It is our pleasure to now publicly announce another major step for the BitShares Blockchain Foundation towards transparency, openness and accountability.
Since we are in the fortunate position to have received sufficient trust from BTS token holders to successfully operate multiple escrow workers, we feel the need to be as transparent as humanly possible to these token holders as to how the funds are used.
Thus, we started working with an accounting system that allows us to
Please allow us to briefly go through the tool before we show an overview of the books.
Show balance of all accounts
ledger -f ledger.ledger balance
Show full register
ledger -f ledger.ledger register
Show register of an individual account
ledger -f ledger.ledger register BitShares:BitSharesDAC
In double-entry accounting systems, each transaction affects at least two accounts in a way that the amounts sum to zero. This means that “funds move from one account to another” while the transactions of a particular account are the actual register. This will become more clear when we go into details of the foundation’s accounting.
Let us start with first describing what accounts we are looking into and what the hierarchy of accounts looks like:
BitSharesFoundation # Accounts controlled by the foundation bitshares.foundation # account `bitshares.foundation` donations.bitshares.foundation # account `donations.bitshares.foundation` BitSharesDAC # accounts joitnly owned by the BTS token holders (ultimately) workers.bitshares.foundation # account `workers.bitshares.foundation` BitSharesReserves # Funds obtained from the reserves (in BTS) Income # Income for the BitShares Blockchain Foundation Donations # How much did people donate (in USD terms) Expenses # Expenses TransactionFees # How much did we pay the network in transaction fees (in USD) WorkerProposals # Worker Proposal accounts Outstanding # How much do we "owe" escrow workers in total Proposals # How much have the workers been asking for initially
This hierarchy may be subject to change as we find more efficient ways to organize and use individual accounts.
The procedure of dealing with a worker proposal and its payment (if the BTS holders approve the worker) is as follows.
workers.bitshares.foundationaccount which has created the workers on the blockchain to begin with.
bitshares.foundationwith bitUSD (or possibly other bitassets)
It is important to remark that funds that are in
workers.bitshares.foundation are owned by the BTS holders and not technically owned by the foundation.
In order to keep track of which worker has obtained how many BTS (in the
workers.bitshares.foundation account), we make use of sub accounts where possible (see below). These sub accounts only appear in the accounting and are not reflected on the blockchain. After a worker has complete, we will thus be able to directly say how many BTS have been obtained from reserves, how many have been used to obtain USD and how many are to be returned to the reserves.
With the help of
ledger we can give a quick summary of the accounting and individual balances. Let’s dig into this real quick (state of 2017/09/29):
1 3,000 BEYONDBIT 2 13,196.23774 BTS 3 20.0000 CNY 4 23,400.0000 USD BitSharesFoundation 5 3,196.23774 BTS 6 23,400.0000 USD bitshares.foundation 7 23,000.0000 USD 201707-bsip18 8 -0.23131 BTS 9 400.0000 USD 201708-bitsharesui 10 3,000 BEYONDBIT 11 10,000.00000 BTS 12 20.0000 CNY donations.bitshares.foundation 13 -1,099,749.76262 BTS BitSharesReserves 14 -469,333.09938 BTS 201707-bsip18 15 -599,666.66324 BTS 201708-bitsharesui 16 -30,750.00000 BTS 201709-steemfest 17 578,259.29542 BTS 18 4,219.2236 USD BitSharesDAC:workers.bitshares.foundation 19 261,718.25619 BTS 20 421.0994 USD 201707-bsip18 21 282,879.53812 BTS 22 3,798.1242 USD 201708-bitsharesui 23 30,118.73689 BTS 201709-steemfest 24 438.6994 USD Expenses:TransactionFees 25 -3,000 BEYONDBIT 26 -10,000.00000 BTS 27 -20.0000 CNY 28 -1,000.0000 USD Income:Donations 29 26,812.5000 USD WorkerProposals 30 -152,853.5000 USD Outstanding 31 -23,000.0000 USD 201707-bsip18 32 -4,000.0000 USD chainsquad 33 -19,000.0000 USD cyrano 34 -123,187.5000 USD 201708-bitsharesui 35 -108,187.5000 USD bitshares-ui 36 -15,000.0000 USD chainsquad 37 -6,666.0000 USD 201709-steemfest:roelandp 38 179,666.0000 USD Proposals 39 23,000.0000 USD 201707-bsip18 40 150,000.0000 USD 201708-bitsharesui 41 6,666.0000 USD 201709-steemfest 42 -------------------- 43 -518,294.22946 BTS 44 53,870.4230 USD
bitshares.foundation. The BTS are for operational costs (tx fee) while the USD are separated into subaccounts for each individual worker for which the BitShares Blockchain Foundation is escrow for.
workers.bitshares.foundation. This account is owned by the BTS holders and used to track claiming of worker pay as well as trading. There is a separation into subaccounts for each individual worker.
