On Monday, I wrote about conflicts of interest. Since then, I caught up on Nebulous/ Sia’s controversial decision to hard-fork their network to brick third-party ASIC miners (Innosilicon and Bitmain).

Couldn’t have asked for a better example of conflicts of interest.

A brief summary of events:

  • Mid-2015: a company, Nebulous, launched the Sia network–a file storage network
  • September 2016: Nebulous had raised $1.25M
  • June 2017: Nebulous announced they would be building their own ASICs: Obelisk and secured millions in presales of the hardware
  • Soon thereafter: it become clear that third parties were also creating Sia ASICs, namely Innosilicon and Bitmain
  • April 2018: Nebulous sold ~$1.5M in Siafunds1, a tokenized security
  • October 2018: Nebulous decided to initiate a hard-fork to brick third-party ASIC miners, using a “kill switch” programmed into their Obelisk miner

What a mess of incentives. The Nebulous team has many bosses:

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Member updates

October 16, 2018

USDT may or may not unwind, but its usefulness is at risk

October 9, 2018

The awkward Sia fork

October 3, 2018

Pixelmaster, FOMO3D and the predictable decline of greater fools games