Everything EOS Short Clips and Rants, 20 Mar 2022

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From YouTube: ENF Funding: How Does It Work? – #EndRant

Description

Yves La Rose breaks down the mechanisms by which the ENF is funded, delving into such topics as the relationship between the ENF and EOS Block Producers, how the ENF's treasury is effectively governed by account permissions, and how the ENF's not-for-profit status factors into grant making.

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#EOS #EOSIO #ENF

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Money., where does the enf get it??

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That's what we're going to talk about today.

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we're going to talk about the enf's treasury,, where it gets its funding., how those account permissions are set up and everything you need to know about how the enf gets its funding.

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So the enf was created at the end of august in 2021.

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When the block producers on the eos network reached consensus to fund the creation of the enf by transferring 3.5 million eos to a newly created account called eosio.grants., this eosio.grants account has a permissions structure that is quite unique and enables the enf to have its non-for-profit designation status.

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The idea is that this account is still owned and controlled by the block producers in the owner permissions set. however, at the active permissions set,, it is controlled by the enf.

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On top of this permission, structure, differentiating the owner and active keys,.

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The block producers have put into place.

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A 72 hour time delay for any transfers out of eosio.grants.

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What this does is that, in order to transfer funds out of that, account,.

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Whoever is requesting that transfer must automatically wait. 72 hours.

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And so once that threshold is met,, 72 hours must elapse before that transaction can be executed..

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This gives ample time for the block producers to review any transactions out of that account and ensure that, should they wish to intervene and block that transfer,.

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They can. that process is quite simple and for accountability.

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the idea is that every time the enf requests a transfer outside of eosio.grants or from eosio.grants,, it alerts the block producers of wishing to do so.

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It does the msig., it then signs the msig meets the threshold.

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72 hours must elapse before that can be executed.

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These funds typically transfer from eosio.grants to grant recipients directly,, which then triggers the not for profit designated designation, status.

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That affords the enf the possibility of sending out grants without receiving any invoices in return.

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What that does for the enf is that those funds are not captured in the.

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Traditional accounting method at the end of the year,, and so it does not count as revenue as it never transacted through the enf,.

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On the other side,, whenever the enf wants to feed its operations or wants to fund its operations,, then the funds transfer from eosio.grants to admin.grants.

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Now,, at no point in time.

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Does the eosio.grants account receive any direct inflation.?

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That is not a thing in eos. and so right, now,, the only way for inflation to be distributed on eos.

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Is by sending inflation directly to the block producers,, which receive 1%.

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And then eosio.saving, which receives 2%.

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And so in order to feed or fund that treasury, the eosio.grants account,.

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The transfer of fund must be initiated between eosio.saving to eosio.grants eosio.saving.

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In order to transact out of that requires 15 out of 21 block producers.

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so effectively in order for the enf to receive any top up, it needs to get 15 out of 21 approval between eosio.saving to eosio.grant.

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And then once it's in eosio.grants, it must receive the threshold of two out of three signatories plus a 72 hour period before it transacts out.

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Of eosio.grants to grant recipients directly or from eosio.grants to admin.grant.

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That grant is the operational account for the enf.

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For every "in", in that account,, there needs to be a matching "out" that is the not for profit designation, status,, so that at the end of the year the enf does not have any profit.

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For every income, there's an expense.

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Now,, all of this has accountability.

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Embedded into it,, and so the enf never has access to any inflation.

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It never has access to any direct funds.

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and preemptively,. The enf also gave authority.

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To the block producers to change the keys on any of the accounts, I just mentioned. if it ever determined that the enf was no longer providing any value to the ecosystem, or if the enf, for any reason was deemed to be malicious., and so the enf itself never has any eos tokens in its possession.

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Or under its control, unless it has a matching expense at the other end.

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Everything I just mentioned is significantly different than how other foundations in the blockchain ecosystem receive their funding..

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Most other blockchains were appointed at launch and received a percentage of the token supply.

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That was created upon the launch of the network.

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The enf is born out of decentralization,.

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Has been appointed by the block producers,, but has no access to funding unless it keeps creating value,, which is subjective,, which is determined by the block producers.

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by the token,. The holders that elect those block producers.

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It is a constant accountability mechanism that ensures that the foundation that is representing the eos network is accountable.

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To the token holders that essentially fund its operations., hopefully that clarifies where the enf gets its funding. Thank you for listening.