Governance is the key part of a public blockchain. GXChain combines “on-chain” and “off-chain” governance, simultaneously putting people and computational code into the governance system, realizing decentralization, robustness, and efficiency. Every GXChain asset holder has the right to participate in the decentralized governances. All GXC holders could vote to determine the future direction, strategy, and operation of the GXChain ecosystem.
GXChain “on-chain” governance is comprised of the Committee and TrustNodes. The committee constitutes 11 members, who can propose to vote for the modification of global parameters of GXChain. The TrustNodes constitute 21 members, who are in charge of the transaction verification, production, and broadcast of blocks.
○ The GXChain Committee is similar to the blockchain board, which is responsible for proposing and voting for the modification of global parameters of GXChain.
○ The committee is comprised of the 11 top ranked members in the TrustNodes voting.
○ The TrustNodes are comprised of the miners of GXChain, responsible for transaction verification, production, and broadcast of blocks.
○ The minimum number of TrustNodes is 21.
○ The foundation is a nonprofit organization registered in Singapore.
○ Comprised of the Policy Committee, Advisor Committee, Execution Committee, Ecosystem panel, Code evaluation panel, Marketing panel, and Administration panel.
○ Responsible for decision making, research & development, global marketing, fund management, and other operations.
The governance on the blockchain is via the GXChain committee and TrustNodes. The TrustNode delegates GXC holders to participate in the governance of GXChain. There are 21 TrustNodes in the GXChain ecosystem, which support the infrastructure of GXChain, including internet, storage, computation, etc. We encourage all TrustNode members to take the lead to build and develop their community, the competition to be a TrustNode strengthens each participant in the community and makes the GXChain ecosystem better. The top 11 of the 21 TrustNodes constitute the GXChain committee, who act as the governors of the ecosystem.
There are three roles in GXChain governance.
Participants need to stake and lock 10000 GXC, when they want to cancel the competition, the locked GXC will return after 30 days. To promote efficiency, we made some terms to determine if the candidates are qualified to be a TrustNode member. These terms are approved by the ecosystem development panel of the GXChain foundation.
1) Should be a legal entity with a website and social media.
2) Must have nodes that are open to public testing.
3) Have necessary hardware and be able to maintain the server for the node.
4) Must stake and lock some GXC. Withdrawal will be regarded as ceding from the competition.
5) Have a budget plan for the next three years, supporting potential hardware upgrades and community development.
6) Have community of a certain minimum size.
The income of a TrustNode comes from production and broadcast of blocks. The amount of income is determined and voted for approval by the GXChain committee. A block reward is comprised of transaction fees and a reward from GXChain Foundation. GXChain Foundation will contribute 500,000 GXC to reward TrustNodes every year, for eight years.
Ballot to GXC = 1:1, and GXC holders can vote for multiple nodes. The GXC for voting will be staked at the wallet, transfer of the staked GXC out of the wallet will cancel the voting procedure. Members ranked top 20 in votes will automatically be elected as TrustNodes, and one TrustNode will be selected randomly. There are three methods to vote.
1)Vote through Blockcity
2)Vote through mobile or PC wallet.
3)Vote through exchanges (requires support by exchanges).
The GXChain Foundation established on November 2017 in Singapore. The foundation aims to facilitate sound and efficient development of the GXChain ecosystem and protect the rights of GXC holders. Also, the foundation is responsible for fostering communication among GXC holders, the GXChain community, TrustNodes, and developers.
The GXChain Foundation will disclose the development and operation progress of GXChain annually. In particular, the foundation will disclose the use of funds annually, and introduce third-party auditing for supervision. Auditing reports will be disclosed in the annual financial statements.
