Very often in unregulated markets of high speculative activity, what is and is not permissible is one of those things that you instinctively feel you know but cannot quite distill.
This feature contains some carefully thought through and much-discussed guidelines for crypto issuers in search of a code of conduct put together by The Futereum Foundation. We hope this is helpful material that is easy enough to grasp and abide by. We have used this guideline internally in our own project to try and adhere to its tenants as much as possible.
(Note that the following guidelines do not include anti-social behaviour such as trashing a competitor’s product. While abhorrent, and in many cases worse than some of the clear ethical violations listed below, that is not the topic under discussion here. For this topic, we focused purely on how the issuer conducts themselves with respect to the design, manufacturing, and distribution of their own product.)
Attributes of The Crypto Product
All products must conform to the following criteria:
- No product has premine; all tokens are for sale to anyone
- Products yield fees charging maximum percentage of 10% net / year + 5% one-time/cycle administrative costs
- Every exchange of crypto in the product design must take place through the smart contract or a House wallet with a hybrid smart contract inbuilt so that delivery of all crypto is permanently automated and any changes in address are only ever up to the ultimate beneficiary of the crypto to change
- Product utility and value should be constantly engaged. There ought to be no value in the product whatsoever if the utility of the product is not present at the same time
- Product should try not to be an unnecessary imitation or copycat version of another product on the market that is in the Top 100 cryptocurrencies traded on coinmarketcap.com; it is possible that a product may assimilate a much less popular one however but preferential if it somehow engages the existing crypto with such utility in the product utility
Activities of The Product Issuer
Because of the unregulated status of the market, it is not necessary for the issuer to identify who he/she is personally or even commercially. This is one of the defining features of decentralization, after all. However, that is not the same thing as saying the product issuer should not have to abide by some basic codes of conduct.
Regardless of who they are or claim to be, the role of the crypto product issuer is really one that comes down to a matter of innovating, putting the product in place of the public (via appropriate promotion and marketing) and then going back to innovating again.
Specifically, the activities of the issuer ought to be ones for which the fee-based compensation received would be ordinarily deemed worth paying for in the form of a manufacturer/wholesaler/retailer mark-up by the product purchaser and/or work that is typical of a product issuer who is being paid in fees. For example:
- Arranging publicity and promotion for the product launches / ongoing product promotion through the media
- Arranging for exchanges and other listing sites (in the case of a product issuance) to feature the product on their platform
- Updating and tracking social media and other community-based bulletin boards/chat rooms/forums as appropriate
- Selling and/or promoting new product issuances and existing products with a feature-dominant marketing plan clearly outlining product superiorities
- Designing and implementing new product niches and releases (preferably which enhance / engage / combine with existing product issuances)
The following are a list of the types of activities that would not be deemed appropriate of a retailer charging a mark-up in the form of a fee-based commission and these activities are not permitted:
- Guaranteeing or arranging via warranty the sale or issuance of any product, whether personal or corporate
- Holding in custody any products on behalf of customers and/or arranging deals in trust for customers
- Accepting payments in addition to the fees which are automated in the transaction purchase as outlined in the product’s white paper and/or especially accepting product kickback for granting special favours
- Attempting to obtain or obtaining below-market priced product for the purpose of personally profiting off the activity of doing so (includes premining crypto)
- “Pumping” a product via direct solicitation of an investor/group of investors with purely speculative claims as to the product’s future exchange traded value so that the price of the product is likely to increase as a result of exchange-traded participants buying in
- Issuing deliberately misleading or inaccurate statements regarding the product, the issuer, the project status etc. in order to achieve more product purchases so that products held personally by an individual who is also an issuer can be sold for a quick mark-up on exchange.