The EEA (Enterprise Ethereum Alliance), announced that it has collaborated with technology and software giants Microsoft and Intel to create a system of reward tokens for incentivizing the group of firms.
Devcon 5, the annual ethereum developers conference taking place in Osaka, Japan, became the ground where EEA broadcasted the news of the reward token. Based on the news, the token is a means of accruing and calculating rewards for showing active participation in a consortium.
Michael Reed, the person who handles the blockchain arm of Intel’s software and solutions group, stated that the tokens aimed to encourage participation from the teammates are categorized into three types, namely: a reward token, a reputation token, and a penalty token.
“It really can be applied to any consortium to incentivize teamwork. 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.” said Reed.
The crucial step of using tokens to align firms requires a rigorous thought process within the ethereum ecosystem. It is likely to emerge as the first use case from the Token Taxonomy Initiative (TTI), which is a brainwork of Microsoft. It aims to establish a common layout for tokenizing value across varied blockchain networks and not just to restrict itself to EEA or ethereum. The process also saw the involvement of ConsenSys Solutions, PegaSys, and Kaleido; Envision Blockchain; and iExec.
As per the TTI framework, the firms get the opportunity to choose the feature they aspire from the token. The various options available for the users include: fungible or non-fungible; transferable or non-transferable as well as they get to choose the network type as well, be it Hyperledger, R3 Corda or ethereum.
The trusted reward token can be applied to any unit of value on which the consortium agrees. While explaining the rewards process, Marley Gray, principal architect at Microsoft, stated that “Really we have the ability to tag it anything.” “One of the problems you have is people making large commitments but never following through,” he added.
Further, Gray said that “This 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.”
“Devcon 5 will be where attendees will experience how ethereum – enabled by EEA member-driven standards – delivers real-world value through tokenized enterprise solutions,” said Ron Resnick, executive director of EEA.