To the QRL Community
I am writing to the community because of recent actions taken by my co-founders Peter Waterland and JP Lomas over the last month. In light of these actions, I feel that I have an obligation to express my serious concerns about a number of broken promises by Peter and JP to the community and to myself. I expect that these broken promises will have a significant and negative impact on the direction and fate of the project. I hope the community will demand answers from Peter and JP and force them to do the right thing.
When Peter, JP and I initially began the process to raise funds to create a viable quantum resistant Proof of Stake blockchain network, I had high expectations for what we were capable of accomplishing. $100 per QRL Token or approximately $11.5 Billion is the value I assessed for this project assuming the delivery of a high quality core code base using a simple benefit-cost risk assessment of quantum computing on blockchain networks.
However, after we successfully raised over $4.1 Million worth of BTC/ETH based on what the three of us had told the investing community about what and how we would do things, Peter and JP changed course and started breaking the promises they made to you as well as to me.
First, according to Peter’s presale parameters that he told the investing community about before the fund raising, Peter promised to establish a Foundation to handle the raised funds and incentivize the development team by tying allocations to milestones. This has not happened.
Instead, Peter and JP have created a private UK organization, without my knowledge or input, that does not include any phased vesting schedule tied to development milestones and research goals of the project. When I raised concerns regarding the lack of documentation and the failure to establish a proper governance model under a Foundation, I received carefully worded replies that were thin on substance and evasive in nature, suggesting to me that they had no interest in keeping that promise.
Perhaps most troubling is that Peter appears to have taken his allocation (1.4 million QRL) and moved over 90% of the funds to Bittrex. This concerns me because it shows that he’s not committed to or does not have faith in the success of the project. Here is the address where you can track Peter’s allocation of funds.
Second, the community was promised financial oversight by “3 different founding members of the QRL” — myself, Peter and JP. This has not happened. Instead, Peter and JP have cut me out of the process and I have no input or ability to access the funds to make sure they are used for purposes of the project.
In fact, Peter informed me that he considers himself a “dictator” to do as he pleases. If that wasn’t bad enough, JP confirmed that view of Peter as a dictator when he told me
“Yes I’m leaving Peter to do as he wishes…how the foundation chooses to structure…is to me, at Peters sole discretion…I am happy to continue to contribute to the onward progression of the project with Peter, the sole founder…the sole benefactor/controller/executor of the QRL foundation.”
To make certain that we lived up to our commitments to the community and investors, I engaged Peter and JP and asked to have a say in how the funds were allocated or, have control over enough of the raised funds to ensure that the project would actually get completed. They refused. Furthermore it became apparent that they did not intend to honor, and in fact never intended to honor, our own agreement as to my status as a co-founder and my financial interest in the project.
Third, not only did Peter and JP break the promise of financial oversight by all three founders, it became clear throughout our discussions that that they had no intention of allowing me to perform my duties as head of operations, but instead would take those responsibilities upon themselves or not at all.
Fourth, the community was promised a good faith effort to launch the MainNet in August/September. Despite raising over $4 million dollars, neither the focus nor the funds of the project seem to have been directed at hitting this milestone. In fact, since our successful fundraising on May 22, virtually none of the raised funds have been allocated towards necessary development work. Under the current circumstances, it seems extremely unlikely that this deadline will be met.
After submitting budget proposals to Peter and JP, I was told only that the proposals were too expensive, despite the leanest version of the budget calling for only $1.5 million in spending over two years (less than 37% of the original $4.1 million raised and not including any of the over 8 million QRL that was to be allocated to the Foundation). When I asked, on several different occasions, to see how Peter and JP were planning on budgeting the money, they had no alternative plan or budget to offer and only specified their desire to hire “1–2 developers”. Instead, Peter plans to take a 2–3 week vacation in August and is still working full time as a physician. Budgets, roadmaps, and code are either being developed in secret or not at all.
Unlike Peter and JP, I had presented a specific plan to get the project done on time and on budget, but Peter and JP do not appear to have a plan to get this done on the schedule we had promised to the investment community.
At this point I cannot see how the project can successfully deliver on its development timeline commitments nor have I seen any plans to dedicate the necessary funds to ensure the quality of the project.
For the last month I tried to privately mediate what I believe to be deeply troubling issues and concerns, that I mentioned above, to try and persuade Peter and JP to fulfill their promises. Unfortunately, I can only describe Peter and JP’s responses to my attempts to resolve these issues in the interests of the investors and the community as at first evasive, then refusal, and finally an attempt to silence me.
When it became clear that Peter and JP were committed to, at best, a deeply troubling and undocumented strategy that was contrary to what had been promised to the investors I retained attorneys and had them send Peter and JP a letter to discuss the matter. You can see the letter here: Link
I did this, with the hope of securing the specific terms that I believe would protect the project, the investors, and my own interest. In response, they asked for my QRL logins/passwords, locked me out of the QRL email system, scrubbed me from the website, kicked me out of the team slack, and attempted to remove me from the public community forum.
For the reasons I’ve described here, this project lacks proper accountability to the vision, commitments, and financial controls promised to the investors. I am going to continue to do everything in my power to compel Peter and JP to fulfill their promises and live up to their commitments.
I am more than happy to talk and answer any of your questions. I can be reached at firstname.lastname@example.org