HOWTO README

Coinbase regularly approaches pre-screened token projects in order to ensure they fulfill necessary regulatory requirements, which must be satisfied for any type of further consideration.

This document reflects past communication initiated by Coinbase Business Development team and bloXmove.

The conversation started mid-April 2023 and was concluded with the answers shown in this document by end of May 2023.

Disclaimer

Neither the initial outreach nor the ensuing discussion in any way provide a statement or a guarantee on whether or when listing will occur.

What is however given, is a clear indication of negative - exclusionary - criteria which must be eliminated in order to qualify for possible listing.
Actual listing will be judged on its own merit. This process has not been initiated.

bloXmove shall initiate that process if and when the negative exclusionary criteria have been addressed and solved in a way satisfactory to the listing exchange.

Coinbase’s findings on decentralization

The current review status of your asset is: Action or Information Required

·  Some risks were identified in the course of reviewing your application.

·   Our team would like to collect further information on these points to proceed with evaluation.

·  Descriptions of these issues and possible risk mitigations are included below.

·  We can’t make further progress until you address the issuer actions below.

·  Please note that this information gathering process is not to be considered an implication of listing, and we cannot provide timelines or a guarantee of listing at any time.

Identified Risks:

1.Description of issue: Centralization of Risk

The governance, development, or usage of the network, and the token within the network, is currently too concentrated around the project team.  If the project team ceased to exist or be involved in the project, the value of the asset would be significantly reduced. Centralization risks are more pronounced where the public views an identifiable project team as actively involved in the management and development of the token and network. Centralization risks can also change over time as more management and development responsibilities are delegated to the general public.

For example, centralization risks are present where:

• The general public has no ability to implement changes to material elements of the platform.
• The project’s website includes a “Team” page that identifies each team member by name and lists their successful backgrounds in areas relevant to the project and also includes a roadmap identifying the substantial additional functionality that the project team is working to develop and implement.

Next steps and possible mitigations for consideration: 

• Reduce the activity of the project team to be administrative or ministerial in nature, so that it’s no longer important to the value or success of the project.  For example, allow the general public to make changes to the system or network without the project team’s consent, or commit to implementing public proposals that have been voted on by the token holding community regardless of whether the project team agrees with those proposals. This could include applying updates to the network or system code that weren't supported or developed by the project team. At a minimum, provide a mechanism for the general public to suggest changes to the system or network.

• If applicable, please reply with an explanation of when the general public will be able to make changes to the system or network such that the project team will no longer be critical to the value or success of the project. Implement reforms so that there is not an identifiable project team that the public views as the management and development team behind the token and network.
• Avoid discussing or promoting the project team’s background in marketing the asset.

• If the project team is promoting a broader adoption and use of the network, potentially cease undertaking such measures.

bloXmove’s response on Decentralization

We acknowledge and agree with the issue as presented.
We see ourselves in (at the end of) phase1 in a total lifecycle of three phases:

1. Venture Building

2. Community-based development (<<< this is the phase being kicked off now)

3. Full decentralization (DAO?)

As of mid-2023 (let’s take July 1st, 2023 as the cutoff date), we will start to considerably

1. Strengthen the active role of the community in development and rollout (centered around discord and zealy (a.k.a. crew3)
2. Reduce the visibility and control of the core team.

A realistic schedule for this to have developed to a level that “real” decentralization can commence would be 6 months, meaning by the start of 2024, we should have mitigated the identified issue.

Specific responses/comments inline.

ANSWER to “Next Steps and Milestone” 

This is what we mean by above “Phase 2 using mainly the community management tools of discord and zealy.

After an initial stabilisation phase 4-8 weeks post-GOLIVE we will indeed involve the wider community in major rollouts.

This will be based on having (initially part of) the community having access to the code and being incentivised to contribute to bug fixes, new features etc.

Which ones to incorporate will also be handled at the community level, where the core team fades in the background and is simply part of a bigger group of contributors.

We will gradually (going from shared source, to restricted open source to finally full open source)

We expect the above to be in place within 3 month post-GOLIVE, i.e. by September 2023

ANSWER to “General Public enabled” 

Based on the answer given in the previous point, we foresee September/October 2023 :
“when the general public will be able to make changes to the system or network such that the project team will no longer be critical to the value or success of the project.”

ANSWER to “Team is still promoting”-

Rather than reducing the still valuable efforts of the current core team, we believe the way to address the issue constructively is to increase the range of people that do contribute to and promote the platform. Diluting rather than reducing seems more beneficial

Coinbase’s description of issue: Lack of Utility

The token doesn't currently have consumptive use or utility within a network or system.  To qualify as “consumptive use or utility” such utility must be unrelated to the ability of token holders to earn profit by passively holding the asset as an investment.

For example, the “lack of utility” risk is present in the following situations:

• When the token merely provides token holders the ability to stake the token in a liquidity pool facilitated by the project team in return for additional tokens or other rewards. This would not generally qualify as “consumptive use or utility.”
• When the token’s only consumptive use or utility is the ability to participate in platform governance, but the governance mechanism is not yet live.

Next steps and possible mitigations for consideration:

• If consumptive use or utility is planned for the token, make that feature operational. Please reply with a demo showing your token’s current utility or with documentation showing that the token is actively used within the network or system for its intended non-investment purpose(s)

bloXmove’s response to: Lack of Utility

This demo can be provided within August of this year and will be showcasing the utilization of BLXM both as

1. Utility token to pay for protocol access
2. (Optional) Utility token (in addition to “shadow fiat” and stablecoin) for mobility services