Overview

A so called worker proposal on the BitShares Blockchain is a means to get rewarded for contributing to the BitShares ecosystem realized in a decentralized and trustless way on the blockchain. Once a worker proposal is approved by the BTS holders, funds are obtained in BTS through an algorithm from the working budget of the BitShares DAC.

An overview of all current worker proposals on the BitShares Blockchain is available here.

Background

The BitShares Blockchain in its technical implementation only knows one type of worker proposal. It contains a name, reward receiving account, daily BTS rate and a link to provide insight into the purpose of the worker proposal. Anyone can create a worker proposal on-chain, and afterwards all BTS token holders can vote on it. If it passes the threshold given by the refund workers and receives at least part of the asked daily BTS, it is considered active.

The BitShares community informally split worker proposal into two types, reward and opinion worker proposals. The former is meant to provide BTS for a kind of activity as defined by the worker proposal, the latter is meant to make strategic decisions and to agree on the consensus changing development and introducing new features of the BitShares core (BitShares Improvement Proposals).

There are facilitating possibilities with an external company to provide participants of a Worker Proposal with an Escrow service.

In the following section more details are presented into an exemplary escrow services. This may not be an exhaustive description, yet is an attempt to outline best practices. The BitShares Blockchain Foundation itself does not offer escrow services.

How does an escrow procedure typically work

For worker proposals, an escrow service offers the following value propositions:

Certainly using escrow services introduces additional overhead and requires both trust from the BTS token holders and the freelancer.

The purpose of such a service is to provide security and transparency to both parties, the BitShares DAC, as well as the freelancer that performs the work in expectation of receiving BTS. Setting up a worker proposal with an Escrow service normally sticks to the following flow:

  1. Establishing agreement for Escrow service for a defined task, review and iterate
  2. Setting up a worker proposal on-chain
  3. Escrow obtains BTS from reserves as agreed by majority vote in BTS holders
  4. BTS can be exchanged into SmartCoins or other assets according to the agreement
  5. Freelancer proves delivery
  6. Escrow reviews delivery and invoice
  7. Freelancer receives rewards
  8. Escrow service returns excess BTS to Working Budget of the DAC

Reward worker proposals

Rewards worker proposals may be divided into two sub-types, namely escrow and budget workers.

Remark 1 A reward on a worker can only send BTS that have been obtained through the corresponding worker being active. The freelancer himself monitors at all times the status of the worker and available budget.

Remark 2 If not otherwise agreed and mentioned in the specific worker proposal, usually an 5% escrow fee is applied to a reward on workers. This fee is applicable for each outgoing amount and needs to be accounted for publicly for each worker.

Remark 3 An Escrow service is always separately agreed with either a legal entity or an individual that has been identified with their real-world identity. Usually there is a two months deadline after the handover of the delivery (e.g. when a sprint or milestone has been completed). After this deadline has passed, deliveries will be considered most welcome volunteer contribution.

Escrow Worker Model

The purpose of escrow workers is to ensure proper rewarding for the work provided over a period of time and absorb volatility of the BTS token during that time. Both the freelancer and the BitShares DAC may experience a reduced risk during an escrowed worker proposal, especially in longer agreements.

Budget Worker Model

Budget workers serve as workers that might provide a solution for specific purposes where escrow workers do not fit, such as translation work, bug fixing or bounties. The rules could be as follows:

Opinion worker proposals

BSIP Worker Model

BSIP is the abbreviation for BitShares Improvement Proposal and is describes the procedure of improving the BitShares protocol. Every major change to the behavior of the BitShares Blockchain requires approval by BTS holders by means of approval voting. This is implemented by means of a BSIP worker.

Transparency

Escrow arrangements should be open and transparent on-line where it concerns dealings with BTS and the BitShares DAC. All its accounting should be visible for all anonymous parties to see on-line.

Beneficiaries and Reports

Escrow organisations need to be compliant. Beneficiaries of any of these models will be asked to authenticate themselves with their real-world identity. Due to the nature of being a public decentralized blockchain, all reports for reward request must be published on line. An approval procedure needs to be in place.