Eden ƒractal and Genesis ƒractal inspiration
Also many great parts about ZEOS independently of the fractal here as well. It may be helpful to make pages for both ZEOS and ZEOS fractal
The launch of the ZEOS DAO
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7 min read
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Oct 28
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And the subsequent reclamation of exchange tokens…
Shout out to Horus for this awesome sticker set!
The five founding members of the ZEOS DAO — aka the ZEOS Fractal — successfully held their very first meeting today. At this meeting an extremely critical decision was made immediately: All members of the DAO unanimously decided as their first official action to reclaim the ZEOS tokens of two centralized exchanges: big.one and kraken.com.
Since under normal circumstances such an action would lead to a certain loss of confidence in the ZEOS Token, these actions require a thorough explanation of the circumstances that led to this decision.
Recap: The ZEOS Airdrop
On Christmas Day 2021, the ZEOS token was airdropped directly into the EOS accounts of all PEOS token holders based on the PEOS token distribution at that time. Everyone who held more than 0.1 PEOS tokens on Christmas Eve, Dec. 24, 2021, received 4.76 times as many ZEOS tokens on the following Christmas Day. There was only one exception: All exchange accounts as well as the account of block.one and the accounts of the PEOS developer team were excluded from the airdrop. All resulting surplus tokens were distributed proportionally to all other EOS accounts as a Christmas present.
Thanks to the great help of the ZEOS community, the following list of accounts had been compiled, showing all the accounts that have been excluded from the airdrop:
However, there were two exchange accounts that did not end up on this exclusion list (for different reasons): “pxneosincome” (big.one) and “winterishere” (kraken.com).
Big.one
This one was controversial from the beginning. Without publishing any private messages between me and representatives of this exchange, the story goes something like this: During the PEOS Airgrab phase (long before ZEOS was founded), big.one promised its users that they would be able to claim their PEOS tokens through their exchange. However, this was never the case. Apparently, they forgot to claim their PEOS Airgrab themselves, so the PEOS tokens of their exchange were lost — and so were the ones of their users.
What was confusing for many big.one users, however, was that instead of openly and honestly informing their users about the facts and closing the corresponding PEOS-related markets, it was still possible to deposit and trade PEOS on the exchange, but not to cash out.
When the ZEOS airdrop was due, some users apparently asked for their PEOS tokens, but big.one was unable to deliver them. This led to some displeasure within the EOS community regarding big.one. Long story short: To smooth things over, I agreed to a 1:1 airdrop of PEOS to ZEOS for big.one users, so that the exchange could satisfy their frustrated users — despite the fact that I had nothing to do with the whole PEOS drama. My only concern was to reach as many PEOS privacy enthusiasts as possible with the ZEOS airdrop.
Unfortunately though, it was still very intransparent what happened with the ZEOS tokens of big.one after the airdrop. Instead of dropping them directly into the hot wallet of the exchange, I asked for a list of the affected EOS accounts to be able to drop the tokens directly into the accounts of the users. However, this could not be issued to me by big.one. In addition, in the following weeks after the airdrop, some users were still unable to claim their ZEOS tokens on the exchange.
Eventually, the ZEOS token itself was delisted from the exchange due to (quote) “there is no one trades for months”.
In hindsight, it was definitely a mistake to get involved with this exchange. Especially without having any transparency regarding the internal ZEOS token distribution. Their shady activities regarding PEOS were more than dishonest to their users. The ZEOS airdrop through the exchange was absolutely intransparent and some users have not received their tokens until today.
Finally, after a few more months, they even closed down all ZEOS markets.
Due to all these reasons plus the negative sentiment within the community due to the shady practices of this exchange, the founding members of the ZEOS Fractal have decided to reclaim all the remaining ZEOS tokens from this exchange and give them to the treasury of the ZEOS DAO.
