Ecoer Logo
VOTING POWER100.00%
DOWNVOTE POWER100.00%
RESOURCE CREDITS100.00%
REPUTATION PROGRESS0.00%
Net Worth
0.919USD
HIVE
0.430HIVE
HBD
0.000HBD
Own HP
1.867HP

Detailed Balance

HIVE
balance
0.430HIVE
market_balance
0.000HIVE
savings_balance
0.000HIVE
reward_hive_balance
0.000HIVE
HIVE POWER
Own HP
1.867HP
Delegated Out
0.000HP
Delegation In
0.000HP
Effective Power
1.867HP
Reward HP (pending)
0.000HP
HBD
hbd_balance
0.000HBD
hbd_conversions
0.000HBD
hbd_market_balance
0.000HBD
savings_hbd_balance
0.000HBD
reward_hbd_balance
0.000HBD
{
  "balance": "0.430 HIVE",
  "savings_balance": "0.000 HIVE",
  "reward_hive_balance": "0.000 HIVE",
  "vesting_shares": "3030.042186 VESTS",
  "delegated_vesting_shares": "0.000000 VESTS",
  "received_vesting_shares": "0.000000 VESTS",
  "hbd_balance": "0.000 HBD",
  "savings_hbd_balance": "0.000 HBD",
  "reward_hbd_balance": "0.000 HBD"
}

Account Info

nameobolus
id1171715
rank0
reputation0
created2018-11-14T09:33:09
recovery_accountblocktrades
proxyNone
invited_bynull
post_count2
comment_count0
lifetime_vote_count0
witnesses_voted_for0
last_post2019-07-09T08:45:42
last_root_post2019-07-09T08:45:42
last_vote_time1970-01-01T00:00:00
proxied_vsf_votes0, 0, 0, 0
can_vote1
voting_power0
delayed_votesNone
governance_vote_expiration_ts1969-12-31T23:59:59
balance0.430 HIVE
savings_balance0.000 HIVE
hbd_balance0.000 HBD
savings_hbd_balance0.000 HBD
vesting_shares3030.042186 VESTS
delegated_vesting_shares0.000000 VESTS
received_vesting_shares0.000000 VESTS
reward_vesting_balance0.000000 VESTS
vesting_balance0.000 HIVE
vesting_withdraw_rate0.000000 VESTS
next_vesting_withdrawal1969-12-31T23:59:59
withdrawn0
to_withdraw0
withdraw_routes0
savings_withdraw_requests0
last_account_recovery1970-01-01T00:00:00
reset_accountnull
last_owner_update1970-01-01T00:00:00
last_account_update2018-11-14T09:52:15
minedNo
hbd_seconds0
hbd_last_interest_payment1970-01-01T00:00:00
savings_hbd_last_interest_payment1970-01-01T00:00:00
{
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  "name": "obolus",
  "owner": {
    "weight_threshold": 1,
    "account_auths": [],
    "key_auths": [
      [
        "STM7eft6fR9pFhVNSxxGa8MTu9PuGzMUz8a9NZvw7zdbY2eTiUaUz",
        1
      ]
    ]
  },
  "active": {
    "weight_threshold": 1,
    "account_auths": [],
    "key_auths": [
      [
        "STM5DDz87Sv3LjhGvtVBuqdXnQWZY6VAzz1o2Vcouph3GEapTDvLp",
        1
      ]
    ]
  },
  "posting": {
    "weight_threshold": 1,
    "account_auths": [],
    "key_auths": [
      [
        "STM8MhT97VxudutZFWmhsGHBwiPFUp77MQD1s92rUTFEm9VNHuuW5",
        1
      ]
    ]
  },
  "memo_key": "STM8dF9cNzpbVF6eLqKoe8oevr9mKcbKV1tKWn6AbM579seV1QAyF",
  "json_metadata": "",
  "posting_json_metadata": "",
  "proxy": "",
  "previous_owner_update": "1970-01-01T00:00:00",
  "last_owner_update": "1970-01-01T00:00:00",
  "last_account_update": "2018-11-14T09:52:15",
  "created": "2018-11-14T09:33:09",
  "mined": false,
  "recovery_account": "blocktrades",
  "last_account_recovery": "1970-01-01T00:00:00",
  "reset_account": "null",
  "comment_count": 0,
  "lifetime_vote_count": 0,
  "post_count": 2,
  "can_vote": true,
  "voting_manabar": {
    "current_mana": 3030042186,
    "last_update_time": 1562661777
  },
  "downvote_manabar": {
    "current_mana": 0,
    "last_update_time": 1542187986
  },
  "voting_power": 0,
  "balance": "0.430 HIVE",
  "savings_balance": "0.000 HIVE",
  "hbd_balance": "0.000 HBD",
  "hbd_seconds": "0",
  "hbd_seconds_last_update": "1970-01-01T00:00:00",
  "hbd_last_interest_payment": "1970-01-01T00:00:00",
  "savings_hbd_balance": "0.000 HBD",
  "savings_hbd_seconds": "0",
  "savings_hbd_seconds_last_update": "1970-01-01T00:00:00",
  "savings_hbd_last_interest_payment": "1970-01-01T00:00:00",
  "savings_withdraw_requests": 0,
  "reward_hbd_balance": "0.000 HBD",
  "reward_hive_balance": "0.000 HIVE",
  "reward_vesting_balance": "0.000000 VESTS",
  "reward_vesting_hive": "0.000 HIVE",
  "vesting_shares": "3030.042186 VESTS",
  "delegated_vesting_shares": "0.000000 VESTS",
  "received_vesting_shares": "0.000000 VESTS",
  "vesting_withdraw_rate": "0.000000 VESTS",
  "post_voting_power": "3030.042186 VESTS",
  "next_vesting_withdrawal": "1969-12-31T23:59:59",
  "withdrawn": 0,
  "to_withdraw": 0,
  "withdraw_routes": 0,
  "pending_transfers": 0,
  "curation_rewards": 0,
  "posting_rewards": 0,
  "proxied_vsf_votes": [
    0,
    0,
    0,
    0
  ],
  "witnesses_voted_for": 0,
