SiaClassic: Declaration of Independence

Sia Classic
Oct 13, 2018 · 7 min read
Image for post
Image for post

Today, October 11, 2018, we are excited to announce the official launch of the SiaClassic Foundation as a registered non-profit organization under Federal and State law. We have painstakingly developed an organizational structure that will promote transparency in funding, governance, and development.

We are proud to be a part of a truly committed community that understands the value of utilizing a non-profit foundation to ensure impartiality and openness of a coin. Moreover, we are proud to be a part of a decentralized platform that is structured to ensure that its own internal governance enhances community development and involvement in decision making.

We would be remiss if we did not begin by acknowledging those that have come before us and have devoted tremendous time and energy to this community and its code. We would like to thank our forward-thinking community members who have supported and understood the importance of the Sia project and have built the technology to what it is today.

At first glance, creating a non-profit foundation in furtherance of the original Sia chain may seem counterintuitive, especially considering that a for-profit business can raise capital and sell equity. After all, the founders of the original chain sought and received significant funding and investments from large companies like Raptor, First Star Ventures, Fenbushi Capital, and more. However, the decision to consent to mandatory and public oversight as a tax-exempt non-profit will give the SiaClassic Foundation unmatched legitimacy.

After David Vorick, CEO of Nebulous, Inc., announced the decision to reset Sia’s proof-of-work function, many in the community questioned how transparent this decision had been. In light of these facts and others, the SiaClassic Foundation will be steered by its Board of Directors, Supervisory Board, and Advisory Board. More information about the structure, elections, quorum, and tenure of members will be provided after the Foundation adopts by-laws, scheduled for October 15, 2018.

The cryptocurrency and SiaClassic communities can rest assured that as a tax-exempt organization, the SiaClassic Foundation will be required to make available for public inspection certain annual returns and applications for exemption, and must provide copies of such returns and applications to individuals who request them. Copies usually must be provided immediately in the case of in-person requests, and within 30 days in the case of written requests. The IRS must also make this same information publicly available. Generally, it may take the IRS up to 60 days to process these requests.

To make a request for such returns in person or in writing, please use the following address:

SiaClassic Foundation
8601 Six Forks Rd
Suite 400
Raleigh, NC 27615

Tel: +1(919) 676–5270
Fax +1(919) 676–5305 — ATTN: SiaClassic Foundation

Why Create a Non-Profit Foundation and Why Now?

The Beginning

Nebulous and Obelisk

Unbeknownst to Nebulous, Sia, and Obelisk, competition was mounting. Bitmain and Innosilicon were also actively developing ASIC miners for Siacoin mining. The community reacted swiftly with many supporting the idea of third party manufacturers producing affordable and efficient mining equipment. Others , who were less supportive, threatened a hard fork and a division in the community began to grow. However, the crisis was averted when the community agreed to not fork the coin.

Obelisk, which was new to the scene for manufacturing ASIC miners, experienced significant delay in delivering their product to market. Initially slated to be delivered in early 2018, shipping was delayed and finally began in late August, 2018. The hard fork conversation once again reared its ugly head once the Obelisk ASIC miners joined the network.

The Hard Fork

What Will Happen to the Community?

It is somewhat untenable for a CEO to claim that this Sia hard fork was a recent decision when their own ASIC mining system has “[a] failsafe. In the case of Sia, Obelisk built a tiny, secret extra circuit into the mining chip that would allow the Sia developers to perform a hard fork that breaks manufacturers without that extra circuit, but does not break the Obelisk machines.” While mining centralization is the bane of any proof-of-work algorithm, it is our opinion that Nebulous’ decision to brick all non-Obelisk miners by hard-forking is incongruent with the best interest of the community and the coin.

We believe that any decision that substantially or significantly affects the community should be made considering the best interests of the community and with the community’s involvement. We, along with a majority of the community, cannot conceive of any legitimate argument that would explain preemptively adding secret or hidden chips to a community-funded hardware project.

We know that a healthy majority of miners on the Sia network are not medium or large-scale mining operations. That is not to say that medium or large-scale miners do not exist. But we would be remiss to ignore those individuals who purchased one or two miners in hopes of mining profitably and supporting the network. The pending Sia fork treats every owner of any Bitmain or Innosilicion ASIC in the same way. As such, it is reasonable to conclude that Nebulous has chosen to punish the entire community for actively supporting their coin.

In light of these facts, we believe that the Sia community can survive this fork. We believe that the Sia chain can continue. And more importantly, we believe that the community can self-regulate without weighing equity and profitability over the integrity of the chain and community.

SiaClassic Foundation

SiaClassic Foundation was formed to ensure the future of Siacoin because it appears that Nebulous is no longer adhering to the original vision for Siacoin. The SiaClassic Foundation, a non-profit organization, has a mission to ensure that there is no one central conglomeration of power, but that development and research takes place in an open and transparent atmosphere.

As such, the core of the Foundation and its Board members will and should always be drawn from active community members, miners, developers, researchers and business developers who have invested more than money and time into this project. We believe that passionate members and advisors will drive and promote further adoption by the greater cryptocurrency community.

The registration and operation of this Foundation speak to this community’s dedication to open and forthright projects. Moving forward, we believe that the SiaClassic Foundation will stand as a beacon to other cryptocurrency communities for how governance, project development, funding, and decision-making should function. We look forward to working with you all.

Sincerely,

Image for post
Image for post

Scott Ellis
Chairman of the Board of Directors

This foundation is made possible because of a community of people passionate about this project, miners who protect the network, and developers who devote their time and energy to it.

Are you one of those people? If so, please join us.

SiaClassic

News and announcements from The Sia Classic Foundation

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store