Transperency memo and what it means


#1

This transperency memo that was included with the terms of the ico.


It says that DLS is not to receive any payment until 3 months after a successful launch, being 8.5% of the ico funda + 10% of the tokens. Can others read this memo and tell me, do you conclude that no funds are to be disbursed whatsoever to fund development until 3 months past launch? This memo does not cover any other monetary responisibilities of the foundation, were there any other memos attached to the ico terms that did? This agreement seems to me incredbly one sided in favor of the foundation and I have no clue why Arthur would agree to such terms. The biggest question I have is, if these were the terms why would Arthur expect help from the foundation during development? or am I missing something? Thoughts?


#2

I posted about this possibility here:

I was questioning whether or not the actual agreement was that DLS wouldn’t receive funding until the mainnet plus 3 months was complete.

Guido sort of implied that the funding is released with milestones, so drake, you could be right.

If so, it means the foundation are probably doing the right thing by restricting funding.

It’s a very bizarre situation.


#3

If this is true, why on earth would Arthur

  1. agree to complete development without any ico funds and
  2. be expecting help from the foundation during the development phase

The most single troubling thing I’m seeing is a complete lack of specific responsibilities of the foundtion for this project. It seems they have none other than to pay DLS 8.5% of the ico and 10% of the tokens 3 months after launch.
Legally speaking I don’t see Arthur has a leg to stand on. It’s lke he failed to read the contractual terms of the ico himself, so I am very confused.


#4

Something interesting to note. I don’t think that DLS (Arthur and Kathleen) have complained that they cannot finish the product without the funding, but they have complained about the lack of funding on principle. (To show how the foundation has been a lame duck.)


This part of my post is based on the assumption that the agreement really is “DLS gets paid after 3 months of stable mainnet” then there are some following possibilities:

A) It was a miscommunication, bad lawyer advice, misunderstanding, etc… DLS (Arthur and Kathleen) had no idea of implications of “no funding”. Now they need cash to complete the project.

Assuming that DLS (Arthur and Kathleen) knew about the no funding and understood the implications, we also have the possibility that:

B) DLS (Arthur and Kathleen) thought that they had the money to fund development themselves and are running low on funds, hence why they have brought up the question about not being funded.

C) DLS (Arthur and Kathleen) knew that they couldn’t fund the project so thought that they would get the ICO complete then strong arm the foundation into paying for development work.

(“C”) is sort of unlikely as you’d imagine if they needed funds that badly they would have directed a few million into DLS on day one.


I personally think that that DLS (Arthur and Kathleen) made a mistake with their agreement.


And yes I think that you’re right about the foundations responsibilities. It does seem that the only agreement is to DLS (Arthur and Kathleen) after mainnet.

If so this explains why Gever wants to stay on board as legally once he has paid DLS (Arthur and Kathleen) he will be able to use the funds for anything he wants. (Is that true?)


#5

The bottom line is even if the foundation is in the right legally to withhold funding until 3 months past launch, they should immediately release funds to help development. Their only listed purpose is for the progress of the project, and from what I’ve seen they have completely failed.


#6

For me it is different, but maybe my understanding is incorrect.
I thought that this payment of 8.5% + 10% of tokens was only a payment “if” network launch. Otherwise, foundation has to pay day to day bill (salary, office etc…) to DLS


#7

And I assumed that 8.5% was based on USD funds at end of ico. It’s a whole lot more now with Bitcoin price soaring.