USA Nodes and the xx network BetaNet

Changes to compensation of US nodes in the BetaNet

Posted by: xx Team
Posted on: May 15, 2020

Earlier today, we notified all U.S. node operators that we will be unable to allow them to be compensated for participation in xx network’s BetaNet. We are deeply saddened to have to make this decision, and we wanted to provide some context as to how we got to this decision.

We opened the BetaNet process with the goal of pan-national participation, as we believe this should be a core pillar of transnational and decentralized networks. At the same time, like with everything we do leading up to the launch of the xx network, we built our procedures for launching the BetaNet on the advice of counsel, and we try to be conserviative with our approach in order to maximize the chance of success for the network once it is in the hands of the community. While we believe this work with our legal team and other advisors has created a path that may allow US participants to join alongside their international peers in participating in the BetaNet, the recent Telegram actions also emphasizes that risk may remain even for projects that initially comply with applicable U.S. laws. 

After some discussion, we came to the decision that, while we think there is strong support that our current plans comply with U.S. law, it would be unfair to the rest of the network and community to potentially jeopardize the future status of the network by taking on the risk of noncompliance prematurely while U.S. law remains in a state of flux. As such, we have decided that BetaNet nodes operated by U.S. persons will not be eligible to receive any xx coins as an incentive for participating in the BetaNet.

We understand that without being eligible for the incentive program, participation within the BetaNet may be untenable or undesirable for potential U.S. node operators. We also recognize that some potential U.S. node operators may have already procured equipment to participate in the BetaNet, and we are greatly appreciative and humbled at those who were excited enough to participate that they have already gone to such lengths. To that end, we have reached out to potential US node operators that may have already incurred expense in anticipation of participating in the BetaNet with the goal of ensuring that none of our US community members are left shouldering the burden alone, and if you are a US applicant that may have incurred some costs before the date of this blog post and have not already heard from our team, please reach out to us via telegram or email.

In accordance with our commitment to privacy, we will be automatically deleting any personal information we have pertaining to US BetaNet applicants within 45 days, unless they inform us they would like to continue participation on a modified basis that does not involve incentives in the form of xx coins. 

If you are a potential BetaNet participant in the U.S., please do not submit to us additional information or applications at this time. We will have further announcements about other ways to stay involved in the near future. 

As the regulatory picture evolves, we will strive to keep our US community members up to date and hope to include our US community members in future events to the extent possible. For legal questions, comments, or concerns, please email [email protected] and for general information please email [email protected]

xx network does not distribute, offer, solicit sales of, or sell any xx coins in any state or jurisdiction in which such a distribution, offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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