The Enterprise Ethereum Alliance (EEA), a Blockchain consortium that is responsible for setting standards for companies that build applications on the Ethereum, is launching a new system that would incentivize member companies. As per the announcement, the token reward system would be backed by software giants, Microsoft and Intel.
The announcement was made at Devcon 5, the annual conference of Ethereum developers, which was held in Osaka last Tuesday. According to the EEA, the new development aims to reward companies for their active participation in a Blockchain consortium. To date, the EEA has more than 450 member companies from a variety of industries, with Microsoft, Intel, JPMorgan Chase, Accenture, ING, Cisco, and Santander as some of the most prominent players.
Michael Reed, the program manager of Intel’s Blockchain, shared with Coindesk that the new reward system involves three different tokens –a reward token, a penalty token, and a reputation token. He added that other consortiums are free to follow the system as a way of encouraging and boosting teamwork.
The reward and reputation tokens, as explained by Reed, are designed to motivate member companies to develop applications, add codes, and to contribute to the growth of the network. Meanwhile, the penalty tokens would be given to members who engage in activities that can negatively impact the consortium and the network, such as lack of review, lack of contribution, and missing deadlines, among others.
The EEA, however, is not the first organization to launch a token reward system to enhance participation and contribution from member companies. Vienna, the capital city of Austria, was reportedly working on a Blockchain-based token that would be used to incentivize the participants of the local government’s programs. Notably, the citizens could earn rewards by merely riding their bicycles to reduce pollution and traffic. Other programs encourage them to provide feedback and comments about the city and its governance. The tokens could then be swapped for something valuable, such as movie tickets.