The Ethereum Enterprise Alliance (EEA) has received the backing of Microsoft and Intel for its new system of reward tokens.
Announced at Ethereum community’s annual conference Devcon 5 on Tuesday, being held in Osaka, the reward tokens will be used to incentivize the companies participated in the consortium.
Just Announced: The Enterprise Ethereum Alliance Unveils Token-Enabled Blockchain in Action at #Devcon5. Learn more here: https://t.co/leAV0nGb5R pic.twitter.com/gpe9iqfplD
— EntEthAlliance (@EntEthAlliance) October 7, 2019
The EEA blockchain consortium includes over 250 enterprise members, including giants like Microsoft, JPMorgan Chase, Santander, Accenture, ING, Intel, and Cisco. The alliance is tasked with setting standards for Ethereum-based blockchain applications in business.
Steps to make the participants accountable
Speaking to Coindesk, Intel’s blockchain program manager Michael Reed explained that there would be three types of tokens to reward the participants - a reward token, a reputation token, and a penalty token.
“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,” Reed stated.
The concept of a penalty token is unique and will check the companies to make vague promises without putting any effort into delivering them.
Microsoft’s principle architecture Marley Gray detailed that the penalty tokens accumulated by the participants will be taken into consideration first before the redemption of any reward tokens.
“One of the problems you have is people making large commitments but never following through,” he told the publication. “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.”
