Inherit, back up and recover your digital assets. Download the Vault12 app today.

Transaction Split Proposal Approved by Blockchain Community Vote
Vault12 Blog

Transaction Split Proposal Approved by Blockchain Community Vote

As announced in May 2019, the Vault12 team put proposed changes to the functionality of the Vault token economy to the vote. All Vault Guardian Token (VGT) holders with unlocked tokens were eligible to vote via a blockchain vote conducted on the ETH mainnet.


The "Transaction Split" proposal has been approved overwhelmingly as the new policy of Vault platform.

Transaction Split proposal adopted by the community.

Results

With a total of 66,241,593 votes cast, more than 96% went to the transaction split proposal.

Voting breakdown


No Change 1.84% (1,221,576 Votes)
Dual Token 1.27% (841,974 Votes)
Transaction Split 96.89% (64,178,043 Votes)
Total Votes Cast: 66,241,593

As a hallmark of blockchain voting, the voting can be inspected on the blockchain: https://etherscan.io/address/0x908d81a4961c4a40b38c91f16d216c6307a89954#events.

What is the Transaction Split Proposal?

Key Goal: Optimize for ease of use and reach for app customers

Providing app customers with VGT tokens will be heavily restrictive as long as tokens remain categorized as a security. The task of categorizing VGT as a utility might take years and may depend on regulations that are not yet issued.

Instead, we can make the platform accept the widely available Ethereum (and other cryptocurrencies at a later date) and keep the original VGT token as a registration of commercial rights on the platform. This way millions of Ethereum users can immediately use the Vault platform with no extra steps such as buying tokens on exchanges. At the same time, VGT tokens become valuable since ownership entitles holders to automatically receive a piece of each transaction that takes place on the platform.

As you might recall from our white paper, the Vault platform will be powered by the three following transaction groups:

We propose a flat, 20% transaction split to be implemented by all elements of our platform stack.

Here are the main consequences of this policy:

  • Any Ethereum owner will be able to use the Vault12 application immediately.
  • Ownership of VGT tokens will become an instrument to receive a steady flow of Ethereum proportional to transaction volume taking place on the platform. At a later date, any ETH-convertible cryptocurrency will be acceptable as platform payment and will accrue to VGT owners with the same 20% split.
  • Currently, external investors and advisors control ~82% of all unlocked VGT tokens and therefore will receive ~82% of ETH received in transaction splits. (See token distribution report).
  • VGT tokens will remain a security, but owning VGT token will no longer be a requirement to use the Vault Platform and end-user products.
  • VGT tokens will be tradable only on security exchanges. US residents who wish to buy VGT tokens will have to remain compliant with KYC/accreditation regulations.

As token scarcity becomes a desirable property of the platform. Vault12 will provision a buy & burn smart contract that will spend 10% of the previous month's fees to purchase and permanently burn VGT tokens until the total number of provisioned VGT tokens falls to 100,000,000 (one hundred million) tokens. All monthly burns will be inspectable on the mainnet.

More details on each proposal can be found here.

Voting Mechanism Used

  • Each unlocked owner of VGT can participate in the vote on the Ethereum mainnet. One token grants one vote.
  • There will be at most ~267.2M tokens eligible to vote. The exact number will change during the year as investors and advisors tokens come out of smart contract lockup.
  • The vote will be binding if 100M or more tokens participate in the vote.
  • If less than 100M tokens will participate in the vote, Vault12 will adopt the "Transaction Split" proposal as the default outcome based on team & advisory board recommendation.
  • If 100M or more tokens participate in the vote, Vault12 will adopt the vote resolution that gains the majority of votes cast as long as such majority is more than 10% higher than the 2nd place proposal.
  • If the first and second place proposals are within 10% of each other, Vault12 will organize a second round of voting and winners will be determined by a simple majority of votes cast.

Example #1: Proposals A/B/C gain 10%/20%/70% of the vote. Proposal C will be adopted.

