Article VII - v0.3.0 Draft EOS.IO Constitution - Agreement to Penalties

Purpose

Laws and agreements must be enforced and enforceable. This article states that the Member agrees to face penalties if found to have violated the rules. This prevents someone from escaping responsibility via a claim that they didn't agree to follow the rules or shoulder the consequences of a violation. It also normalizes the community around what penalties we may assess on one another via our systems of collective action.

Text of Article

Each Member agrees that penalties for violations may include, but are not limited to, fines, account freezing, and reversal of transactions.

Discussion

This clause is a simple one. It states explicitly what was made implicit in earlier articles of this same Constitution, i.e. that the rules can be enforced and that a Member faces -- and agrees to face -- punishment for breaking the group's rules. The method of punishment is set out by the Arbitrator in their particular case at hand.

There should probably be a community document in which "standard" penalties are set forth for typical transgressions. That document should not be part of the Constitution, and will likely evolve as the community does.

References

None yet.

If this was helpful, please UPVOTE. If not, please REPLY so I can improve.

Thomas Cox
blockchain governance expert - active in the EOSIO ecosystem
US: +1 503.516.3886

(all opinions are my own)

Comments

  • KevKev Posts: 382 admin
    edited April 26

    I'm usually a fan of upvoting everything on this forum but can't bring myself to click the up button on penalties.

    Let's all do the right thing and avoid this article altogether, sound good? That should work, right?

    On a more serious note, the community 'standard penalties' document could be written by a corp of arbitrators, possibly after we've seen a few cases. What's the point in trying to predict anything before then? Can't read the mind of a guy robbing a gas station at 2am, and we all look forward to the stupid criminal cases we'll see as bad actors learn it's much harder to get away with things on EOS compared to a legacy blockchain.

  • EOSREALGraceEOSREALGrace Posts: 15 Jr. Member - 1/5 EOS Tokens

    Dear Mr. Cox,

    Recently I spent quite a time talking EOS constitution and arbitration plan with a senior arbitrator in Australia, and like to invite him consulting us on related topics. But sadly he found the legal system is way behind blockchain technology development and below is his reply:

    _**I have had a look at EOS discussion, and can confirm that I am incapable of acting as an “arbitrator” in these circumstances. It is not so much about my shortage of interest. It is about, quite honestly, the unfortunate reality that the current international commercial arbitration system is NOT ready for cutting-edge technology such as the one you are referring to.

    As someone who handles nothing else but international arbitration cases day in and day out, I can let you know that not any established arbitrators are familiar with the practice of blockchain projects. Those are people aged 70 or above and many of them even do not have the skills of doing emails. The UNCITRAL Model Law on International Commercial Arbitration and the New York Convention 1958, well-known mainstays of today’s global arbitration system, have simply not envisaged something called blockchain. We, as arbitration practitioners, are usually conservative people who are not familiar with running blockchain-related cases. I mean it because even very established arbitral seats like London, Paris or New York there are not a lot of people who have reported experience of running cases as such. International arbitration circle is a small one and we usually know who is doing what.

    I’m sorry for being unable to help you on this at this stage. As I said, the situation here is not so much about my own ability (or inability) while a lot of others around the world are able. The issue you raised here is a most challenging one for the entire global arbitration community. We are not ready yet and it takes long period of time for us and the international arbitral system we make a living in get ready for it. I acknowledge that your project is a cutting-edge one so I do not want you to run the incredible risk of incorporating untested and unforeseen arbitration regime into your project’s dispute resolution doctrine.**_

  • EOSREALGraceEOSREALGrace Posts: 15 Jr. Member - 1/5 EOS Tokens

    Clearly we are working on a revolutionary project, and hope we unite together and make this happen

  • MortenMorten Posts: 27 Jr. Member - 1/5 EOS Tokens

    Great work. We can consider adding a sentence like: "Penalties must be proportional to the violation of the user."

    This can serve as a constitutional safeguard for the users assuring fair penalties.
    Proportionality should also serve as leading principle in creating the community document with standard penalties.

  • Sam_SapoznickSam_Sapoznick Posts: 68 Member - 2/5 EOS Tokens

    @EOSREALGrace said:
    Dear Mr. Cox,

    Recently I spent quite a time talking EOS constitution and arbitration plan with a senior arbitrator in Australia, and like to invite him consulting us on related topics. But sadly he found the legal system is way behind blockchain technology development and below is his reply:

    _**I have had a look at EOS discussion, and can confirm that I am incapable of acting as an “arbitrator” in these circumstances. It is not so much about my shortage of interest. It is about, quite honestly, the unfortunate reality that the current international commercial arbitration system is NOT ready for cutting-edge technology such as the one you are referring to.

    Thanks for sharing your outside, experienced perspective on arbitration and its relation to the planned EOSIO public blockchain. It gives me continuing incentive to assist the EOSIO project & community in forging onwards into unexplored territory. I am certain that formal arbitration has a future on the blockchain.

  • ThurgoodMarshallFanThurgoodMarshallFan Posts: 20 Jr. Member - 1/5 EOS Tokens

    A negative rights document should not spell this out. Any remedies except those specifically limited by the constitution should be available, as determined by the arbitrator in each case.

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