On the morning of May 8th, it was brought to our attention that an agency proclaiming as an advisor of IRISnet attacked the IRISnet project along with its development team by posting irresponsible and baseless allegations on social platforms. We have since been approached by various investors and community members for detailed explanation regarding this incident. We at the IRIS Foundation take the issues raised seriously, and wish to set the record straight on several points.
- Among many others, the aforementioned agency had previously participated in a fundraising round held by IRISnet during March 2018. This agency approached the IRIS Foundation again in June 2018 offering to help conduct another round of fundraising as a financial adviser. The two parties were able to reach an agreement after carrying out a negotiation process. According to the agreement, the agency was contracted to deliver 16 service outcomes, among which was to raise a certain amount of funds while being compensated with a corresponding commission.
- Unfortunately, the said agency was not able to fulfill its promises of the previously agreed upon services. Specifically, the amount of funds raised fell short of what was initially agreed upon by a large margin.
- The IRISnet team has since thoroughly reviewed all items listed in the service agreement. Upon careful review, IRISnet proposed to pay the agency a commission fee at fair-market value. Regretfully the agency rejected such offer, and demanded to be paid out in full as they would if they completed all service outcomes like they were contracted to.
- With a serious and responsible attitude toward all investors and communities, the IRISnet team kindly rejected the agency’s less than reasonable requests. Subsequently, on the morning of May 8th, we were notified that the said agency had posted false accusations towards IRISnet across multiple social platforms specifically attacking the IRISnet core team.
We have only listed the facts above with the hope to bring the truth and shine a light on the situation to the IRISnet investors, developers, and community members.
We would also like to stress that the IRISnet team is willing to resolve the dispute with the agency through proper channels, but only on the basis that they would stop spreading false allegations any further. We on behalf of the IRISnet team reserve the right to pursue any and all available legal remedies.
In addition, we hope that the IRISnet community can have an understanding of the entire process of the incident, and not be mislead by the false allegations made towards to the project. Since the successful launch of MainNet in March this year, all progress within the IRISnet project has been carried out in an orderly manner in accordance with the plan. We call upon all community members to work with us on building a core foundation for decentralized business applications.
Besides explaining the process of this incident to our community members and our position through it, we would also like to point out that there was a large amount of false information put into in the statement made by the agency. We have decided to select a few keys points, and address them down below:
- “Annual inflation rate is 20% … which implicates unlimited 0 cost tokens generated in middle and long term, and for people to think carefull about its price implication…” .
- The annual inflation rate in IRISnet is in fact set at 4%, rather than the “20%” as the agency claimed in their false statement.
- “IRIS Foundation made numerous project investments including one project price droped to near zero”.
- The IRIS foundation had only previously invested in two projects that were closely related to the IRIS ecosystem: one of which being an application blockchain that wasto be built on top of IRISnet at the time, and the other being an exchange project as it was mentioned in the statement by the agency. Note that the IRIS foundation had only invested 200ETH in the exchange project in the belief that it would be a core functional area of Blockchain, while also acknowledging the synergies between the two parities.
- Token release schedule. “15% of the foundation’s holdings are unlocked in the second half of the year” .
- The above statement is completely misinterpreted and threatening to the IRIS community. Even though the IRIS Foundation had previously made the promise to lock up the holdings for 6 months, it does not necessarily translate to releasing all to circulation over the span of the second half of the year. Knowing that doing so would sabotage the project in various ways, we at the IRIS foundation aim to do everything in our ability to set the project on its path to success.