  "last_post": "2019-07-09T08:45:42",
  "last_root_post": "2019-07-09T08:45:42",
  "last_vote_time": "1970-01-01T00:00:00",
  "post_bandwidth": 0,
  "pending_claimed_accounts": 0,
  "governance_vote_expiration_ts": "1969-12-31T23:59:59",
  "delayed_votes": [],
  "open_recurrent_transfers": 0,
  "vesting_balance": "0.000 HIVE",
  "reputation": 0,
  "transfer_history": [],
  "market_history": [],
  "post_history": [],
  "vote_history": [],
  "other_history": [],
  "witness_votes": [],
  "tags_usage": [],
  "guest_bloggers": [],
  "rank": 0
}

Withdraw Routes

IncomingOutgoing
Empty
Empty
{
  "incoming": [],
  "outgoing": []
}
From Date
To Date
2019/11/14 10:31:03
authorsteemitboard
bodyCongratulations @obolus! You received a personal award! <table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@obolus/birthday1.png</td><td>Happy Birthday! - You are on the Steem blockchain for 1 year!</td></tr></table> <sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@obolus) and compare to others on the [Steem Ranking](https://steemitboard.com/ranking/index.php?name=obolus)_</sub> ###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!
json metadata{"image":["https://steemitboard.com/img/notify.png"]}
parent authorobolus
parent permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
permlinksteemitboard-notify-obolus-20191114t103058000z
title
Transaction InfoBlock #38165071/Trx de11ebd53b1136e49f255e06754fd0fd00cfe405
View Raw JSON Data
{
  "block": 38165071,
  "op": [
    "comment",
    {
      "author": "steemitboard",
      "body": "Congratulations @obolus! You received a personal award!\n\n<table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@obolus/birthday1.png</td><td>Happy Birthday! - You are on the Steem blockchain for 1 year!</td></tr></table>\n\n<sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@obolus) and compare to others on the [Steem Ranking](https://steemitboard.com/ranking/index.php?name=obolus)_</sub>\n\n\n###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!",
      "json_metadata": "{\"image\":[\"https://steemitboard.com/img/notify.png\"]}",
      "parent_author": "obolus",
      "parent_permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association",
      "permlink": "steemitboard-notify-obolus-20191114t103058000z",
      "title": ""
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2019-11-14T10:31:03",
  "trx_id": "de11ebd53b1136e49f255e06754fd0fd00cfe405",
  "trx_in_block": 20,
  "virtual_op": false
}
crypto.piotrsent 0.001 HIVE to @obolus- "Dear @obolus. I hope you don't mind this little memo. Every week I'm trying to help and promote content published by few selected authors and today I would like to share with you post published by my ..."
2019/08/30 09:21:54
amount0.001 HIVE
fromcrypto.piotr
memoDear @obolus. I hope you don't mind this little memo. Every week I'm trying to help and promote content published by few selected authors and today I would like to share with you post published by my friend @honarparvar: "WARNING: This might not be a trend!". I'm curious if you believe in TA and what's your opinion on using indicators while trading crypto. Share your opinion, I read all valuable comments. Piotr // LINK: https://steemit.com/trading/@honarparvar/warning-this-might-not-be-a-trend
toobolus
Transaction InfoBlock #35996171/Trx 481ce94f1ebd9e55a3cb34dd32b7490b3fc50a59
View Raw JSON Data
{
  "block": 35996171,
  "op": [
    "transfer",
    {
      "amount": "0.001 HIVE",
      "from": "crypto.piotr",
      "memo": "Dear @obolus. I hope you don't mind this little memo. Every week I'm trying to help and promote content published by few selected authors and today I would like to share with you post published by my friend @honarparvar: \"WARNING: This might not be a trend!\". I'm curious if you believe in TA and what's your opinion on using indicators while trading crypto. Share your opinion, I read all valuable comments. Piotr // LINK: https://steemit.com/trading/@honarparvar/warning-this-might-not-be-a-trend",
      "to": "obolus"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2019-08-30T09:21:54",
  "trx_id": "481ce94f1ebd9e55a3cb34dd32b7490b3fc50a59",
  "trx_in_block": 11,
  "virtual_op": false
}
crypto.piotrsent 0.003 HIVE to @obolus- "Dear @obolus, I hope you don't mind this little memo. I've noticed that we both seem to share some interests with Libra and I would like to share with you link to publication by my good friend @honarp..."
