Edgeware's Unusual Lockdrop: Get Tokens Even With Frozen Funds - Ep.077

Transcript

hi everyone welcome to unconfirmed the podcast that reveals how the marquee names in crypto are reacting to the week's top headlines and gets the inside scoop on what they see on the horizon I'm your host Laura Shen you may have heard I am doing a survey we want to know how do you think we can make the show better how would you like to see Unchained and unconcerned to expand if you could just take a moment and go to surveymonkey.com slash are slash unchanged survey 2019 that's surveymonkey.com slash are slash unchanged survey 2019 your answers will be a huge help to me and my team here also those who answer the survey can enter to win one of five of free casa bitcoin lightning notes plus a free year

of causes gold membership including a multi six security app for iphone and android a treasure hardware wallet a casa Faraday bag and 24/7 support those of you interested in learning more about Casa or about protecting your Bitcoin investment generally should check out my interview with CEO Jeremy Welch thank you to Casa for donating are you ready for global cryptocurrency money laundering regulations cipher trace secures the crypto economy with powerful AML tools for exchanges crypto businesses and regulators today's guest is Dylan Chen CEO of Edgware welcome Dylan hi how's it going good good I just traveled a little bit and I'm so glad to to be at home but

anyway the show is not about me so why don't you tell me what does Edgware do yeah I guess the the tagline for edge where is it it is a polka dot smart contract platform and I guess like along those the three legs it kind of stands on it is wasum smart contract platform so you have to you can write in rust C++ assembly in any language you're comfortable with that compiles down to two laws them to it's built on polka dot and three it's on chain governed and to see the network we're doing this thing we're calling the lock drop see you lock your theorem and you can get Edgware tokens kind of in return and so talk a

little bit more about how the lock trap works yeah so I just like to preface this a little bit we we decided on the lock drop kind of like in November of 2018 when in her first like conceiving of the project and the reason for that is one we just needed to decide on a way to to seed like a proof of stake network with like what we felt like would be like a healthy ecosystem and Nico was obviously out of the question an airdrop didn't seem like the right way to do things so we needed kind of like a happy medium to have people put a little skin in the game but still have like wide participation and so the lock drop was kind of the mechanism we chose so the lock drop basically you

time lock your etherium you basically send your etherium to a smart contract it creates a small individual walk contract and you can lock for three six three six or twelve months you can redeem your etherium at the end of that process and you also basically the etherium that you lock up is counted towards this lock drop and so you can claim essentially Edgware tokens at the end of this whole Chanin yeah that's that's the locked up in the nutshell and if you lock up for longer you get a little bit of bonus Edgware token so for three months you'll get like basically the face value of aetherium for six

months you'll get 30% or sorry a hundred thirty percent of your aetherium and if we're locking for twelve months you'll get two hundred twenty percent of your theorem essentially in Edgware token yeah that's the kind of process in a nutshell there's a few bells and whistles but maybe I'll just pause there and why don't you also talk about one of the last ways to participate in the log shop which is through something called signalling yeah definitely again we we basically want to widen participation on on Edgware and so we kind of like what is like scratch our heads a little bit and thought about a way to like lower the bar is even further if you can't

lock up for three months we know that that can be out of the question for some people we felt that adding this signalling option would be the right move so basically what you do is you you sign a transaction you ping the the lock drops more contract with an address it can be your address that you're basically sending the transaction from or you can essentially essentially send a transaction on behalf of an account or contract that you created and the reason for this kind of second option is basically because there's a lot of multi SIG's that people like hold funds in that kind of we wanted to be able to participate in this process there's one other kind of like wrinkle which are maybe two

wrinkles basically is if you signal instead of like a bonus you'll get like a deduction since you're you're not really putting up any opportunity cost of your etherium and so instead you'll get 20% basically of the face value of whatever gets signaled and then the other thing is you'll get 25% of the edge for tokens on network launched September 15th and then also 75% a year later essentially so southern September 15th 2020 yeah that's that's the the other options participate it's kind of the the lowest hanging fruit so to speak and why did you decide on the lock drop as your way of distributing

