Transaction Split Proposal Approved by Blockchain Community Vote
As announced in May 2019, the Vault12 team put proposed changes to the functionality of the Vault token economy to the vote. All Vault Guardian Token (VGT) holders with unlocked tokens were eligible to vote via a blockchain vote conducted on the ETH mainnet.
The “Transaction Split” proposal has been approved overwhelmingly as the new policy of Vault platform.
With a total of 66,241,593 votes cast, more than 96% went to the transaction split proposal.
No Change 1.84% (1,221,576 Votes)
Dual Token 1.27% (841,974 Votes)
Transaction Split 96.89% (64,178,043 Votes)
Total Votes Cast: 66,241,593
As a hallmark of blockchain voting, the voting can be inspected on the blockchain: https://etherscan.io/address/0x908d81a4961c4a40b38c91f16d216c6307a89954#events.
What is the Transaction Split Proposal?
Key Goal: Optimize for ease of use and reach for app customers
Providing app customers with VGT tokens will be heavily restrictive as long as tokens remain categorized as a security. The task of categorizing VGT as a utility might take years and may depend on regulations that are not yet issued.
Instead, we can make the platform accept the widely available Ethereum (and other cryptocurrencies at a later date) and keep the original VGT token as a registration of commercial rights on the platform. This way millions of Ethereum users can immediately use the Vault platform with no extra steps such as buying tokens on exchanges. At the same time, VGT tokens become valuable since ownership entitles holders to automatically receive a piece of each transaction that takes place on the platform.
As you might recall from our white paper, the Vault platform will be powered by the three following transaction groups:
We propose a flat, 20% transaction split to be implemented by all elements of our platform stack.
Here are the main consequences of this policy:
- Any Ethereum owner will be able to use the Vault12 application immediately.
- Ownership of VGT tokens will become an instrument to receive a steady flow of Ethereum proportional to transaction volume taking place on the platform. At a later date, any ETH-convertible cryptocurrency will be acceptable as platform payment and will accrue to VGT owners with the same 20% split.
- Currently, external investors and advisors control ~82% of all unlocked VGT tokens and therefore will receive ~82% of ETH received in transaction splits. (See token distribution report).
- VGT tokens will remain a security, but owning VGT token will no longer be a requirement to use the Vault Platform and end-user products.
- VGT tokens will be tradable only on security exchanges. US residents who wish to buy VGT tokens will have to remain compliant with KYC/accreditation regulations.
With the Transaction Split approach, VGT’s role as an application payment token becomes secondary, and token scarcity becomes a desirable property of the platform. Vault12 will provision a buy & burn smart contract that will spend 10% of the previous month’s fees to purchase and permanently burn VGT tokens until the total number of provisioned VGT tokens falls to 100,000,000 (one hundred million) tokens. All monthly burns will be inspectable on the mainnet.
More details on each proposal can be found here.