ETC Cooperative
July 2020 Board Package
August 31, 2020
Sections
1 Overview
2 Protocol
3 Infrastructure
4 Comms & Marketing
5 Grants
6 Finance
Overview
ETC experienced a 51% attack on 31 July with double spend and network split.
OpenEthereum and MultiGeth ended support for ETC.
- Conversation with Rootstock on Merge Mining.
- Provided draft for EEA Roadmap for the testing working group.
- Call with Hyperledger on updates to ETC Cooperative.
- Preliminary call about designing the grant process.
Protocol – 51% attack
ETC experienced a 51% attack on 31 July with double spends and a network split.
Here is our blog post about this first attack.
There was a deep reorganization which had the secondary effect of splitting the network in two, because OpenEthereum could not deal with so deep a reorg.
Core-Geth, Multi-Geth and Hyperledger HL could cope and continued together.
It had already been announced that OpenEthereum were dropping ETC support, but this issue meant that node operators using OpenEthereum were forced into emergency migration to Hyperledger Besu or Core-Geth. This was especially disruptive because OpenEthereum had been the majority client used to that point, including for many mining pools.
Sadly this proved just to be the first of a series of attacks, which will be covered in the August report.
Protocol-Other
Add new patch fixes to the Connext ETC endpoint.
Establish communication with Google Cloud on resolving outstanding issues with Besu deployment on Kubernetes.
Establish initial communication with Microsoft Partner Center on adding cloud tooling.
Both OpenEthereum and Multi-Geth dropped support for ETC during July, as they had previously announced following the Phoenix HF.
See https://etcnodes.org/ for current "market share". Core-Geth is dominating now with over 60% of the active nodes. Besu adoption is slowly starting to pick up.
Infrastructure
Updated Blockscout with latest version and provide Besu support.
After working with Connext throughout Q2 and hitting many channel finally went live in July, with.
Comms and Marketing
Connext ETC State Channels Content Release Plan found here.
Kevin has also been drafting several blog posts for the Co-op. One being "How to Migrate to Besu," and the other showing how Besu supports Keccak256 (still being drafted).
Grants
Just as we were looking to restart our grants program, the 51% attacks began which has forced a switch of focus.
Finance
Expenditures in $US
| July 2020 Actual | July 2020 Budget | Variance $ July 2020 vs July 2020 Budget | July 2019 Actual | Variance $ June 2020 vs June 2019 | |
|---|---|---|---|---|---|
| Overhead & Management | $17,115 | $20,854 | $(3,739) | $17,467 | $(352) |
| Development | $10,000 | $10,000 | $0 | $10,000 | $0 |
| Protocol | $0 | $0 | $0 | $0 | $0 |
| Comms&Marketing | $2,153 | $2,723 | $(570) | $150 | $2,003 |
| Finance | $11,320 | $5,325 | $5,995 | $1,307 | $10,013 |
| Infrastructure | $3,282 | $2,750 | $532 | $11,142 | $(7,860) |
| Partnerships | $0 | $0 | $0 | $250 | $(250) |
| ETC Summit | $0 | $0 | $0 | $0 | $0 |
| Total Expenditures | $43,871 | $41,652 | $2,219 | $40,317 | $3,554 |
| Non-cash Items | $0 | $0 | $0 | $0 | $0 |
| Total Operating Expenses | $43,871 | $41,652 | $2,219 | $40,317 | $3,554 |
Finance
Expenditures in $US
| July YTD 2020 Actual | July YTD 2020 Budget | Variance $ July YTD 2020 vs July 2020 Budget | July YTD 2019 Actual | Variance $ July 2020 vs July 2019 | |
|---|---|---|---|---|---|
| Overhead & Management | $123,119 | $146,729 | $(23,610) | $130,281 | $(7,162) |
| Development | $72,249 | $70,000 | $2,249 | $66,592 | $5,657 |
| Protocol | $38,850 | $61,600 | $(22,750) | $62,500 | $(23,650) |
| Comms&Marketing | $23,869 | $45,265 | $(21,396) | $19,703 | $4,166 |
| Finance | $27,455 | $44,775 | $(17,320) | $10,832 | $16,623 |
| Infrastructure | $29,994 | $33,330 | $(3,336) | $0 | $29,994 |
| Partnerships | $5,542 | $0 | $5,542 | $0 | $5,542 |
| TC Summit | $1,978 | $0 | $1,978 | $39,028 | $(37,050) |
| Total Expenditures | $323,056 | $401,699 | $(78,644) | $328,936 | $(5,880) |
| Non-cash Items | $23,686 | $0 | $23,686 | $0 | $23,686 |
| Total Operating Expenses | $346,741 | $401,699 | $(54,958) | $328,936 | $17,805 |
Finance
Net (Loss)/Income in $US
| Net (Loss)/Income in $US | |||
|---|---|---|---|
| July 2020 Actual | July 2020 Budget | July 2019 Actual | |
| Income | $60,509 | $44,160 | $58,078 |
| Operating Expenses | $43,871 | $41,652 | $40,317 |
| Net (Loss)/Income | $16,639 | $2,508 | $17,762 |
| Non-cash items | $0 | $0 | $0 |
| Adjusted Net Income | $16,639 | $2,508 | $17,762 |
Operating Expenses $43,871
Net (Loss)/Income $16,639
Financial Positions in $US
| Financial Positions in $US | ||||||
|---|---|---|---|---|---|---|
| 31-Jul-20 | 30-Jun-20 | 31-Mar-20 | 31-Dec-19 | 31-Dec-18 | 31-Dec-17 | |
| Assets | ||||||
| Cash & Cash Equivalents | $246,958 | $233,278 | $195,538 | $146,318 | $530,268 | $0 |
| ETC(at book value) | $78,115 | $78,115 | $78,115 | $154,363 | $154,363 | $0 |
| Accounts Receivable | $5,000 | $5,000 | $12,057 | $12,057 | $7,057 | $0 |
| Due from Grayscale | $49,280 | $46,849 | $34,890 | $18,808 | $(6,729) | $371,505 |
| Prepaid Expenses & Deposits | $750 | $750 | $1,500 | $2,250 | $0 | $0 |
| Total Assets | $380,103 | $363,992 | $322,100 | $333,796 | $684,960 | $371,505 |
| Liabilities | ||||||
| Accounts Payable & Accrued Liabilities | $32,442 | $34,888 | $26,905 | $44,393 | $20,305 | $0 |
| Due to Grayscale | $0 | $0 | $0 | $(1,000) | $3,022 | $131,864 |
| Total Liabilities | $32,442 | $34,888 | $26,905 | $43,393 | $23,328 | $131,864 |
| Equity | ||||||
| Retained Earnings | $290,403 | $290,403 | $290,403 | $661,632 | $239,640 | $0 |
| Net Income/(Loss) for the year | $57,258 | $38,701 | $4,792 | $(371,229) | $421,992 | $239,640 |
| Total Equity | $347,661 | $329,104 | $295,195 | $290,403 | $661,632 | $239,640 |
| Total Liabilities & Equity | $380,103 | $363,992 | $322,100 | $333,796 | $684,960 | $371,505 |
| ETC at Market Value | $60,019 | $46,812 | $40,386 | $72,540 | $81,430 | $0 |
| Liquid assets | $306,976 | $280,090 | $235,924 | $218,858 | $611,698 | $0 |