2019/08/22 17:15:24
amount0.003 HIVE
fromcrypto.piotr
memoDear @obolus, I hope you don't mind this little memo. I've noticed that we both seem to share some interests with Libra and I would like to share with you link to publication by my good friend @honarparvar, where we're discussing "Why Libra is getting so much attention". Personally I believe that this project isn't receiving enough attention and I would like to ask about your own feedback. I read and upvote all interesting comments. Yours, Piotr // LINK: https://steemit.com/cryptocurrency/@crypto.piotr/pwmocg
toobolus
Transaction InfoBlock #35780716/Trx 64b164b24a0857241c4e0155e0247014568a4f74
View Raw JSON Data
{
  "block": 35780716,
  "op": [
    "transfer",
    {
      "amount": "0.003 HIVE",
      "from": "crypto.piotr",
      "memo": "Dear @obolus, I hope you don't mind this little memo. I've noticed that we both seem to share some interests with Libra and I would like to share with you link to publication by my good friend @honarparvar, where we're discussing \"Why Libra is getting so much attention\". Personally I believe that this project isn't receiving enough attention and I would like to ask about your own feedback. I read and upvote all interesting comments. Yours, Piotr // LINK: https://steemit.com/cryptocurrency/@crypto.piotr/pwmocg",
      "to": "obolus"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2019-08-22T17:15:24",
  "trx_id": "64b164b24a0857241c4e0155e0247014568a4f74",
  "trx_in_block": 22,
  "virtual_op": false
}
2019/07/16 08:45:42
authorobolus
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
Transaction InfoBlock #34707882/Virtual Operation 4294967295:2
View Raw JSON Data
{
  "block": 34707882,
  "op": [
    "comment_payout_update",
    {
      "author": "obolus",
      "permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association"
    }
  ],
  "op_in_trx": 2,
  "timestamp": "2019-07-16T08:45:42",
  "trx_id": "0000000000000000000000000000000000000000",
  "trx_in_block": 4294967295,
  "virtual_op": true
}
2019/07/09 11:33:57
authorobolus
pending payout0.001 HBD
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
rshares1937430047
total vote weight46413
votermrakodrap
weight40629
Transaction InfoBlock #34509862/Trx b94a5c7c804bb0f15ae41df8e1ebb3d8d266564d
View Raw JSON Data
{
  "block": 34509862,
  "op": [
    "effective_comment_vote",
    {
      "author": "obolus",
      "pending_payout": "0.001 HBD",
      "permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association",
      "rshares": 1937430047,
      "total_vote_weight": 46413,
      "voter": "mrakodrap",
      "weight": 40629
    }
  ],
  "op_in_trx": 1,
  "timestamp": "2019-07-09T11:33:57",
  "trx_id": "b94a5c7c804bb0f15ae41df8e1ebb3d8d266564d",
  "trx_in_block": 10,
  "virtual_op": true
}
2019/07/09 11:33:57
authorobolus
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
votermrakodrap
weight1000 (10.00%)
Transaction InfoBlock #34509862/Trx b94a5c7c804bb0f15ae41df8e1ebb3d8d266564d
View Raw JSON Data
{
  "block": 34509862,
  "op": [
    "vote",
    {
      "author": "obolus",
      "permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association",
      "voter": "mrakodrap",
      "weight": 1000
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2019-07-09T11:33:57",
  "trx_id": "b94a5c7c804bb0f15ae41df8e1ebb3d8d266564d",
  "trx_in_block": 10,
  "virtual_op": false
}
2019/07/09 09:13:48
authorobolus
pending payout0.000 HBD
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
rshares30607894
total vote weight5784
voterfyrstikken
weight5784 (57.84%)
Transaction InfoBlock #34507061/Trx 58a12b843f389e90be0672114a231a6f4c2b1c9d
View Raw JSON Data
{
  "block": 34507061,
  "op": [
    "effective_comment_vote",
    {
      "author": "obolus",
      "pending_payout": "0.000 HBD",
      "permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association",
      "rshares": 30607894,
      "total_vote_weight": 5784,
      "voter": "fyrstikken",
      "weight": 5784
    }
  ],
  "op_in_trx": 1,
  "timestamp": "2019-07-09T09:13:48",
  "trx_id": "58a12b843f389e90be0672114a231a6f4c2b1c9d",
  "trx_in_block": 19,
  "virtual_op": true
}
2019/07/09 09:13:48
authorobolus
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
voterfyrstikken
weight100 (1.00%)
Transaction InfoBlock #34507061/Trx 58a12b843f389e90be0672114a231a6f4c2b1c9d
View Raw JSON Data
{
  "block": 34507061,
  "op": [
    "vote",
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      "author": "obolus",
      "permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association",
      "voter": "fyrstikken",
      "weight": 100
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  ],
  "op_in_trx": 0,
  "timestamp": "2019-07-09T09:13:48",
  "trx_id": "58a12b843f389e90be0672114a231a6f4c2b1c9d",
  "trx_in_block": 19,
  "virtual_op": false
}
2019/07/09 08:45:45
allow curation rewardstrue
allow votestrue
authorobolus
extensions[]
max accepted payout1000000.000 HBD
percent hbd0
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
Transaction InfoBlock #34506501/Trx 9153bc5dae0f3a332bec51d30a5f6f4759b5d1e7
View Raw JSON Data
{
  "block": 34506501,
  "op": [
    "comment_options",
    {
      "allow_curation_rewards": true,
      "allow_votes": true,
      "author": "obolus",
      "extensions": [],
      "max_accepted_payout": "1000000.000 HBD",
      "percent_hbd": 0,
      "permlink": "costs-and-benefits-of-being-a-founding-member-of-the-libra-association"
    }
  ],
  "op_in_trx": 1,
  "timestamp": "2019-07-09T08:45:45",
  "trx_id": "9153bc5dae0f3a332bec51d30a5f6f4759b5d1e7",
  "trx_in_block": 6,
  "virtual_op": false
}
2019/07/09 08:45:45
authorobolus
