MOU - Memorandum of Understanding
See MOU PDF in files
Memorandum of Understanding
Between OBADA LLC - The 501c(3) nonprofit.
and
OBADA Blockchain Service Inc. (OBS) - The implementation arm of the nonprofit.
and
OBADA Service Providers - Organizations providing network or ecosystem services.
Purpose of the MOU
The main purpose of the Memorandum of Understanding (MOU) is to document the licenses required between OBS and Service Providers.
This document also clarifies and provides details on items such as:
Financial details resulting from the legal structure set up between OBADA and OBS.
Proof of Concept (PoC) implementation details.
A variety of ways for Service Providers to "make money".
A clear implementation direction leading to OBS decentralization.
Nomenclature
OBADA LLC: the nonprofit responsible for stewardship of the OBADA standard and blockchain ecosystem.
OBADA Services Inc. (OBS): the implementation arm of OBADA, a joint-venture controlled by the nonprofit that is "building the blockchain". To comply with US law, OBS must support the mission of OBADA and can generate only “incidental profit” (20% is an acceptable goal).
Network Service Providers: Organizations licensed by OBS to maintain and run the network.
Ecosystem Service Providers: Organizations providing blockchain proofs or other blockchain services to users.
OBIT Passport: "The CarFax". A "device report" showing provable information about a specific device from origin to final disposition. In the future likely to become a legal tradable asset-backed token.
Proofs: Information or documents loaded to an OBIT will be cryptographically hashed and stored in the OBADA blockchain. This hash acts as the proof. OBADA proofs, with the exception of “Identity Management”, are machine generated
Network Fees: A fee on transactions to pay for the compute resources of the network. In Ethereum it's known as “gas”. OBADA charges a network fee for supplying proofs.
OBADA Proof Stamps
Proof Stamps is the name for the network fee. One Proof Stamp is required for each proof supplied. Proof Stamps will initially be sold by OBS in USD and cost $.05 each. They are used once then burned.
Proof Stamps are not a token. They are just centralized credits, like a membership rewards system.
In the future, a legal transferable utility token will replace the Proof Stamps.
Full Core: A name for the full collection of OBADA software containers (currently about ten Docker containers). It’s essentially all the software needed to run OBADA “in a box”.
Agreement / Licensing Timeline
Proof of Concept (2019-2020)
Two licenses are available during the PoC: The OBADA Full Core License and the Network Service Provider License. Both will be administered by OBS. OBS will attempt to outsource all services possible to ecosystem participants.
Participant Timeline:
Dec 2019: Charter Members - Group 1
Jan 2020: Charter Members - Group 2
Q2 2020: Other Pre-launch Members/Partners
Production (2021+)
Production 1: Proof Stamps are administered by OBS.
Production 2: Proof Stamps are minted by OBS then transferred to "Licensed Stamp Dealers" for resale.
Production 3: A decentralized utility token replaces the Proof Stamp. Prices are set by the market. Distribution likely follows the same model.
Production 4: OBS begins to decentralized using DAO techniques. The token enables network and ecosystem costs to be transferred directly between users and Service Providers with no direct OBS involvement.
OBS Licensing
To create proof, "licenses" or similar forms of "approval" are required for all aspects of the OBADA blockchain. OBS will provide these licenses and enforce them with cryptographic keys.
Rationale for Licensing
To maintain a trusted ecosystem, all users must be identifiable by a trusted entity ("Trust Anchor") known as a Registered Agent (RA). The RA provides the user with an "OBADA Authorization"; effectively a user license.
These trusted entities must be approved by OBS, and thus must have "Registered Agent" license.
Applications that write data must be non-fraudulent and the application owner/creator must be identifiable. Thus all blockchain applications must receive a license as "OBADA Compliant".
The network must be secure and reliable. Only technically competent organizations should be trusted for critical functions, and therefore must be licensed.
Post-launch, new members will pay a base fee for each license, which will be waived for Charter Members. This rewards the early participants who spend considerable resources developing the network.
License Costs
Charter Members: Free forever
Pre-launch Members: Permanent 50% discount
Post-launch Members: $0 to $10,000 per license ($50,000 for Full Core License)
Pre-Launch (PoC) Licenses
Only two licenses will be offered prior to production:
1. OBADA Full Core License
Only offered to Charter Members and Pre-Launch Partners.
A license to operate all software developed and deployed in the OBADA Full Core during Proof of Concept, in perpetuity after production launch. Supersedes the need for individual licensing.
Responsibilities: Must comply with OBS requirements.
Does not include future licenses not yet created. OBS Governance will decide on a case by case basis in the future whether future licenses should be offered free or with discounts to certain groups of members.
Pre-launch price: Free in perpetuity
Post-Launch Price: $50,000 USD
2. OBADA Network Maintainer License
A maintenance contract required by technical organizations who wish to offer “OBADA Compliant Nodes” as hosted a service to OBADA Stakeholders.
Licensee must be a competent technical organizations with capabilities for maintaining a network of “OBADA Full Core” installations. Will require standards to be established.
Purpose:
Deployment, configuration, updates, and maintenance of nodes.
Does not include any OBADA software development or “features”. Purely management of “the box”.
To limit centralization, customer (Node Host) must maintain legal ownership of the OBADA Full Core.
Maintenance Contract Purchasing
During PoC:
Customer (Node Host) pays OBS $1000 (20% margin).
OBS pays Licensee $800 fr providing the service.
During Production (Decentralized):
Service Providers set their own price and collect their own funds.
Service Providers pay OBS a license fee (TBD) via cash or system credits (TBD).
