Tezos Foundation's assets soar to CHF 500 million

The shenanigans relating to the issuance of the Tezos crypto-currency case went on for some months after its Initial Coin Offering (ICO) in the summer of 2017, which raised $232 million, one of the highest amounts ever achieved in this way. At the time, the chairman of the Zug-based Tezos foundation was Johann Gevers, but a dispute arose between him and the Arthur and Kathleen Breitman, the married couple who set up Tezos, over what should be done with these funds, resulting in them being frozen for months. The dispute ended earlier this year with Gevers’ departure and the appointment of Ryan Jesperson as the new chairman of the foundation.
Last week, the American national, who previously worked in the health sector, spoke with a journalist of the Zug Zeitung.

When asked what the atmosphere was like at Tezos, he said, “It is great; there is real enthusiasm in the air. Over 30,000 people took part in the fundraising and the community is growing worldwide. The network was successfully launched in the summer and the technology is working, though naturally there are a few things which need improving and we are working on these.”

As to what had gone particularly well, Jesperson said that the basic idea behind the Tezos network, namely that many decentralised participants could bring the system forward, soon established itself, leading to the situation today where there were over 450 participants who validate the system, keep a share of Tezos and actively take part in the system, monitoring it continually. As to what needed to be improved, this related to software matters.
As to when the first concrete applications were to be available on the Tezos network, he said the company was currently concentrating on this, not that there were not already concrete projects under way and gave Moneytrack as an example. He explained how this start-up company was developing an application through the Tezos network to enable various businesses to harmonise their rebate and loyalty systems, and thereby avoid transaction costs. Then, in a different area, a micro insurance system was being worked out.

So why is Tezos so special? What is now possible which was not hitherto?
“We have been able to iron out problems which occurred in some blockchain technologies. For example, when Bitcoin first came out, it meant being able to exchange assets worldwide safely and at a relatively reasonable price, without intermediaries. Then, in a later stage, Ethereum was developed, which meant smart contacts were able to be used in addition to the aforementioned advantages, meaning codes imposing conditions could be implanted in the system, resulting in, for example, transactions not going ahead if certain conditions were not met. However, problems arise in this area, such as who administers something which is so decentralised. Who takes decisions? This inevitably leads to conflict and dispute, as those behind Bitcoin Cash know only too well. Such problems have been able to be avoided at Tezos as everyone who has a token has a say, depending on the amount held. For example, when it comes to updating the system, the token holders can vote on it, a three-quarters majority necessary for their decision to be enacted. Depending on the outcome of the vote, updates can be implemented automatically and worldwide. This is not the case with holders of Bitcoin or Ethereum tokens. We feel this democratisation of the network makes it safer. In other words, we feel Tezos represents the blockchain of the third generation, a blockchain which continually changes and improves itself.”

Having explained further advantages, Jesperson was asked about how safe Tezos were. He explained that, whereas Bitcoin and Ethereum worked according to a “proof of work” system, which had led to problems and was not sustainable, Tezos worked according to a “proof of stake” principal, with token owners monitoring and guaranteeing the security of the network. “In fact, if some of them broke the rules, some of their tokens could be removed from them, something which helps keeping them alert,” he said. He also pointed out that, one of the big four firms of accountants, PwC Switzerland, was acting as external auditor.

When asked about the current level of funds, Jesperson said, “We published our figures not long ago. As of October, the total amount raised now stands at $500 million. At least we have enough money for the future. At present we are working on how to diversify risk,” he replied, conceding, too, that some of the funds raised had been converted into conventional currency.

And do you pay taxes here in Zug?
“We do.”

Might Tezos move away from Zug?
“The foundation will remain in the canton, which is why I came here from the United States. What is more, next spring we are opening a big co-working space “Tezos Labs” in Crypto Valley.”

And how many people does Tezos actually employ?
“Just ten at the moment; we do not want any centralised inflated bureaucracy. What is important for us is that we remain flexible.”