body![man-holding-dollar-note.jpeg](https://cdn.steemitimages.com/DQmdmHLXgA9g98APDJy3BYRKZsKgZj6nS4dVJZpSzQaSUtT/man-holding-dollar-note.jpeg) # 1. The Libra Association The association behind the Libra cryptocurrency, the brainchild of Facebook, has been created to decentralise the Libra network and ensure trust by its users. Arguably, worldwide distribution of the power among the one hundred founding members of the association could achieve just that. The membership is, however, only granted an exclusive club of companies and organisations. In this article we analyse, from a pure financial standpoint, how profitable it is to become a founding member of the Libra Association. # 2. Costs There are upfront costs to become a founding member. As of now, 28 founding members are already determined and they each paid a fee of $10M to bootstrap the development of Libra and its adoption. There are still many spots to be filled but given the global interest in Libra there is little doubt that more founding members will apply. The admission fee is likely to go up if too many institutions apply. Furthermore, being a member with a validator node inflicts running costs. ## 2.1. Hardware to run a validator node Here we assume the case of a cloud-based node because the prices are readily accessible. Libra nodes require large high-performance storage capacity. In fact, costs for running on-premise infrastructure are typically lower for fast systems with big capacity. Libra foundation recommends instances on AWS of the tier “m5.24xlarge” which has 96 cores, 384 GB RAM and 25 GBit/s public bandwidth. In our experience this is overestimating current hardware requirements to e.g. run similar blockchain nodes (for instance EOS mainnet nodes that support up to 5000 transactions per second). The recommended AWS instance comes with plenty of RAM. Yet, utilizing the many cores is tricky and often nodes run single-threaded except for some actions like signature validation. The hardware can therefore be better balanced if one does not rely on AWS. On AWS one instance costs around $3400 per month. Another big cost is storage. With 4 billion users, and about 3 kb storage per user, 12 TB of SSD storage is required. EBS storage on AWS provides SSD space with slow 250MBit/s bandwidth. Again AWS is not optimal but we’ll go with it for now. At $0.1/GB it sums up to another $1200 per month. Here we would like to note that currently SSDs up to 30 TB can be purchased at about $0.3/GB fixed costs can be purchased if servers are being used. For the whole system which would consist of two main net nodes, two test net nodes, load balancers and 0.5 FTE system administrator ($50k per year), the cost totals to about **$270k per year**. Component | # | Yearly Price/Item | Yearly Price ------------ | ------------- | ------------- | ------------- M5.24 xlarge instance | 4 | $40,800 |$163,200 EBS (12 TB of SSD) | 4 | $14,400 | $57,600 System Admin | 1 | | $50,000 **Total** | | | **270,800** ## 2.2 Other obligations In the document published by the Libra Association called “The Reserve” [1] we can see that earnings (see Section 3.3.) will be spent on > investments in the growth and development of the ecosystem, grants to nonprofit and multilateral organizations, engineering research, etc. These costs will not be paid by the founding members directly but will be subtracted from the dividends the members receive. There is no clear directive as to how much this might be but other blockchain projects have reserved hundreds of millions of dollars for such purpose. If a substantial sum, for example, $100M per year were spent on these investments, each founding member would receive **$1M per year less** dividends. # 3. Benefits The Libra Association describes the benefits of being a member in its technical whitepaper [3] as follows: > 1. An active role in association governance. > 1. Being eligible for new user incentives and transaction rebates. > 1. Deriving dividends from Libra Investment Tokens.” ## 3.1. Role in the Governance One of the roles as a member of the Libra Association will probably be assigning the basket of real assets that will back the Libra token. The Libra whitepaper [4] says the Libra token will be backed by, among others, a basket of currencies at its inception. The exact composition is not specified yet but likely to include USD, EUR, JPY, and GBP (We will see other countries lobbying to include their currency as well as association members that run a cryptocurrency fund pushing for the inclusion of BTC). The selection of assets as well as their weight distribution will be defined by the association. Also bonds will play a role in the Reserve. Taking part in these decisions can therefore influence the economy of other countries to a certain extent and grant significant power to founding members. The Libra Association also determines which investments are being made and which projects should be funded to strengthen the ecosystem. ## 3.2. User incentives and transaction rebates This item is left very unclear. One explanation is what has been done for other blockchains: a block reward for the entities running the validator nodes. If the network will require “gas” for the transactions, these user incentives could go to the validators. On the other hand, transactions by the founding member might be subsidised. ## 3.3. What is the Libra Investment Token? Libra Investment Tokens (LIT) are given to the early founding members that invested $10M or more. Each $10M will give them 1 vote, however, little is known how votes are connected to LIT as of now. One sensible scenario is that votes, which are used on-chain, are determined by the amount of LIT held. If there are 100 members and 10 invested $20M instead of $10M, there is a total of 110 votes. Even for the larger investors the voting power is capped to 1% but the dividends would be 1/55. Assets that back the Libra coin are referred to as the Libra Reserve. > The actual assets will be a collection of low-volatility