Why the sale of overissued MAID violates MaidSafe crowdsale conditions

This was the deal:

7. SAFE Crowd Sale

The crowd sale will be operated as follows:

  • A fixed number of MaidSafeCoin will be issued during the crowd sale
  • The sale will last until all coins have been purchased (circa $8million) or 30 days has passed, whatever happens first
  • Within that period, public funds in the form of bitcoin and mastercoin can be sent to exodus bitcoin address via www.BuySafeCoins.com
  • Each participant will purchase an intermediary coin, MaidSafeCoin
  • A quantity of 429,496,729 coins will be available for purchase, this equates to 10% of all safecoins
  • Early buyer incentives are in place to reward early participation (see chart below)
  • It is estimated that participants will purchase 17,000 MaidSafeCoins for 1 bitcoin
  • All purchases and transctions will be recorded on the Bitcoin block chain via the Mastercoin protocol
  • The deposit of funds in the exodus address will auto generate the appropriate level of MaidSafeCoins, they will be reciepted in the participants mastercoin wallet
  • Once the full network is launched these will be traded on a 1:1 basis for safecoin
  • Each participants safecoin wallet will be credited as the full network is launched and they create their SAFE network accounts
  • In the event that not all coins are sold, the remaining coins will be burned

And the reality is last week MaidSafe management stated that the 20-odd million overissued MAID coins will be lent to MaidSafe the company and sold.

Violations of SAFE Crowd Sale Conditions

  • The sale was supposed to end within 30 days. It didn’t – MaidSafe plans to sell the 20-odd million MAID now.
  • The MaidSafe Foundation (they have the 20 odd million overissued MAID coins) did not purchase an intermediary coin, MAID. They simply got them from Mastercoin.
  • A  quantity of 429 million MAID coins was supposed to be made available for purchase. The Foundation failed to burn the overissued coins and those overissued coins could soon become available for purchase.
  • The available supply of 452,552,412 MAID (see https://coinmarketcap.com/assets/maidsafecoin/) is more than 10% of all Safecoins that can be generated which means all other crowd sale conditions (e.g rewards and so on) that depend on that will be violated as well.
  •  The deposit of funds in the exodus address did not generate the 20-odd million MAID. Those are counterfeit MAID tokens.
  • Because not all coins have been sold during the crowdsale period, they were supposed to be burned. The Foundation not only failed to do that, but is actively conspiring with MaidSafe the company to put them in circulation.

Mission Creep and Proof of Likes

You may also want to take a look at Chapter 8 which contains scope of activities of the MaidSafe Foundation and is followed by this:

No further actions can be taken by the Foundation, unless the authority is requested by the community to add additional objectives to this list.

Original mission of the Foundation hasn’t been ammended and the only acceptable approach for that is for the community to issue a formal proposal which would be voted on using Bitcoin broadcasts from MAID-owning addresses.

Note that the quoted text expressly authorizes the community (MAID holders) to ammend the list of permitted activities. Instead, MaidSafe the company usurped this right and with the help of community loyalists (moderators of the Safe Network Community Forum) turned this procedure into a controlled experiement in collecting positive feedback via forum “likes”.

Positive feedback from a loyalist-moderated forum is not lawful and cannot serve as justification for the proper, technically feasible voting procedure. At least two (and possibly more) actions would be required:

  • broadcast hash of the official proposal to ammend the rules and call for a vote
  • public vote by MAID holders

Should addresses that own 50%+1 of the original paid-for MAID issuance (i.e. 429, not 450, million MAID) vote in favor, the Foundation would gain new powers.

But why bother with all that when “the community” can be redefined to mean a handful of loyal moderators and 30 delirious commenters?

After several serious violations some of which go back to 2014 MaidSafe keeps coming up with creative ways to do as they please.

 

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