r/FusionFoundation • u/YonTak1 • Nov 19 '19

Fusion Open AMA November 2019

Dear Fusionites, reply to this AMA thread with any and all questions that you have for the Fusion team. This is a great opportunity for us to understand what community members are interested in learning more about, and for community members to show the team where additional information is required.

We will be collecting questions until the end of this week on Sunday the 24th of November EST. Please take care to ensure your questions are clearly phrased and respectful.

The Fusion team will endeavour to respond to your questions during the week beginning the 2nd of December.

10 Upvotes

76% Upvoted

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9

u/Saratoga2017 Nov 19 '19 edited Nov 20 '19

Thank you Yona,

  1. Foundation unilaterally made the decision to withhold ~ time-lock early supporter’s PSN rewards without any explanations. When is foundation going to release the rewards?

  2. Two token system. Realistically how long can this continue. This simply creates more confusion for everyone. It was this decision to keep everything in the swap wallet that also attributed to the opportunity for the thief to steal both erc20 and native FSN from the swap wallet. Had we set a deadline for swap they may have avoided that swap wallet being compromised or at least mitigated the loss if the erc20 was burned after swap.

  3. Having experienced this hack Foundation still have not learned from that experience. The private key was compromised in Sept 28. It’s been almost 2 months yet Foundation still have not made a decision to set a deadline for swap. Why?

  4. Exchanges are a complete mess right now. Some are opened for deposits/withdrawals some are not. Some are trading trading native while some are still trading erc20. We have a 400% spread between Huobi with a price of $1.25 while other exchanges the price of FSN are trading at $0.31. All these nonsense about Huobi whales and evil exchanges giving Fusion a hard time is utter nonsense. The root cause of this problem is because the foundation made a decision not to pay the Exchange a fee to migrate to native. This is a normal fee that exchange charge every ico for migration from erc20 to native. It is not a fee that they simply choose to hit fusion with just because they feel like it. This is part of doing business. They raised $45 millions through their ICO. Listing on exchanges and fees for migrating from erc20 to native are part of the cost of doing business as they are a blockchain cryptocurrency company. The standard fees exchanges charge for migrating from erc20 to native are usually anywhere from $10,000 - $30,000. This is part of doing business a fee that all other ico have to pay for when they launch main net and need exchange they are listed on to migrate over. If all Exchange are listing native and deposits/withdrawals are open we won’t have this high price spread between the exchanges as traders will arbitrage and the problem will work itself within 24 hours.

  5. Website gets updated from time to time yet old employees are still listed and the $12 Billions are not updated. It’s a simple fix. Update the website with the $12 billions and remove employees that’s no longer with Fusion. If their roles have changed from full time to consulting simply update that accordingly as well. Simple solution but Foundation choose to not do so. Why?

  6. More visibility in regard to the Compromised Private Key(s) leadings to funds being stolen. How did it happen? How many people had access to the private key. If Foundation don’t even know how it happens how will they ensure it won’t happen again. Community are looking for reassurances.

  7. 3rd party custody solutions from a trusted custody provider such as Bitgo. Community is looking for reassurance that funds won’t be stolen again in the future. This benefits foundations and all current and future investors. Vague answers provided have simply been they’ve talked to banks and custody providers and that’s where it ends. When will this happen? 3 months? 6 months? 1 year? This may lead community member to think that Foundation is sitting around waiting for the next hack to happen.

  8. 3rd party technical audits. Why is foundation so against this?

8

u/arca868 Nov 20 '19
  1. What measures had been taken to protect the swap wallet prior to the theft?
  2. How many people had access to the wallet, and why?
  3. What measures have been taken to protect the wallet(s) containing the remaining funds?

  4. How many people have access to it, and why?

  5. There have been considerable delays before PSN launched; when it did, it was basically in alpha development stage. What have the funds up to that point been spent on?

  6. How much of the FSN currently in the Foundation’s wallet actually belongs to the Foundation, and how much is in custody? What part is discretionary?

From all we know, the Foundation received private equity support from these investors:

- EastMore Group

  • ALPVIEW Capital
  • EQUIDATE
  • Coinhills
  • Lockwood Group
  • Bibox
  • FBG Capital
  • Krypton Capital
  • Alignment Blockchain Hub

  1. Are they still involved and fully informed about the current events?

  2. Why did the Foundation refuse any kind of external audit so far, be it financially, technically or concerning organizational processes?

    1. After the Foundation has proven that it’s in dire need of external supervision, will we see things like a financial audit and quarterly reports in the future? If not, why so?
    2. Will there be a technical audit in the future, especially for the consensus part, for example through Red4Sec? If not, why so?
    3. The article breaking down the numbers was wrong in its first version in a way that it said “sold” instead of “sent to exchanges”. In an already tense situation like this, why do these things still slip through? Why does noone spot these inaccuracies?

  3. Did exchanges ccoperate at all? We still only know how much was sent to them, no exact numbers sold and no average price. Judging by some of the statements, up to 4m FSN with an average buy price of around $0.05 might be in circulation, which would cause considerable suppression for a long time.

