5

I do trust the SDF, but am wondering if there is any mechanism in place to keep them in check.

  • 1
    Nothing technical for the whole amount, but they have economic incentives not to do that, since they have stake in the system. And all employees / big XLM buyers have clause in their contract preventing them from selling everything immediately, it's locked up for few years. – umbrel Jan 18 '18 at 22:48
7

As a non-profit they are bound by law to have no part of the net income or assets benefit any member of the corporation or private person. I'm not sure how this exactly works with pay but I think their pay is regulated by the IRS.

Sources:

https://www.stellar.org/wp-content/uploads/2014/07/FILED-STELLAR-DEVELOPMENT-FOUNDATION-00594674.pdf

https://www.thebalance.com/can-nonprofits-pay-staff-2501893

  • I said the same thing when the topic came up on slack, but I was wondering if there was anything technically preventing them from doing something like this. For example, most XRP is locked up in an escrow account with built in expiry. – Ben Ayles Jan 18 '18 at 21:52
  • 1
    The technical fail-safe for this would be a fork of the blockchain. If the Stellar Development Foundation one day decided to be evil and pump an extra 1,000B into the market and cash out all the servers could decide that they no longer acknowledge those coins. Also note, the creation of new coins is not possible with the current protocol. – Jpunsal Jan 19 '18 at 1:46

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