ICO, regulation, governance and BettingWin
With a red-headed texts file, PRC announced a total ban of ICO yesterday, and claimed all ICOs are illegal onward in mainland China.
And in another continent, US, already had a step forward on regulating ICOs: https://www.sec.gov/news/press-release/2017-131
To adapt the changes and regulations, the decentralized software has to find a way to reform itself and become governable and regulable. The changes have been prompted for a while, but now, taking actions to move forward is needed imminently.
And the action, which has been mentioned many times since late 20th century, is to involve governments and implement laws to the blockchain system.
Code can do a better job than it ancestor law written on paper and ink. “Code is law” refers to the idea that, with the advent of digital technology, code has progressively established itself as the predominant way to regulate the behavior of Internet users. Yet, while computer code can enforce rules more efficiently than legal code, it also comes with a series of limitations, mostly because it is difficult to transpose the ambiguity and flexibility of legal rules into a formalized language which can be interpreted by a machine. With the advent of blockchain technology and associated smart contracts, code is assuming an even stronger role in regulating people’s interactions over the Internet, as many contractual transactions get transposed into smart contract code. In this paper, we describe the shift from the traditional notion of “code is law” (i.e., code having the effect of law) to the new conception of “law is code” (i.e., law being defined as code).”
However, rarely there is a decentralized organization willing to work with governments, and take the responsibility to implement laws. People think the decentralized movement is kind of a Laissez faire, but few relate it to the “social contract” theory.
A project caught my eye is called BettingWin(BTW). It seems to come out in the right time with the right way. It has a built-in adjustable portal for legal entities to use, means that it can suit well the recent emerging need of regulation. And its roulette system for team renewal also aims crack down centralized control of the team and the code. Their token system provides a status and dividend to holders, which seems no different to other prediction markets, however, because the team holds most of the tokens, so BTW token represents the team’s interest, not the BTC and ETH they are raising. Last but not least, this platform is built on Tezos, a blockchain with self-amending and governance ability, that also gives the project a big plus point.
BTW, given its funny name, sounds like an extremely casual project. However, given its main points and timing, I can’t resist to admire their prescience and foresight.
As a conclusion, I think what the BettingWin team trying to build is convenient for users, although it is complex for developers. I hope to see a simplified process for the development and try an initial prototype as soon as possible. Based on the standard here, BTW shall pass the Howey Test and its innovative system for regulators are second-to-none.