B&C Exchange Development and Marketing Fund

237 million NuShares shall be granted to BlockShare holders, as an adjustment for funds held and quarantined in NuShare address SSajkovCPXwdw46nyJ7vpTDkwtRZJzyY2z.

While it is possible a custodial grant will need to be passed by NuShare holders to generate some or all of this 237 million NSR, most likely the funds will be paid from Nu Liquidity Operations NSR. The Chief of Liquidity Operations may decide when and how much of the 237 million NSR will be disbursed. Most likely it will be transferred to a dedicated B&C Exchange NSR addresses in partial payments. Initially it is expected that Esko, Manager, Liquidity Operations, will control the funds on behalf of BlockShare holders, beginning at NuShare address SVMzeQc4LfmTtjdtgGycVaoEbs4xEcKYZ8 for compensation. Later, it is expected a multisig group will manage funds. In the absence of specific direction from BlockShare holders, all decisions about the use of these funds, including, but not limited to, paying contractors and allocating the funds to various assets, shall be made by Phoenix. This will remain true even if and when funds are transferred to multisig groups, which Phoenix will choose the members of. Funds will be held in publicly published blockchain addresses so the status of all blockchain funds are public. Some funds may be on deposit at exchanges. Full logs of deposits, withdrawals and trades made with exchange accounts will be made public.

Raw data of all transactions will be released, either as blockchain records or exchange account records. BlockShare holders would likely benefit from additional analysis and reporting on the use of these funds. Phoenix encourages BlockShare holders to hire a competent accountant to do this work. It is outside the scope of Phoenix’s expertise and it is against shareholder interests for it to spend its limited time on financial reporting, beyond the publication of raw data that can be further analyzed by others. Phoenix is a contractor for the B&C Exchange DAO, not a CEO or anything of the sort.

Core competencies of Phoenix include software development and economics, particularly involving financial trading markets. Phoenix does not regard itself as a competent marketer or promoter. Phoenix calls this the Development and Marketing fund because it recognizes the importance of allocating a large portion of funds to marketing efforts: the promotion of B&C Exchange and BlockShares to the public. Phoenix is not competent to direct the use of marketing funds in any detailed manner. That will need to be managed by a professional resource that has not been defined yet. B&C Exchange needs marketing professionals to step forward and provide marketing services. At this time, with respect to B&C Exchange, Phoenix’s attention and efforts will be focused on development of the core client and protocol.

Of course, the B&C Exchange protocol remains unchanged by this motion. It remains a decentralized autonomous organization that anyone can become a custodian of funds for, if they can win BlockShare holder support. Phoenix will certainly support and cooperate with other custodians that are dedicated to furthering BlockShare holder interests with their independent and decentralized work. Anyone who receives a custodial grant outside the scope of these 237 million NSR will have no accountability to Phoenix, and Phoenix will have no accountability for their actions, consistent with DAO architecture.