Kraken.com
This is an interesting case: The EOS account “winterishere” is currently the largest holder of ZEOS tokens and many users have speculated whether this is indeed just a normal EOS user account, or possibly an exchange account after all? The founding members of the ZEOS DAO got to the bottom of the matter and were able to identify the account as a cold wallet of the cryptocurrency exchange Kraken. Here are the results of our research.
An analysis with the tool “EOS Detective” reveals the following connections of this EOS account with only three other accounts over the past five years, since the launch of the EOS Blockchain:
Source: eosdetective.io
While the link to “Tokenika” — a Polish blockchain software company — is not entirely clear, all other links lead directly to the exchange Kraken.com. The account “geztgnjqgene” is an EOS genesis account. An analysis of this account in turn shows the following links:
Source: eosdetective.io
At this point it is already obvious that the account “geztgnjqgene” is the genesis account of the cryptocurrency exchange Kraken. This becomes even clearer when looking at the very first transactions of all these three accounts:
Source: bloks.io
Immediately after the launch of the EOS Mainnet, several million genesis tokens were transferred directly to the hot wallet “krakenkraken” of the Kraken exchange. Only a few days later, all remaining tokens were transferred to the exchange’s cold wallet “winterishere”:
Isn’t it a cool name for a cold wallet…? ;)
The very first transactions of the hot wallet “krakenkraken” look like this:
Source: bloks.io
Apparently, the deposit and withdrawal mechanism of the exchange was first tested with the exchange’s hot wallet using the genesis account “hezdimbvgyge” and small test amounts, as the transaction memos reveal. Subsequently, the wallet was then funded with large amounts from the genesis account. The memo “kbrp” reveals that these are not deposits of a normal exchange user.
The first two transactions in the history of the account “winterishere” look like this:
Source: bloks.io
After a small test transaction, the cold wallet was directly funded with millions of EOS tokens from the Kraken genesis account.
There is no doubt at all for the delegates of the ZEOS DAO that the account “winterishere” belongs to the exchange Kraken.com and therefore should never have received any ZEOS tokens in the first place. It was therefore decided that all ZEOS tokens of this account will also be reclaimed and transferred into the treasury of the ZEOS DAO.
Conclusion
Both exchange accounts — “pxneosincome” and “winterishere” — should never have received any ZEOS tokens in the first place. However, the fact that these accounts nevertheless received considerable amounts of ZEOS tokens by mistake allows the ZEOS community to build up a treasury of more than 100 million ZEOS tokens by reclaiming those tokens without having to inflate the token supply.
We are aware that such actions are highly controversial. However, we ask the critics of this decision to consider that neither of these accounts were qualified to receive any tokens at all under the ZEOS airdrop rules. While the Kraken.com case is relatively straightforward, the Big.one case is definitely more critical. If you are a Big.one user affected by this token confiscation, we specifically request that you contact ZEOS DAO representatives so that we can investigate your case individually. Whatever the outcome: In no case will we return any ZEOS tokens to the shady exchange Big.one, but only directly to the affected users personally. We respectfully ask for your understanding.
Join the ZEOS DAO today!
The founding members of the ZEOS Fractal welcome dedicated newcomers! We are looking for like-minded DAO members to help us grow the ZEOS ecosystem. Are you a developer, a content creator or just a freedom loving privacy & DeFi enthusiast? Then we want you to join the ZEOS DAO! Sign up with us today by filling out our very simple registration form. However, think carefully about what you enter there, as you won’t be able to change your information afterwards.
Source: dao.zeos.one
For more information about the governance concept of the ZEOS DAO, check out the following two articles:
We look forward to welcoming you soon!
Introduction to the Fractal app
ZEOS fractal
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7 min read
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Oct 17
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ZEOS fractal members — art by DALLE-3
This article is structured in the following way:
1. Purpose of the Fractal app.
2. Purpose of the ZEOS fractal.
3. Main features of the Fractal app.
Purpose of the Fractal app
The Fractal app enables communities on Antelope networks to start fractals.
fractal is just a type of a DAO that at its core has governance system based on fractal democracy.
