The Enterprise Ethereum Alliance has announced its trusted reward token on the annual Ethereum developers conference in Osaka. The system backed by Microsoft and Intel is expected to incentivize companies to actively participate in the consortium activities.
Michael Reed, blockchain program manager from Intel explained that the motivational system will have three components: a reward token, a reputation token, and a penalty token:
“The example we are using is a software development consortium like EEA, where we are trying to motivate activities like editing and contributing to specifications, developing and adding code. Then, of course, you could apply penalties for negatives, such as lack of contribution, lack of review, missing deadlines and so on.”
Marley Gray, principal architect at Microsoft noted that “making large commitments but never following through” is “almost more damaging than not stepping up at all because it leads to long delays when people are thinking things are happening and they are not”. That is why the penalty tokens will have to be factored in before rewards tokens can be redeemed.
The system comes from the Microsoft-born Token Taxonomy Initiative that aims to create a common framework for tokenizing value across all blockchains. Such companies as ConsenSys Solutions, PegaSys, Kaleido, Envision Blockchain and iExec all participate in creating a system for sustainable blockchain development.