Post Launch Licenses (FUTURE)
There will be at least three groups of production licenses: "user licenses" for identifying users, organizations and permissions (see above), "network services licenses" for running the network, and "proof service licenses" for organizations and applications to provide value to users.
Licensing for providing "Network Services"
1. OBADA Node Validator License
A license to run a “read-only” version of the OBADA Full Core (or at a minimum the DLT related components of the core which maintain full consensus), for use within one organization.
Licensee is NOT authorized to resell data or to provide blockchain access to outside organizations.
Purpose: Provides blockchain consensus and maximizes decentralization
Cost: TBD
2. OBADA Data Administration License
Allows licensee to resell access to OBADA data and/or analysis.
Purpose: Provides a user gateway to the blockchain. Licensee can resell raw data or analysis or management tools.
Cost: TBD
3. “Secure Data Hub Provider” License
Provides “OBADA Complaint Data Storage” off-chain with appropriate security and permissioning. In effect, a virtual “zip file” holding all (or some) data referenced by the OBIT.
Purpose: Provide distribution of data as a stepping stone, until full decentralization becomes feasible.
Requirements: Licensee must be a competent technical organizations with capabilities for maintaining a network of “OBADA Full Core” installations. Will require some standards to be set.
Licensee Costs & Revenue: TBD
Timeline: A future PoC
4. ”Proof Stamp Dealer" License
Licensee is authorized to mint and sell systems credits, known as “Stamps”, under predetermined amounts, prices, and rules.
Pricing:
During PoC: Free - will be implemented in a future PoC.
During Centralized Production: Offered at a predetermined price set by OBS Governance. Likely to be $.05
During Decentralized Production: Market pricing.
Stamp Proceeds
Licensee will retain a percentage determined by OBS Governance.
OBS will retain 20% margin for operations.
Full Core Licensees will receive a redistributed portion as “Network Fees”.
A portion will be used to implement network incentives in support of sustainability and ecosystem initiatives as decided by OBADA Governance.
Licenses for “Proof Services"
Price Structure for all Proof Licenses
Pre-launch: included in Full Core License
Post-launch Centralized: To avoid price manipulation and confusion during ecosystem development, OBS will set resale prices, for license costs which are able to be passed on to users.
Post-launch Decentralized: Resale price to end users will be determined by service provider. Cost for future utility tokens will be market price, with appropriate controls set by governance.
1. Proof of Identity (PoI) License - defines the "Registered Agent"
Offered to: Registered Agents (RAs) which are "known industry membership organizations."
Purpose: Registered Agents function as the “Trust Anchors” of the system, verifying the identity and approving access for all users. The PoI License allows RAs to offer anonymized “OBADA User IDs” to their constituents.
Requires: organization to do a physical check of identity documents, to maintain current contact information, and to comply with authority requests (TBD).
Network Fee: 1 OBADA Proof Stamp.
2. Proof of Ownership (PoO) License - defines the “OBIT Passport Issuer"
Offered to: Applications providing inventory management, ERP, and similar functions which serialize (e.g. "barcode") devices who control the "entry point" for devices into OBADA.
Purpose: Licensee is able to create OBIT Passports ("Digital Assets”) which represent a real-world physical asset.
Requirements: Some form of "Proof of Ownership" will need to be provided, possibly purchasing documents.
Network Fee: 1 OBADA Proof Stamp per OBIT Passport.
3. Proof of Data Destruction (PoDD) License
Offered for: Applications providing digital or physical data destruction
Purpose: Provides a ZKP (zero knowledge) proof as well as a certificate of data destruction.
Requires: Compliant software
Network Fee: 1 OBADA Proof Stamp.
4. Proof of Functionality (PoF) License
Offered for: Applications that run diagnostic providing reports on device components and functionality.
Purpose: Provides a ZKP of device functionality, useful for evaluation, repair, and trading services. Allows components to be identified, authenticated and in the future to be established as separate (possibly linked) blockchain entities.
Requires; Compliant software
Network Fee: 1 OBADA Proof Stamp.
5. Proof of Recycling (PoR) License
Offered to: Recyclers (Processors) who a contractually obligated to responsibly recycle devices to recover raw materials in a manner consistent with the established rules of a trusted industry organization (SERI, e-Stewards, etc)
Purpose: Provide a ZKP of responsible recycling.
Requires: Recycling compliance, auditing capabilities (TBD)
Network Fee: 1 OBADA Proof Stamp.
Future Proof Licenses
Concept only, not an inclusive list. Any future service that records an event, specifically with a proof, will require some form of license to enable compliance and interoperability, and the financial stability of the network.
Proof of Logistics - from BiTA or other outside blockchain.
Proof of Data Addition - from service providing data enhancement.
Proof of Possession - from logistics / maintenance / repair services.
Proof of Resale - from resellers.
Proof of Authenticity - likely from outside (manufacturer) blockchains.
Proof of Trade (buy_sell) - from buy_sell trading services.
Proof of Donation - from nonprofit computer donators.
Proof of Compliance (various) - from environmental & other organizations.
CLOSING STATEMENT
THIS DOCUMENT IS A NON-BINDING EXPRESSION OF INTENT BY THE UNDERSIGNED PARTIES. FINAL LICENSING AGREEMENTS WILL BE DRAFTED AT A LATER DATE; ONCE EXECUTED, THOSE LICENSING AGREEMENT WILL BE BINDING.
MOU Signatures
Sign Here
Service Provider: ________________________________________________________________
Name & Title: ____________________________________________________________________
Signature: _____________________________________________ Date: ___________________
OBADA Services Inc.
Name & Title: ____________________________________________________________________
Signature: ________________________________________________ Date: ________________
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