The app is based on research and experimentations conducted by fractally, Eden and AW communities.
The first community to utilize the Fractal app will be ZEOS on the EOS mainnet. Below is an overview of the app in the context of ZEOS fractal.
You can learn more about the rationale behind the Fractal app from Matthias Schönebeck's article on Pseudonymous Fractals.
Purpose of the ZEOS fractal
There are three main purposes for the ZEOS fractal:
1. Decentralize the ownership of the ZEOS smart contracts.
At this point ZEOS eco-system has 8 contracts that are all controlled by Matthias the founder of the project. If the keys controlling the contract are seized, lost or inaccessible it could result in variety of problems. In case of seizure, all the assets that are in the ZEOS protocol could be stolen. In case of loss/inaccessibility it becomes impossible to configure and update the contracts.
ZEOS fractal offers an elegant governance system to give control of the contracts to the most trusted community members, hence providing better protection from seizure and ensuring updatability of the contracts even if the existing owners become inactive.
Keys from ZEOS contracts handed over from one member to another — art by DALLE-3
2. Provide fundamental governance structure that would support the further development of the ZEOS eco-system.
ZEOS fractal members that are elected through the governance system will have full access to the treasury of ZEOS. Elected community members essentially become board of directors, with primary responsibility to act in the best interests of the ZEOS token holders. The ZEOS treasury could be used to further enhance the organizational structure, for example by establishing circles and by compensating individuals contributing to the ZEOS eco-system.
ZEOS fractal board of directors deciding how to allocate the treasury — art by DALLE-3
3. Build strong community and foster collaboration.
The governance system features one video meeting per week. Meeting participants are randomly divided into small groups. Those small groups offer excellent venue for community members to meet each other and build relationships. For example, my collaboration with Matthias was born out of participation in Eden fractal’s meeting.
Main features of the Fractal app
Induction system
Only members of the ZEOS fractal can participate in the governance process. In order to become a member it is necessary to go through the induction process. The process is initiated when user submits his application via the UI of the Fractal app. Once the application is submitted 5 existing ZEOS fractal members have to approve it. Lastly, once there are 5 approvals, the applicant needs to approve himself, that step finalizes the induction and grants the membership to ZEOS fractal.
New member being inducted into ZEOS fractal — art by DALLE-3
WebRTC integration
WebRTC enables to have video calls within the web-app. It is a crucial component in determining who should be the owners of the ZEOS contracts. More on that in the Election system section of this article.
Token distribution system
Any token based on eosio.token standard can be distributed to participants in the weekly elections. In order to distribute tokens they have to be sent to ZEOS fractal’s account prior to the election. Any EOS account is eligible to send in the tokens to be distributed. After the election every member is able to claim the distributed tokens.
ZEOS fractal member withdrawing his tokens — art by DALLE-3
State machine
Every week there are three states the ZEOS fractal can be in.
Idle state (6 days 23 hours 5 minutes) — most of the time the fractal is in that state. During it, membership applications can be submitted and approved.
Registration state (15 minutes) — during this state members of ZEOS fractal can register for the upcoming election .
Election state (40 minutes) — during this state registered members are able to submit the election results.
States of the fractal are determined by the EOS mainnet’s blockheight. Any EOS account can transition fractal from one state to another, as long as certain blockheight is reached.
Election system
This is the main feature of the ZEOS fractal. All the other features are simply to support the election system. Through the election system owners of the ZEOS contracts (board of directors) are determined.
Election takes place every 7 days. In order to participate a member of the ZEOS fractal has to register for the election via the UI. Registration is open for 15 minutes.
Once the registration ends all the registered members are divided into small groups of 3–6 people (UI enables participants to provide randomness to ensure random grouping). Thanks to the WebRTC, video session is started for each group. To maintain pseudonymity we encourage to conceal the face by wearing glasses, masks and hats.
Video session lasts for 40 minutes.
During this session each member has to answer one question.