assets, including bank deposits and government securities in currencies from stable and reputable central banks [2] This means once fiat money is deposited into the authorised resellers and new Libra coins are minted/burned, more assets need to be bought /sold. The management of the Reserve will be handled by the Libra Association. There are trading and management fees attached to changing the number of assets held. The trading size depends on the amount of minting and burning, which is independent, but, if done right, less than the size of the Reserve. For this type of passive investment we need to **subtract less than 0.2%** management fee from any interest/dividends of the assets. Assuming a reasonable scenario where 1 billion users each have on average $50 in their account returns (fees and costs from above subtracted) could be as high as **$8.7M/year** with 2.2% APR and flat distribution of LIT. # 4. Conclusion An important message is that all profits of Libra are generated with assets of the users (other stable coins like USDT and USDC follow the same business model). Basically, the users pay for using the service by not having the money in a bank account and receiving interest. Since banks in the current environment do not offer high interest rates to their customers, this does not matter much within the next few years but it will when interest rates start increasing again. The ROI for founding members is substantial (possibly **$8.7M/year**) if the network is reasonably successful. Altogether, holding the Libra Investment Token will generate a large revenue stream. There is a risk that interest rates go up and users of Libra will be less inclined to store their money in Libra accounts. Also the technical challenge to process transactions of more than a billion users might keep user experience (and deposited fiat money) low, resulting in smaller ROI. Costs of running the nodes are high for end-users but for founding members easily recovered. # References [1] https://libra.org/en-US/about-currency-reserve/#the_reserve, accessed 2019-07-04 [2] https://developers.libra.org/docs/the-libra-blockchain-paper, accessed 2019-07-04 [3] https://libra.org/en-US/becoming-founding-member/#overview, accessed 2019-07-04 [4] https://libra.org/en-US/white-paper/, accessed 2019-07-04 **Note:** This article is part of a series of articles released for the [Japan Libra Association (JIBRA)](www.jibra.org) ![jibra-logo-text.png](https://cdn.steemitimages.com/DQmbh1TutbFgHQpmgXzXWfeLNfXB6zZy9L6NSFQB36zBHto/jibra-logo-text.png)
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parent author
parent permlinklibra
permlinkcosts-and-benefits-of-being-a-founding-member-of-the-libra-association
titleCosts and Benefits of Being a Founding Member of the Libra Association
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      "body": "![man-holding-dollar-note.jpeg](https://cdn.steemitimages.com/DQmdmHLXgA9g98APDJy3BYRKZsKgZj6nS4dVJZpSzQaSUtT/man-holding-dollar-note.jpeg)\n\n# 1. The Libra Association\nThe association behind the Libra cryptocurrency, the brainchild of Facebook, has been created to decentralise the Libra network and ensure trust by its users. Arguably, worldwide distribution of the power among the one hundred founding members of the association could achieve just that. The membership is, however, only granted an exclusive club of companies and organisations. In this article we analyse, from a pure financial standpoint, how profitable it is to become a founding member of the Libra Association.\n# 2. Costs\nThere are upfront costs to become a founding member. As of now, 28 founding members are already determined and they each paid a fee of $10M to bootstrap the development of Libra and its adoption. There are still many spots to be filled but given the global interest in Libra there is little doubt that more founding members will apply. The admission fee is likely to go up if too many institutions apply.\nFurthermore, being a member with a validator node inflicts running costs.\n## 2.1. Hardware to run a validator node\nHere we assume the case of a cloud-based node because the prices are readily accessible. Libra nodes require large high-performance storage capacity. In fact, costs for running on-premise infrastructure are typically lower for fast systems with big capacity.\nLibra foundation recommends instances on AWS of the tier “m5.24xlarge” which has 96 cores, 384 GB RAM and 25 GBit/s public bandwidth. In our experience this is overestimating current hardware requirements to e.g. run similar blockchain nodes (for instance EOS mainnet nodes that support up to 5000 transactions per second). The recommended AWS instance comes with plenty of RAM. Yet, utilizing the many cores is tricky and often nodes run single-threaded except for some actions like signature validation. The hardware can therefore be better balanced if one does not rely on AWS. On AWS one instance costs around $3400 per month.\n\nAnother big cost is storage. With 4 billion users, and about 3 kb storage per user, 12 TB of SSD storage is required. EBS storage on AWS provides SSD space with slow 250MBit/s bandwidth. Again AWS is not optimal but we’ll go with it for now. At $0.1/GB it sums up to another $1200 per month. Here we would like to note that currently SSDs up to 30 TB can be purchased at about $0.3/GB fixed costs can be purchased if servers are being used.\n\nFor the whole system which would consist of two main net nodes, two test net nodes, load balancers and 0.5 FTE system administrator ($50k per year), the cost totals to about **$270k per year**.