the token as opposed to you know for instance in ICO yes definitely so well I guess we won is like the larger question of like thinking about what we should actually be looking at in our crypto projects we really wanted to build like a healthy ecosystem and we we know like one of the biggest measures as that is like number of addresses that I actually have like any amount of token and that's like especially small for projects in their early days but the lock drum process is actually going on right now it's started June 1st and if I remember correctly I think we have 2 over to 2100 individual

transactions that of Benson and so that corresponds to around 1600 different addresses that that have participated in this process and that's only in the first ten or so days and so you know over the kind of three months that the block drop process is going on we hope to have like a larger like set of stakeholders versus an IC o---- that might have only had maybe you know one or two thousand people participate we felt an open process where people I guess aren't investing money felt like the right thing to do is there anything else maybe I mean we didn't really need to raise any other funds since we're equity funded and the edgeware network

is kind of like being hopefully launched organically again through this process yeah that would be probably the last reason as well and how do you think that doing the lock shop as opposed to an IC o---- will affect the distribution of the tokens other than just perhaps making it available to or other than just having more people participate in the sheer numbers yeah it's a really good question I would say that it would we hope it incentivizes a different set of participants to come in we I guess through the lock trial process you have to specify a specific Edgware address like the new address on the new network that we're helping launch and basically

we do that because we want to have people that are actively participating so whether they be developers core network developers to app developers like governance enthusiasts who want to you know run on chain govern experiments on edge where um or just like end users versus like a speculator who who might be thinking more about I guess like the future value of Edgware and so hopefully the lock drop process drives the the kind of like the former so active participants versus speculators yeah that would be that would be the largest hope we'll see it kind of like as the kind of like network place out I think I think that's something that you can only really tell as time goes on can you or

anyone else use the East that's locked up no that's a that's a it's it's something that sometimes we talk about internally but so the lock drop process basically the funds are time locked and only you can only you the contract are sorry the ascender can redeem or use the etherium you have the reason for that is kind of we we thought we let's go with like the most plain vanilla option it's obviously the lock drop is kind of experimental in in its own right and so any other bells and whistles like we thought like could come and probably a future network although I think I mentioned this a

little earlier or that we had some community members like come up with like creative ways that the funds might be used in a future lock drop potentially like opening up like a unis whap or like adding to a liquidity pool and kind of like earning a little bit of I guess interest so to speak and then funding potentially like a Treasury for for that new network that's being spun up that could be something pretty fun to play with shout-out to token token economies for that idea we're gonna discuss how Edgware fits into the overall ecosystem in a moment but first a quick word from our fabulous sponsors ready or not the Financial Action Task Force anti-money

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interested in learning more about Casa or about protecting your Bitcoin investment generally should check out my interview with CEO Jeremy Welch thank you to casa for donating again the URL is surveymonkey.com slash are slash unchained survey 2019 go there now to give us your thoughts on the future direction of Unchained and enter the giveaway back to my conversation with Dylan Chen of Edgware so you mentioned for signalling that people will receive a quarter of the tokens that they're owed upon network launch and then the the remaining three quarters a year later and so when did the other locked up participants receive their tokens

they received their tokens on the network launch date as well so they just get a hundred percent of like what they should be out essentially so September and then there's one there's one subset of people we didn't mention which I find so fascinating but basically the people who have funds frozen in the parody multi-sig while it they can participate in the log drop so how does that work yeah so one I would like to definitely bring up so we're looking for active participants and people who we feel like won't bring a lot of value to the ecosystem and so we feel like people who definitely participate in in that

previous I guess a process like should also be able to appreciate participate here I would also like to note that like the that's only one example of people that are able to participate in this process we we kind of like instituted something called a generalized lock so people who basically can send a signal transaction and then if we look at the the contract address that they might have signaled on behalf of if they if you can't send a like a message or like a transaction that has like like in each value greater than zero basically what that effectively means is like you you're not

able to move your theorem for like the the period of that lock process then we will count it as a lock versus a signal and so one of those would be the parity multi-sig classes like wallets that were kind of created and then other kind of like unrecoverable quote unquote funds are also able to participate yeah so we felt like they would bring a lot of value to the new network because they they certainly have a lot of skin in the game and like have have to know what how early kind of we are in the evolution of like I don't know crypto networks are we are yeah I mean there is kind of a lot of money locked up in the parity frozen