3.1 Organizational structure of the GXChain Foundation
|President||Minqiang Huang ，Founder of GXChain|
|Vice President||Guojun Tu, Co-founder of GXChain|
|Executive Officer||Minqiang Huang，Founder of GXChain|
|Other members||Cheng Wang，Chief Technology Officer of GXChain|
|Haoxiang Lan，Blockchain R&D Director of GXChain|
|Liting Zhu，Blockchain Architect of GXChain|
|Xiaopeng Xu，Operations director of GXChain|
|Feng Han, Visiting scholar & research associate at Columbia University Advisor at Huawei Central Institute, co-founder of Elastos|
|Xiaolai Li, Founder of INBlockchain|
|Executive Officer||Minqiang Huang，Founder of GXChain|
|Vice President||Guojun Tu, Co-founder of GXChain|
|Secretary||Xiaopeng Xu, Operations director of GXChain|
GXChain team has many professionals range from blockchain and financial technology, to community development and marketing. Lead by Minqiang Huang and formed more than 40 technology-oriented developers and engineers. The team achieved development of GXChain main net and smart contract 2.0. Major people of the GXChain Foundation is shown as follows:
|Minqiang Huang||Minqiang has over ten years’ experience in data exchange, financial technology, and blockchain, he dived into cryptocurrency in 2012 and initiated several projects since then. He used to be CTO at Hakim Unique Internet Co Ltd (SHE: 300300), and Director at financial services of HAKIM UNIQUE. Besides blockchain technology, Minqiang is an enthusiast in ultramarathon, trail running, and mountain biking.|
|Guojun Tu||Guojun was a senior executive at several public traded companies, including Powerise Information Technology Co., Ltd and IIN International Ltd. He is a serial entrepreneur and has more than 20 years' experience in the field of information security, payment, and IT. Startup headed by Guojun received investment from IDG.|
|Cheng Wang||Cheng used to work as a full stack engineer at 51.com. Before 51 he worked at treefinance.com and Vobile Info Tech Co., Ltd. as a core developer. He is proficient in data collection, desensitization, modeling, system architecture, internet security, and cryptography. He had more than six years’ experiences for leading a technical team and made many breakthrough contributions.|
|Xiaopeng Xu||Xu has six years’ experience of sales and marketing. He used to be a marketing project manager at Zhejiang Media Group, Simei Media (SHE: 002712), and NetEase, Inc. (NASDAQ: NTES). Xu has abundant experiences in branding strategy and internet marketing.|
|Shuang Guo||Shuang has two years’ experience in distributed ledger technology and cryptocurrency. He researched and analyzed hundreds of blockchain projects. He has two years of experience in technology transfer, specifically in market assessment, patentability assessment, business development, and CRM.|
|Haoxiang Lan||Haoxiang is a full stack engineer and blockchain expert. He had over five years’ experience in the financial industry and used to work at State Street Corp (NYSE: STT), 51.com, and treefinance.com. Moreover, Haoxiang started blockchain research in 2013, and actively contribute codes for Graphene community. He has great knowledge in cryptography, database, server-side and mobile app development.|
|Junjie Zhang||Junjie is a full stack engineer and proficient in UI design, frontend/backend development. He is proficient in node.js and python. He used to lead front-end development of several renowned financial technology companies, besides that, he also participated in application development based on the blockchain.|
|Liting Zhu||BS in Mathematics, and Master in Computer Science. Liting has over six years’ experience in software development and actively contribute codes for Graphene community. He is proficient in P2P web development, C/C++, Python, Shell, he used to be core developer at Vobile Info Tech Co., Ltd.|
|Lei Xu||Lei is a full stack engineer and expert in frontend development. He is proficient in PHP, Node.js, and Python. He has many experiences in the cross end and data visualization product development. Lei used to work as a frontend developer at ZhejiangDailyMedia and tops001.com.|
|Jun Yao||Senior JAVA engineer, Jun used to work at treefinance.com as a core developer, and he is proficient in data collection, data mining, and data analysis.|
|Liyu Wu||Liyu used to work as a senior product manager at NetEase, Inc.(NASDAQ: NTES), before NetEase, he was a product manager at Hithink Flush Information Network Co Ltd(SHE: 300033) and weidai.com.cn. He has abundant experiences in both business-oriented and customer-oriented products. As a blockchain technology believer since 2015, he leads the blockchain product development and commercialization of GXChain.|
