How can Eden Pay its Way?

Eden managed to run its third election, but only with help from the ENF. To ensure its independence in the future, it will need to pay its way.

Credit: Bywire News, Canva
Credit: Bywire News, Canva
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LONDON (Bywire News) - As Eden’s chief delegates get their feet under the table, they face a host of questions about what Eden should be, and what role it will play. The answers to those, though, will probably depend on another – can they make Eden self-sufficient?

For the first time, they held a first contact meeting with ENF Founder Yves La Rose to get an idea of his own expectations and what role he thought Eden should play. La Rose was not holding back. He expressed his disappointment at the progress so far and questioned why Eden had not made more use of its Treasury.

Using the treasury

The current Eden Treasury is 163,915.27 EOS. The overall disbursement is equal to 5% of the total Treasury. The last set of chief delegates tripled that to 15% but that bylaw change will have to be ratified so it will take some time before Eden can unlock the money it’s sitting on.

The rationale behind restricting access to the Treasury is that it provides Eden with security for the foreseeable future but holding it back has somewhat backfired. This time last year, the price of EOS was more than $6. Today it’s just under $1. As Yves La Rose pointed out in the meeting, a treasury which was once worth more than $1.5 million is now a fraction of that. Thanks to the crypto bear market, Eden’s buying power has diminished to the point that it was not able to fund its own election without help from the ENF.

That help, La Rose suggested, was not something he wanted to be giving every time. Although he did not rule out the prospect of more support, the message was clear. He’s keen to see Eden become independent and stand on its own two feet. For that, it will need the funds to finance all its operations.

Take back control

Doing so is not just about securing its future but ensuring it can retain control of its destiny. Eden is supposed to be a democratic community. What it is, does and how it moves forwards, is defined by the community and the delegates it represents. However, when a community relies on an external party for funding, it runs the risk of that party having a disproportionate say on where Eden goes in the future.

During the call, La Rose expressed his opinion not only about where he thought Eden had been going wrong but what he’d like it to do in the future. For him, it’s all about the fractal process. Outcomes matter less to him than the prospect of that process given more prominence.

It’s a valid point. Eden’s fractal democracy is the one thing it has which makes it special. It’s the one thing it can offer which can’t be found on rival blockchains. Eden offers an alternative form of democracy at a time when traditional top-down structures are struggling. It’s a vision which could be used in all sorts of other organizations. Packaging the software for running it could prove to be a defining contribution of Eden to the wider cryptocurrency ecosystem.

However, stating that could influence the direction Eden’s Chief Delegates take during this term. Whatever they run on and whatever they feel the consensus of the community is, chief delegates will find it difficult to ignore the direction suggested by those to whom they may need to go for funding in the future. The ENF has supported Eden in the past and may be willing to do so in the future.

However, the ENF has an obligation to use its own funds wisely and support those projects which they feel will help EOS grow. If Eden moves in a direction that they believe will not help that mission, then they will inevitably be reluctant to spend more capital.

Choosing the future

Eden, therefore, has a choice. It can continue along with the current approach in which, if they hit certain milestones, the ENF will continue to fund it. That can provide a clear roadmap for development, but it means Eden will never be fully independent and will never deliver on its vision of a democratic blockchain.

To be democratic, therefore, it needs to be independent and for that, it needs more funds.

One obvious way to do that – and the way which Yves La Rose appeared to support was to use more of its Treasury. Plans are already afoot to increase the percentage of the Treasury disbursed to 15% from 5%, but even that may not be enough.

Before ratifying that bylaw, the new set of chief delegates will have to work out if 15% will be sufficient to manage tasks such as funding the next election or if they need even more.

Beyond that, though, Eden will have to find a way to generate more revenue. That treasury will only last a certain amount of time, especially if the bear market continues. A number of options are on the table, which was discussed in the recent meet and greet between the old chief delegates and the new such as expanding membership, creating a dApp for their election process, and providing MSIG as a service functionality to other blockchain organizations.

Eden has a huge amount of talent in its community and has the potential to provide immense value. Whether it can do so on a scale which enables it to become self-sufficient is up for debate. However, doing so is the only way it can become fully independent and democratic.

(Writing by Tom Cropper, editing by Dan Singjoy and Klaudia Fior)

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