Currently, the worker account only obtains USD by buying them from the internal markets. These orders are recorded on the blockchain as well as in the off-chain books. These entries look like this:
2017/09/13 * Create Order for 201707-bsip18 into USD @ 10.434788520 BTS/USD ; 201707-bsip18 -50000.0 BTS @ 10.43479 BTS ; 201707-bsip18 4791.66395 USD workers.bitshares.foundation:201707-bsip18 -0.01213 BTS @ 0.1092 USD Transactionfee (0.01213 * 0.1092 USD) P 2017/09/13 USD 9.69688187 BTS 2017/09/13 * Trade (#20011420) workers.bitshares.foundation:201707-bsip18 -209.10550 BTS workers.bitshares.foundation:201707-bsip18 21.5642 USD @@ 209.10550 BTS
Here, we created an order and payed a fee of 0.01213 BTS. Later on, this order is partially filled, obtaining roughly 21 USD by paying 209 BTS. There are plenty of those fill order transactions in each of the workers’ individual ledger files.
The corresponding account’s registers can be obtained with
ledger -f ledger.ledger reg workers.bitshares.foundation:201707
and looks like this
2017/09/13 Create Order for 201707-bsip18 into USD @ 10.434788520 BT.. BitShares:Foundation:workers.bitshares.foundation:201707-bsip18 -0.01213 BTS 273,166.59654 BTS 409.5059 USD 2017/09/13 Trade (#20011420) BitShares:Foundation:workers.bitshares.foundation:201707-bsip18 -209.10550 BTS 272,957.49104 BTS 409.5059 USD BitShares:Foundation:workers.bitshares.foundation:201707-bsip18 21.5642 USD 272,957.49104 BTS 431.0701 USD
Moving those funds into escrow is done with an entry of this type:
2017/09/13 * Transfering to bitshares.foundation 201707-bsip18 workers.bitshares.foundation:201707-bsip18 -5000.0 USD bitshares.foundation:201707-bsip18 5000.0 USD workers.bitshares.foundation:201707-bsip18 -0.23131 BTS @ 0.1095 USD Transactionfee (0.23131 * 0.1095 USD)
and results in a register entry similar to:
2017/09/13 Transfering to bitshares.foundation 201707-bsip18 BitShares:Foundation:workers.bitshares.foundation:201707-bsip18 -5,000.0000 USD 223,166.59654 BTS 269.9826 USD BitShares:Foundation:workers.bitshares.foundation:201707-bsip18 -0.23131 BTS 223,166.36523 BTS 269.9826 USD
As you can see, every action on the blockchain that affects the accounts balance, is also recorded in our books.
We would like to highlight a few points in what we were able to achieve in recent months:
In the outstanding worker operational costs for workers, you may have noticed that a fraction of the payouts (except for the steemfest worker) is asked for by the chainsquad account owned by ChainSquad GmbH. This fee covered the technical management of workers as well as developing automation for maintaining reoccurring tasks to facilitate escrow workers more efficiently over time. As these tools near completion, the fraction asked for in order to develop automation and development tools will drastically decrease.
Additionally to management tools, the code produced by freelancers needs to be reviewed by 3rd parties before funds can be released. This ensures that the produced code fits into the high quality standards of the existing code base. It is our wish to be able to hand over the work of auditing code to more and more entities (companies and individual high-profile developers) to grow the knowledge of the underlying technology. Hence, if you have a profile of providing excellent code review and have experience in the Graphene library, you may want to contact the BitShares Blockchain Foundation.
In the future you can expect regular updates on the accounting of BitShares Blockchain Foundation to ensure the highest standards in transparency and accountability. We feel the deep desire to support the BitShares community and ensure that uncertainties that appear are covered and resolved as quickly as possible.
Further, we hope that we can continue to grow our reputation within the BTS holders and the whole community to receive sufficient trust to do what we are planning to do with BitShares.
If you want to support our efforts, please don’t hesitate to get in contact with us (
firstname.lastname@example.org) or donate to
donations.bitshares.foundation. We would like to emphasise that the BitShares Blockchain Foundation is a registered non-profit entity in the Netherlands which means that all funds donated will need to go into following our foundations’ goals: Growing BitShares.