5.1 Structure of GXChain Foundation
|10%||Early Investors||Distributed to the earliest investors|
|24.51%||Token Sale||Sold to a public investor in March 2017|
|5%||Blockcity Mining Pool||The incentive for users to use Blockcity dApp, and authorize their data|
|9.49%||Community Developer Fund||Fund to incubate developers to build dApps based on GXChain|
|51%||21%||Founding Developers||Will be used as a bonus for GXChain developers. Also, can be used for people who contribute significantly to the project.|
|10%||GXChain Ecosystem||Will use for the construction of GXChain data ecosystems, such as developer community growth, Hackathon, competition, and conference|
|6%||Marketing||Will be used for community operation, global press release and broadcast|
|4%||TrustNode Rewards||Incentive for TrustNodes,|
|10%||Operations||Daily Operations, partial employee salary, accounting fees|
GXChain Foundation will strictly comply with the distribution terms above and commit to maintaining the transparency of fund usage and allocation.
Policy for fund usage:
1) Approval from Panel Head is required for expenditure above 20,000 USD.
2) Approval from Execution Committee is required for expenditure above 50,000 USD.
3) Approval from Policy Committee is required for expenditure above 200,000 USD.
Administration Panel oversees daily fund management, including salary, renting, and other expenses. Execution committee will assign professionals to manage digital assets of GXChain foundation. Multisignature will be used to ensure the fund security. Fiat currency income will be used to buy cryptocurrency and store at foundation digital wallet.
Digital currencies collected by the GXChain foundation will store at the cold wallet. For a small amount, 2of3 multisignature will be used. The private keys will be held by multiple people in the policy committee. Alteration of signature number requires the approval of the policy committee.
The GXChain Foundation will disclose the development and operation progress of GXChain annually. The foundation will disclose the use of funds annually, and the audit will be used for supervision. Auditing reports will disclose in the annual financial statements.
To protect the security of GXChain and interests of GXC holders, GXChain Foundation predicts and response risks in a multidimensional way, with multiple party participation.
Any significant issues will be determined and evaluated before making a decision. Here are the procedures:
1) Members of Execution committee lead other panels to perform risk assessment and take consideration of multiple aspects, including technical, marketing, policy, and compliance. Setup standards, conditions and establish plans for the risk. For essential projects and investment, a thorough due diligence analysis shall perform before further evaluations.
2) Execution Committee will conduct a comprehensive, and a written report shall submit to the policy committee. If necessary, the executive officer should consult the advisory committee before submitting the report.
3) Policy Committee will take proper consideration of the reports filed by Executive Officer, and decide according to related procedures.
6.2.1. Execution Committee will periodically examine and evaluate the technical progress and management of GXChain.
1) For technological development, the evaluation will focus on the progress of GXChain R&D, operations, applications, and security.
2) For management, the review will focus on human resource, budgeting, investment, and other ethical issues.
6.3.1. Execution Committee will make standard to define the degree of emergency and plan accordingly. Upon approval, Executive officer leads other panels for implementation. Execution Committee should evaluate and categorize the degree of risks and emergencies.
6.3.2. According to the above emergency assessment results, the decision makers of the corresponding basic emergencies are as follows:
1) For moderate risk, Execution Officer in charge of decision making.
2) For intermediate risk, Execution Committee should make plans and solutions and submit to the president of the policy committee for approval.
3) For high risk and emergency, president of the policy committee should summon policy committee meeting and report to all members. For an urgent event, the president may decide, however, the president must submit a written report and make an explanation to all members at policy committee.
To ensure the governance efficiency, salary can only be made to members who work exclusively at GXChain Foundation.