warned that in case of litigation “rather, the court will order Nebulous to indemnify, and the company has no money for it”.
Vorik confirmed that the messages in the screenshots are real, but said that he “speaks only for himself and to share his fears with the moderator and leader of the community”. He requested that the reports “are not interpreted as an official statement of the company.”
Another user Siacoin under the name “Bloqtwits” wrote that a group of claimants who purchased miners Obelisk, and are now going
to file a class action lawsuit against the company. Bloqtwits as RBZL, refused to share more information about the lawsuit, citing the advice of a lawyer who believes that it can prejudice the case.
Some of those who are waiting for the damages, I believe that organizations that support the Protocol Siacoin, have more than enough funds to pay. Only Nebulous is the repository for so-called “Siafunds” — part of the smart contract Siacoin, which is designed to stimulate the development of Siacoin.
Trader Siacoin named Ken Scott bell (Ken Scott Bell) estimated that the Fund is approaching the volume of $56 million or has already reached this figure for 2018.
“I believe that these people actually are not looking for justice, and instead are trying to obtain legal access to Siafunds Nebulous through a class action,” said Scott bell.
Support the developers
This is not to say that it is not attached no effort to support developers of the Protocol.
Bell, for example, leads one of the factions in the community Siacoin, which promotes the idea of “softforce activated users” (UASF) — changes that will shift the users to choose the future path of the network and making decisions about changes in the code.
Bell said that the proposal aims to find a way to protect from the growing legal pressure Obelisk and Nebulous, which he sees as an attack on the network Siacoin. And he does it because Nebulous, according to bell, is vital for Siacoin. If a lawsuit against the Obelisk pull on the bottom and Nebulous, it could have a devastating impact on the network.
“The network will no longer be any developers, key community members will not be able to work in a bankrupt company and will be forced to leave. Then everything we put our efforts will come to naught,” said bell.
The proposal, published two weeks ago, said that once the mining device will be released, Obelisk must provide miners the right Obelisk to support the network for three months, then other miners will again be able to join the Protocol.
“Unfortunately, the only way by which we can get out of this problem is to indemnify those who threaten lawsuits. I’m sorry to say it, but so it is,” bell said.
However, other factors indicate that this situation may be delayed. First, Obelisk stated that it started shipping their miners on Friday and plans to send “hundreds” of devices this week.
At the same time Vorik said he is skeptical about the underlying efforts to change the Protocol (Obelisk Nebulous and did not make statements in relation to these proposals).
While Obelisk has agreed to produce a new algorithm that compartment would be competing miners, Vorik said that he disagreed with the efforts of the group UASF, allowing one to open the network for other miners after a short period of blocking as specified in the proposal.
“If we intend to take active measures to oversee our mining community, the goal will be to create a healthy, open decentralized mining ecosystem,” said Vorik. “So, to me, makes no sense at first to block other miners, and then again to allow them to work online.”
In addition, there are uncertainties — for example, the threat of class actions is still relevant. Vorik said that at the moment he is careful, focusing on the delivery of equipment and kept from rash steps that could set a precedent in the management of bloccano.