\n\nComponent | # | Yearly Price/Item | Yearly Price \n------------ | ------------- | ------------- | -------------\nM5.24 xlarge instance | 4 | $40,800 |$163,200\nEBS (12 TB of SSD) | 4 | $14,400 | $57,600\nSystem Admin | 1 | | $50,000 \n**Total** | | | **270,800**\n\n## 2.2 Other obligations\nIn the document published by the Libra Association called “The Reserve” [1] we can see that earnings (see Section 3.3.) will be spent on\n> investments in the growth and development of the ecosystem, grants to nonprofit and multilateral organizations, engineering research, etc.\n\nThese costs will not be paid by the founding members directly but will be subtracted from the dividends the members receive. There is no clear directive as to how much this might be but other blockchain projects have reserved hundreds of millions of dollars for such purpose. If a substantial sum, for example, $100M per year were spent on these investments, each founding member would receive **$1M per year less** dividends.\n# 3. Benefits\nThe Libra Association describes the benefits of being a member in its technical whitepaper [3] as follows:\n> 1. An active role in association governance.\n> 1. Being eligible for new user incentives and transaction rebates.\n> 1. Deriving dividends from Libra Investment Tokens.”\n\n## 3.1. Role in the Governance\nOne of the roles as a member of the Libra Association will probably be assigning the basket of real assets that will back the Libra token. The Libra whitepaper [4] says the Libra token will be backed by, among others, a basket of currencies at its inception. The exact composition is not specified yet but likely to include USD, EUR, JPY, and GBP (We will see other countries lobbying to include their currency as well as association members that run a cryptocurrency fund pushing for the inclusion of BTC). The selection of assets as well as their weight distribution will be defined by the association. Also bonds will play a role in the Reserve. Taking part in these decisions can therefore influence the economy of other countries to a certain extent and grant significant power to founding members.\nThe Libra Association also determines which investments are being made and which projects should be funded to strengthen the ecosystem.\n## 3.2. User incentives and transaction rebates\nThis item is left very unclear. One explanation is what has been done for other blockchains: a block reward for the entities running the validator nodes. If the network will require “gas” for the transactions, these user incentives could go to the validators. On the other hand, transactions by the founding member might be subsidised.\n## 3.3. What is the Libra Investment Token?\nLibra Investment Tokens (LIT) are given to the early founding members that invested $10M or more. Each $10M will give them 1 vote, however, little is known how votes are connected to LIT as of now. One sensible scenario is that votes, which are used on-chain, are determined by the amount of LIT held. If there are 100 members and 10 invested $20M instead of $10M, there is a total of 110 votes. Even for the larger investors the voting power is capped to 1% but the dividends would be 1/55.\n\nAssets that back the Libra coin are referred to as the Libra Reserve. \n> The actual assets will be a collection of low-volatility assets, including bank deposits and government securities in currencies from stable and reputable central banks [2]\n\nThis means once fiat money is deposited into the authorised resellers and new Libra coins are minted/burned, more assets need to be bought /sold. The management of the Reserve will be handled by the Libra Association. There are trading and management fees attached to changing the number of assets held. The trading size depends on the amount of minting and burning, which is independent, but, if done right, less than the size of the Reserve. For this type of passive investment we need to **subtract less than 0.2%** management fee from any interest/dividends of the assets.\n\nAssuming a reasonable scenario where 1 billion users each have on average $50 in their account returns (fees and costs from above subtracted) could be as high as **$8.7M/year** with 2.2% APR and flat distribution of LIT.\n\n# 4. Conclusion\nAn important message is that all profits of Libra are generated with assets of the users (other stable coins like USDT and USDC follow the same business model). Basically, the users pay for using the service by not having the money in a bank account and receiving interest. Since banks in the current environment do not offer high interest rates to their customers, this does not matter much within the next few years but it will when interest rates start increasing again.\n\nThe ROI for founding members is substantial (possibly **$8.7M/year**) if the network is reasonably successful. Altogether, holding the Libra Investment Token will generate a large revenue stream. There is a risk that interest rates go up and users of Libra will be less inclined to store their money in Libra accounts. Also the technical challenge to process transactions of more than a billion users might keep user experience (and deposited fiat money) low, resulting in smaller ROI. Costs of running the nodes are high for end-users but for founding members easily recovered.\n\n\n# References\n[1] https://libra.org/en-US/about-currency-reserve/#the_reserve, accessed 2019-07-04\n[2] https://developers.libra.org/docs/the-libra-blockchain-paper, accessed 2019-07-04\n[3] https://libra.org/en-US/becoming-founding-member/#overview, accessed 2019-07-04\n[4] https://libra.org/en-US/white-paper/, accessed 2019-07-04\n\n**Note:** This article is part of a series of articles released for the [Japan Libra Association (JIBRA)](www.jibra.org)\n![jibra-logo-text.png](https://cdn.steemitimages.com/DQmbh1TutbFgHQpmgXzXWfeLNfXB6zZy9L6NSFQB36zBHto/jibra-logo-text.png)",
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blocktradesblockchain operation: transfer to vesting completed
2019/07/09 08:43:00
from accountblocktrades
hive vested1.524 HIVE