funds it's I think like 587 wallets and they're holding what in dollar terms is more than a billion dollars worth of ether so the you know I think that does open up a lot of people who maybe have ether I don't know if have as the right verb but at one point had or or at at one point had access to and no longer have access to their ether but but they can at least sort of participate in the ecosystem in another way so let's then talk about what it is that people will do with the tokens you mentioned that Edgware is for governance so once people

get their tokens what can they do with them yeah so so of the so I think we we've had like about 250,000 eath locked in the first 10 days and so this process running over the whole summer and so that continues to grow and I want to say like 660,000 signaled as well and so hopefully that again knock on wood people continue to participate in the process and so once all these people till the end of the summer August at the end of August get and like September 15th the edge fur Network launches basically we'll have a fully functional

smart contract platform so validators will be able to stake or bond for their own validator to emit new blocks people will be able to delegate to these validators and like earn rewards in terms of edgar token people will be able to pay for essentially gas or transactions on the network and like for functioning of any smart contract and they'll be able to vote and basically allocate more funds from an edge we're down it's like one wrinkle is that fifty percent of the initial block reward in the first year will be allocated to a

Treasury and so it should be like pretty sizable in terms of like raw like Edgware or sorry it's like Edgware tokens and so it should be like a pretty fun experiment in terms of like governing and a non jade governance and so since you're gonna be functioning as a pair of chain on polka-dot how do you see it we're fitting into the overall ecosystem yeah I guess like one thing I definitely note is I feel like the the ecosystem has been really supportive from like different pair of chains that are active or coming online now like chain X out here in China I'm actually

here in China right now so I just like shout out but also the fact that like there's there's a bunch of other projects like focus it poke ask an enzyme spec well like other projects that kind of support the whole ecosystem and so for for Edgware specifically a lot of the pear chains that we've kind of seen are kind of like specific so they could be a Dex like chain chain X specifically or or another chain like you know air gum is gonna build a doubt chain specifically and so within the kind of like polka dot ecosystem there still we feel like should be like a general-purpose more contract platform where people can still

kind of like have the playground that we kind of know and love from aetherium and then interact still with the larger kind of like application-specific pair of chains that's kind of the the role we we kind of hope we can play in the ecosystem it's still pretty early in life cycle polka dot God willing we'll kind of launch at the end of this year and so we're kind of excited for the ecosystem to kind of form around that and so Edgware senses a governance chain will those tokens then be usable for performing any type of governance actions on other pair of chains it would be it would be really cool for that to

happen and so actually one experiment that's kind of being run right now one of the community members Garret he's running a project or a dhow essentially on edge were called our node basically it's kind of like Moloch built on edge where and right now kind of donations are being accepted in Edgware token and dots and so I think what will happen is that dowel will run on edge row and basically it could send funds to a different pair of chain kind of as like the first step and so that would be that'd be a really exciting thing and so like basically you know any any edge were smart contract like should be able

to interoperate with any other smart contract and more specifically doused in general and so that's kind of like I think the the top way that edge were and like the edge road token holders would be able to interact and help govern like any other pair chain interesting all right well I guess we'll see how the lock shop goes and whether or not this kind of becomes a new way that people try to distribute their tokens I'm actually but you know before we go just one last question so are there any issues regulatory wise regarding the lock shop it looks like we are preliminary in the clear I think since we're not a let me

let me let me mentally refresh real quick since we're not taking it essentially any investment we're not using the edge vert or sorry the the etherium itself to fund further development the network we we think it like it should be fully functional we've run several tests that's you can build from our contract so you can validate do all these other things and like yeah so it looks like we're we've kind of are in the clear from that perspective yeah okay we'll see ya because the airdrop issue the sec was making noise about that so alright well as so much regarding that topic i think it remains to be seen how that

will play out yeah um but thanks for coming on the show it's been great having you a nun confirmed no thank you for having me it's always a always a pleasure thanks so much for joining us today to learn more about the topics we discussed to be sure to check out the links in the show notes of your podcast player if you haven't yet taken the unshaved survey or enter to win a free casa note do so now at surveymonkey.com slash are slash unchanged survey 2019 and confirm this produce immediate lauren with help from factual recording anthony u n-- daniel and richest ROFL IDO thanks for listening [Music] you [Music]