Example #2: Proposals if A/B/C gain 20%/35%/45% of the vote. B and C are within 10% of each other, Vault12 will organize second runoff round between B and C, and the simple majority winner will be the adopted policy.

Recover, Back Up, and Inherit Digital Assets

(including Cryptocurrency Seeds, NFTs and Art)

Every digital asset you own should be backed up, protected and remain accessible. Cryptocurrency in particular is difficult to secure. With natural disasters, hackers, to badly implemented security, you are always at the mercy of others.

Vault12 Personal Digital Asset Security helps you recover, backup and provide legacy inheritance for all your digital assets, including Bitcoin, Ethereum, NFTs, other cryptocurrencies, private keys, seed phrases, digital art and of course, your crypto wallets.


Learn More


Download Vault12 today – Try the free plan:

Recover, Back Up, and Inherit Digital Assets

Introducing Digital Inheritance

Pass on your Digital Assets to future generations

Vault12 Digital Inheritance is the first solution to offer a simple, direct, and secure way to ensure digital assets can be accessed by future generations. Digital Inheritance enables investors to designate an individual who will inherit their entire portfolio of digital assets stored in a secure Vault once the time comes, eliminating undue risk and the need to continually update an inventory or continually issue updated instructions.


Learn More


Personal Security for your Cryptocurrency and Digital Assets

Designed to be used alongside traditional hardware, software and online wallets, Vault12 helps cryptocurrency owners, ICO investors, professional cryptocurrency traders, and high net worth investors safeguard their digital assets without storing anything in the cloud or in fact any one single location. This increases the protection and decreases the risks of loss.


Learn More


Personal Security for your Cryptocurrency and Digital Assets

Easy to setup, easy to secure, easy to access.

A digital Vault containing your digital assets is assigned to trusted people or devices, known as Guardians. Your Guardians can be adjusted as needed in real-time so that the appropriate number are always guarding your digital assets. No one can access your assets and only you get access when you need.


Learn More


The Winklevosses came up with an elaborate system to store and secure their private keys. They cut up printouts of their private keys into pieces and then distributed them in envelopes to safe deposit boxes around the country, so if one envelope were stolen the thief would not have the entire key.

Nathaniel Popper, New York Times, December 19, 2017

20% of all Bitcoin is lost forever. That's $20B, in fact, in 2018 alone, $1.1B has been stolen.

Elliott Krause, The Wall Street Journal, July 5, 2018

The idea behind Vault12 is how do we essentially split that responsibility, make that problem of key control less a technological one by essentially making it into a social one with networks of people that they trust.

Terence Spies, former CTO, HP Enterprise, Data Security

Exchanges are the main target for hackers. Those are the biggest honeypots. So the number one rule in Crypto is, do not keep your money on an exchange, and if you're going to custody that money, you need to do it off of the exchange with a product like Vault12.

Joe DiPasquale, BitBull Capital

Security and usability are inextricably linked, the former cannot exist without the latter. Vault12 understands the need for end-to-end management of this experience as well as the importance of integrating into the prevailing crypto ecosystem

Sathvik Krishnamurthy, Founder and Managing Partner, Security Leadership Capital

As we move to a more open financial system driven by advanced blockchain technology and cryptocurrency, we need smarter ways to ensure that the system is trustworthy. Vault12 does this by addressing a foundational need -- ensuring that your crypto assets are not only protected by decentralized security, but also by your trusted inner circle. Your private key never exists in one place or with one entity, reducing risks from hackers as well as everyday accidents.

Vinny Lingham, Entrepreneur and Advisor

Security is the lifeblood of industry, commerce, and leisure. As more people use decentralized applications, they will need a way to back up their crypto wallets and exchange accounts. Vault12 provides a simple and natural way to reduce risks and combat the fear of forgetting seed phrases and private keys.

Jon Callaghan, co-founder of True Ventures

Get started now.

The Vault12 app is now available from iOS and Android app stores.