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blocktradespowered up 1.524 HIVE to @obolus
2019/07/09 08:43:00
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2019/06/21 06:58:27
authorobolus
permlinkeos42-audits-and-verifies-the-security-of-the-obolus-smart-contract-powering-switcheo-exchange
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2019/06/19 15:49:30
authorobolus
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2019/06/19 15:49:30
authorobolus
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2019/06/14 07:11:27
authorobolus
body@@ -25,18 +25,18 @@ y Audit. -sv +pn g%5D(https @@ -67,52 +67,52 @@ /DQm -a2LkHxpy6Q94UM6stevMq5JKXv3th4iSLmErknv9sQTZ +VKUeqGYsUeHGCm5UaNpAPhzvWL41yDGwXA7Ca32dLHbQ /Sma @@ -148,12 +148,14 @@ dit. -svg) +png)%0A%0A On M @@ -1914,161 +1914,4 @@ pto) - %0A!%5BSmart Contract Security Audit.png%5D(https://cdn.steemitimages.com/DQmVKUeqGYsUeHGCm5UaNpAPhzvWL41yDGwXA7Ca32dLHbQ/Smart%2520Contract%2520Security%2520Audit.png)
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parent author
parent permlinkblockchain
permlinkeos42-audits-and-verifies-the-security-of-the-obolus-smart-contract-powering-switcheo-exchange
titleEOS42 Audits and Verifies the Security of the Obolus Smart Contract Powering Switcheo Exchange
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2019/06/14 07:03:48
authorswitcheo
permlinkswitcheo-exchange-goes-live-on-eos
voterobolus
weight10000 (100.00%)
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2019/06/14 06:58:30
authorobolus
body![Smart Contract Security Audit.svg](https://cdn.steemitimages.com/DQma2LkHxpy6Q94UM6stevMq5JKXv3th4iSLmErknv9sQTZ/Smart%20Contract%20Security%20Audit.svg)On May 27, 2019 EOS42 completed and issued an auditor’s report of the Obolus Smart Contract that powers EOS trading on [Switcheo Exchange](https://switcheo.exchange/markets/EFX_EOS?utm_source=obolus&utm_medium=steemit&utm_campaign=pressrelease&utm_content=audit). Apart from its involvement in the smart contract security business, EOS42 is also well known as a top block producer on the EOS blockchain and responsible for [Chintai](https://chintai.io/), the largest resource exchange in EOS. The lead auditor, Phillip Hamnett, who has reached an even higher reputation score than Dan Larimer on [Stack Exchange](https://eosio.stackexchange.com), previously audited large exchanges and platforms in blockchain resource and human resources. The goal of the audit was to corroborate the smart contract’s security and to ensure the contract’s ability to safeguard funds. The audit included a comprehensive source code review in order to identify any vulnerabilities in the contract. We are proud to report that Obolus Smart Contract was found to have no vulnerabilities nor outstanding issues. Hamnett reports that “[t]he contract conforms to all standards and is in very good condition.” All best practices for smart contract development on the EOSIO platform are applied. For more details, you can read the complete report [here](https://github.com/oboluscrypto/audit-reports/blob/master/Obolus%20Switcheo%20EOS%20DEX%20Smart%20Contract%20Audit%20Report.pdf). We always welcome any feedback from the community, so do drop us a note or join our channels below: · [Twitter](https://twitter.com/ObolusCrypto) · [Github](https://github.com/oboluscrypto) · [Telegram](https://t.me/ObolusOfficial) · [LinkedIn](https://linkedin.com/company/obolus-crypto) ![Smart Contract Security Audit.png](https://cdn.steemitimages.com/DQmVKUeqGYsUeHGCm5UaNpAPhzvWL41yDGwXA7Ca32dLHbQ/Smart%20Contract%20Security%20Audit.png)
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parent permlinkblockchain
permlinkeos42-audits-and-verifies-the-security-of-the-obolus-smart-contract-powering-switcheo-exchange
titleEOS42 Audits and Verifies the Security of the Obolus Smart Contract Powering Switcheo Exchange
Transaction InfoBlock #33785461/Trx e2a5e3060ebe82c3959b67906ddcdd37d51f24fa
View Raw JSON Data
{
  "block": 33785461,
  "op": [
    "comment",
    {
      "author": "obolus",
      "body": "![Smart Contract Security Audit.svg](https://cdn.steemitimages.com/DQma2LkHxpy6Q94UM6stevMq5JKXv3th4iSLmErknv9sQTZ/Smart%20Contract%20Security%20Audit.svg)On May 27, 2019 EOS42 completed and issued an auditor’s report of the Obolus Smart Contract that powers EOS trading on [Switcheo Exchange](https://switcheo.exchange/markets/EFX_EOS?utm_source=obolus&utm_medium=steemit&utm_campaign=pressrelease&utm_content=audit). \n\nApart from its involvement in the smart contract security business, EOS42 is also well known as a top block producer on the EOS blockchain and responsible for [Chintai](https://chintai.io/), the largest resource exchange in EOS. The lead auditor, Phillip Hamnett, who has reached an even higher reputation score than Dan Larimer on [Stack Exchange](https://eosio.stackexchange.com), previously audited large exchanges and platforms in blockchain resource and human resources.\n\nThe goal of the audit was to corroborate the smart contract’s security and to ensure the contract’s ability to safeguard funds. The audit included a comprehensive source code review in order to identify any vulnerabilities in the contract. \n\nWe are proud to report that Obolus Smart Contract was found to have no vulnerabilities nor outstanding issues. Hamnett reports that “[t]he contract conforms to all standards and is in very good condition.” All best practices for smart contract development on the EOSIO platform are applied. \n \nFor more details, you can read the complete report [here](https://github.com/oboluscrypto/audit-reports/blob/master/Obolus%20Switcheo%20EOS%20DEX%20Smart%20Contract%20Audit%20Report.pdf).\n \n\nWe always welcome any feedback from the community, so do drop us a note or join our channels below:\n· [Twitter](https://twitter.com/ObolusCrypto)\n· [Github](https://github.com/oboluscrypto) \n· [Telegram](https://t.me/ObolusOfficial) \n· [LinkedIn](https://linkedin.com/company/obolus-crypto) \n![Smart Contract Security Audit.png](https://cdn.steemitimages.com/DQmVKUeqGYsUeHGCm5UaNpAPhzvWL41yDGwXA7Ca32dLHbQ/Smart%20Contract%20Security%20Audit.png)",
