Enterprise Ethereum Alliance (EEA) comes up with a new reward token program to incentivize consortiums for their participation
Microsoft and Intel backed Enterprise Ethereum Alliance (EEA) has come up with a trusted reward token system to incentivize enterprises for their consortium efforts, reported Coindesk. EEA is a blockchain consortium comprising of 450 enterprises including the likes of Intel, Microsoft, JPMorgan Chase, Accenture Santander, Cisco, and many others. It is responsible for setting business standards for blockchain applications to be built on the Ethereum network.
The newly devised incentive program would reward companies for actively participating in consortium activities. It would consist of three types of tokens: reward token, a reputation token, and a penalty token.
Michael Reed, Intel’s blockchain program manager said,
“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.”
The current reward token itself is born from the Token Taxonomy Initiative (TTI), a program that was built by Microsoft to create a common parameter for tokenizing value across a range of blockchain networks. TTI acts a ground zero for an organization where they can decide the nature and features of the tokens and what networks they would be compatible with.
How does the Reward Token Program Work?
The reward token program functions similar to the ERC-20 protocol where anyone who wants to create a token using ERC-20 protocol can decide which functions they would like for their native token and which ones they don't need. The trusted reward token can be attached to any unit of value. Marley Gray, the principal architect at Microsoft, said that the reward token acts as grant contracts, with the
“ability to tag it anything.”
He went onto explain,
“One of the problems you have is people making large commitments but never following through. 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.”
EEA's executive director Ron Resnick said that the new token reward system would deliver real-world value through tokenized enterprise solutions, He noted
“Devcon 5 will be where attendees will experience how ethereum – enabled by EEA member-driven standards – delivers real-world value through tokenized enterprise solutions,”