What was your contribution to ZEOS during the last week?
Examples of contributions:
“I’m just a ZEOS holder wanting to ensure proper functioning of the governance system.”
”I’m a developer who built a new feature for the ZEOS DEX during the last week.”
”I was active in the telegram chat.”
”I tested ZEOS DEX on the UX testnet.”
”I introduced ZEOS to a friend.”
“I produced a video/article about ZEOS.”
“I got ZEOS listed on an exchange.”
ZEOS fractal member speaking about his contributions to ZEOS — art by DALLE-3
Below the videos there is list of all the account names of the group members. In essence, the election mechanism is the ranking of the contributions of your group members. Each box with the account name can be dragged & dropped. The member who in your opinion, during the last week, contributed the most to ZEOS should be dragged to the top. The member who contributed the least to the bottom. The emojis to the left of the boxes signify whether there is consensus amongst the group members about that particular rank.
💯 — unanimous consensus.
😊 — consensus, and you’re part of it.
🤔 — consensus, but you’re not part of it.
🤷♀️ — no consensus.
Only the groups where 66.6% consensus is reached on the ranking of each member, are subject to REZPECT token distribution.
Sidenote: If everybody submitted rankings and there is still time left, members can use remaining time to have unstructured discussion.
Role of the REZPECT token
ZEOS fractal REZPECT token — art by DALLE-3
All the groups that reached consensus are rewarded REZPECT tokens. Within the groups the REZPECT is distributed based on the Fibonacci sequence.
Level 6 (contributed the most) = 21 REZPECT
Level 5 = 13 REZPECT
Level 4 = 8 REZPECT
Level 3 = 5 REZPECT
Level 2 = 3 REZPECT
Level 1 (contributed the least) = 2 REZPECT
Besides REZPECT any eosio.token that was sent to ZEOS fractal during the week will be available to claim after the election. Similarly, Fibonacci sequence is used to determine the claimable amounts.
Example:
If during the week ZEOS fractal received 100 EOS, the election had only one group with 6 members, the claimable amounts per Level would be following:
Level 6 (contributed the most) = 40.4496 EOS
Level 5 = 24.9997 EOS
Level 4 = 15.4510 EOS
Level 3 = 9.5494 EOS
Level 2 = 5.9020 EOS
Level 1 (contributed the least) = 3.6477 EOS
REZPECT is a non-transferable governance token that has multiple utilities.
Primary use case of REZPECT is to determine who gets assigned into the permission system of the ZEOS contracts.
At the end of each election top 5 average REZPECT holders across the last 12 weeks are automatically assigned into the active permission of zeos1fractal account. All 8 ZEOS smart contracts will have zeos1fractal account in their permission system. Meaning, all the ZEOS contracts will be controlled by zeos1fractal account.
Top average REZPECT holders = board of directors.
Examples:
- John participated in two elections in the last 12 weeks and earned 34 REZPECT.Average REZPECT = 34 / 12 = 2.8333
- Peter participated in 5 meetings in the last 12 weeks and earned 65 REZPECT.Average REZPECT = 65 / 12 = 5.4166
REZPECT token also unlocks certain abilities within the ZEOS eco-system.
Initially there are two abilities that REZPECT holdings unlock.
- As described above, the ability to become a director of the ZEOS fractal.
- Ability to approve new members to ZEOS fractal.
Only accounts with certain total REZPECT and average REZPECT will be able to unlock the above mentioned abilities. Initial thresholds to unlock the abilities are set to 0, since at the start there are only founding members.
As the ZEOS eco-system grows more abilities will be added for those who hold the REZPECT token.
Thank you taking your time to read. If you'd like to be part of ZEOS fractal, applications can be submitted here.
ZEOS fractal member, welcoming new members — art by DALLE-3
- **********************“You can't stop the signal.”***********************
The five founding members held their very first fractally meeting on 28th October 2023, which from now on will take place on a weekly basis each Saturday at 16:00 UTC.