      "json_metadata": "{\"tags\":[\"blockchain\",\"smartcontract\",\"dex\",\"crypto\",\"security\"],\"image\":[\"https://cdn.steemitimages.com/DQma2LkHxpy6Q94UM6stevMq5JKXv3th4iSLmErknv9sQTZ/Smart%20Contract%20Security%20Audit.svg\",\"https://cdn.steemitimages.com/DQmVKUeqGYsUeHGCm5UaNpAPhzvWL41yDGwXA7Ca32dLHbQ/Smart%20Contract%20Security%20Audit.png\"],\"links\":[\"https://switcheo.exchange/markets/EFX_EOS?utm_source=obolus&utm_medium=steemit&utm_campaign=pressrelease&utm_content=audit\",\"https://chintai.io/\",\"https://eosio.stackexchange.com\",\"https://github.com/oboluscrypto/audit-reports/blob/master/Obolus%20Switcheo%20EOS%20DEX%20Smart%20Contract%20Audit%20Report.pdf\",\"https://twitter.com/ObolusCrypto\",\"https://github.com/oboluscrypto\",\"https://t.me/ObolusOfficial\",\"https://linkedin.com/company/obolus-crypto\"],\"app\":\"steemit/0.1\",\"format\":\"markdown\"}",
      "parent_author": "",
      "parent_permlink": "blockchain",
      "permlink": "eos42-audits-and-verifies-the-security-of-the-obolus-smart-contract-powering-switcheo-exchange",
      "title": "EOS42 Audits and Verifies the Security of the Obolus Smart Contract Powering Switcheo Exchange"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2019-06-14T06:58:30",
  "trx_id": "e2a5e3060ebe82c3959b67906ddcdd37d51f24fa",
  "trx_in_block": 11,
  "virtual_op": false
}
2019/04/16 09:53:42
idfollow
json["follow",{"follower":"obolus","following":"switcheo","what":["blog"]}]
required auths[]
required posting auths["obolus"]
Transaction InfoBlock #32091092/Trx 395ebe8e828344eab68a444b3d4f87a59de88a3a
View Raw JSON Data
{
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  "op": [
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  "timestamp": "2019-04-16T09:53:42",
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}
2018/11/14 10:11:36
authordan
permlinkeos-example-exchange-contract-and-benefits-of-c
voterobolus
weight10000 (100.00%)
Transaction InfoBlock #27689779/Trx 2951dcec365710d47c5f4b800c989e236c14c87c
View Raw JSON Data
{
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  "op": [
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  "trx_id": "2951dcec365710d47c5f4b800c989e236c14c87c",
  "trx_in_block": 1,
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}
obolusupdated their account properties
2018/11/14 09:52:18
accountobolus
json metadata{"profile":{"profile_image":"https://cdn.steemitimages.com/DQmVt8FPatUuf1Lf48HzgvDuebV5fS3Hdn9okbxcbDDsuHL/logo_trans.png","name":"Obolus","website":"https://www.obolus.com"}}
memo keySTM8dF9cNzpbVF6eLqKoe8oevr9mKcbKV1tKWn6AbM579seV1QAyF
Transaction InfoBlock #27689393/Trx 7708636aa3c0b656995abf84ebf8e1165f894bae
View Raw JSON Data
{
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  "op": [
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      "memo_key": "STM8dF9cNzpbVF6eLqKoe8oevr9mKcbKV1tKWn6AbM579seV1QAyF"
    }
  ],
  "op_in_trx": 0,
  "timestamp": "2018-11-14T09:52:18",
  "trx_id": "7708636aa3c0b656995abf84ebf8e1165f894bae",
  "trx_in_block": 20,
  "virtual_op": false
}
blocktradessent 0.426 HIVE to @obolus
2018/11/14 09:33:09
amount0.426 HIVE
fromblocktrades
memo
toobolus
Transaction InfoBlock #27689010/Trx 2906c2df84a6afc0bdcad5b0d4c6c948d89e7f49
View Raw JSON Data
{
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  "op": [
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      "from": "blocktrades",
      "memo": "",
      "to": "obolus"
    }
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  "op_in_trx": 2,
  "timestamp": "2018-11-14T09:33:09",
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  "trx_in_block": 4,
  "virtual_op": false
}
blocktradesaccount was created by @blocktrades
2018/11/14 09:33:09
creatorblocktrades
initial delegation0.000000 VESTS
initial vesting shares0.000000 VESTS
new account nameobolus
Transaction InfoBlock #27689010/Trx 2906c2df84a6afc0bdcad5b0d4c6c948d89e7f49
View Raw JSON Data
{
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  ],
  "op_in_trx": 1,
  "timestamp": "2018-11-14T09:33:09",
  "trx_id": "2906c2df84a6afc0bdcad5b0d4c6c948d89e7f49",
  "trx_in_block": 4,
  "virtual_op": true
}
blocktradescreated a new account: @obolus
2018/11/14 09:33:09
active{"account_auths":[],"key_auths":[["STM5DDz87Sv3LjhGvtVBuqdXnQWZY6VAzz1o2Vcouph3GEapTDvLp",1]],"weight_threshold":1}
creatorblocktrades
extensions[]
json metadata{}
memo keySTM8dF9cNzpbVF6eLqKoe8oevr9mKcbKV1tKWn6AbM579seV1QAyF
new account nameobolus
owner{"account_auths":[],"key_auths":[["STM7eft6fR9pFhVNSxxGa8MTu9PuGzMUz8a9NZvw7zdbY2eTiUaUz",1]],"weight_threshold":1}
posting{"account_auths":[],"key_auths":[["STM8MhT97VxudutZFWmhsGHBwiPFUp77MQD1s92rUTFEm9VNHuuW5",1]],"weight_threshold":1}
Transaction InfoBlock #27689010/Trx 2906c2df84a6afc0bdcad5b0d4c6c948d89e7f49
View Raw JSON Data
{
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  "trx_id": "2906c2df84a6afc0bdcad5b0d4c6c948d89e7f49",
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}

Account Metadata

POSTING JSON METADATA
None
JSON METADATA
None
{
  "posting_json_metadata": {},
  "json_metadata": {}
}

Auth Keys

Owner
Single Signature
Public Keys
STM7eft6fR9pFhVNSxxGa8MTu9PuGzMUz8a9NZvw7zdbY2eTiUaUz1/1
Active
Single Signature
Public Keys
STM5DDz87Sv3LjhGvtVBuqdXnQWZY6VAzz1o2Vcouph3GEapTDvLp1/1
Posting
Single Signature
Public Keys
STM8MhT97VxudutZFWmhsGHBwiPFUp77MQD1s92rUTFEm9VNHuuW51/1
Memo
STM8dF9cNzpbVF6eLqKoe8oevr9mKcbKV1tKWn6AbM579seV1QAyF
{
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}

Witness Votes

0 / 30
No active witness votes.
[]