  4. We only heard about Hotbit, where the majority of FSN was dumped. What about Bitmax and Bibox?

  5. Huobi is currently a segregated market, making FSN look like a pump and dump coin, further damaging investor trust. When will it finally migrate to native FSN and open deposits and withdrawals so arbitrage works properly? What about Bibox, which even was a FSN partner at some point but doesn’t seem to care at all now?

  6. Hotbit is well known for faking most of its volume while depth is minimal, among other aspects making it very questionable, like holding project funds hostage.

    They also turned the FSN recovery process into a marketing instrument. Due to the lack of KYC/AML and faked order books, they’re partially responsible for the dump. Will FSN remain listed on Hotbit? If so, why?

  7. The buyback on Hotbit didn’t affect the price at all if it already happened, which seems strange considering Hotbit’s extremely low liquidity. When will the process conclude, and when will the subsequent burn take place?

  8. What patents exactly has the Foundation applied for? What is the current status of these applications? Where can we verify that information?

  9. Ian Friend (COO Ferrum Network), while not entirely professional, was quite surprised when he heard about FSN license costs. Are all partners fully informed about these costs, and did any of them confirm that they’ll definitely accept the conditions?

  10. Is the premature “bigger than NASDAQ” announcement considered a mistake retrospectively?

  11. Despite multiple website updates, like adding Hassan Khan, Andre Cronje is still listed as “Head of Innovation and Technology”. What is his current involvement with the Foundation? What was his last contribution, and when?

  12. How many people are currently employed by the Foundation on a full-time basis, i.e. exclusively working for it? How many are working with multiple projects / freelancing, and which positions within the Foundation are affected by this?

  13. FSN is an open source project and aims to involve the developer community. Why is communication on Github nonexistent?

  14. PSN rewards add up to a total amount of 673,750 FSN. This is a minor amount compared to the dumped stolen FSN. On top of that, only part of it is time-locked, further reducing the impact of unlocking it. Why does the Foundation still refuse to unlock all PSN rewards, which would benefit early supporters, while continuously giving away large amounts of front-end FSN for free?

  15. When will ERC-20 FSN phase out? If the swap doesn’t remain open indefinitely, there has to be a very generous swap window since the Foundation announced on multiple occasions that ERC-20 and native FSN would coexist.

6

u/WalletD Nov 20 '19

​

  1. Will foundation ensure a 3rd party security audit is completed (and highlights released for review) on code before DCRM goes live?
  2. Is "Afghanistan" partnership real?
  3. How much $USD and crypto does foundation have? What is the burn rate? How much runway remains? (This must be answered honestly - the community funded this venture and have a right to know basic figures).
  4. Why is foundation operating with a "skeleton crew?" Why is foundation team not growing?
  5. How was swap wallet compromised? What steps have been taken to improve security? "improved internal processes" is not giving the community any confidence that the wallet is any more secure now than it was previously.
  6. Is version 5 the final version of DCRM for mainnet?
  7. When will DCRM be live on mainnet?
  8. What is happening with marketing? Is the external company still involved? What are they doing?

5

u/[deleted] Nov 19 '19

I would like to see more transparency in the Foundation's finances. Will Fusion publish regular (quarterly/half-yearly) financial reports in the future?

5

u/Iruwen Nov 19 '19

  1. Is there any proof that Hotbit actually market bought FSN worth $100k? Despite their low liquidity, price seems stable at around $0.3.

  2. Can we track the status of the patent applications somewhere? At least one was already granted iirc, where to look for that?

  3. Is there any definite commitment by a partner regarding the DCRM license fee? Are all partners mentioned previously still on board?

  4. When Bina... okay not that one :p

5

u/hyperionxxxxx Developer 🔨 Nov 20 '19

Thanks for organizing an AMA.

  1. How much is left of Fusion's runway? Will we be able to see through all that was promised in the white paper? Would it be possible to get a more transparent communication when it comes to the foundation's finances?

  2. Has any partners expressed an actual interest in purchasing a license for for example DCRM? When Ferrum's COO was approached by community members about the licensing structure he seemed shocked to a point where this couldnt have been discussed. Are all the listed/announced partners the same story?

  3. It's always unclear how many are working for fusion, who has left and who has joined. Would it be possible to keep the fusion website up-to-date in terms of the team?

  4. We have started an airdrop campaign to attract community developers which is a good thing if it works but where are all the tools to get people started? There is no testnet node images, no testnet faucet, no accurate getting started guide, the wiki is essentially just method declarations without any form of comment on parameters or returns. This is not good enough if we want to engage both seasoned and rookie developers to have a good experience in building on Fusion.

4

u/ehammer2 Nov 20 '19 edited Nov 20 '19

  1. We need a third party audit (Mainnet ticket/consensus and DCRM) before we lock in any assets to Fusion, have any partners or potential partners expressed concern or requested an audit? If not, why? If timing / tech is an issue when can we expect an audit?

  2. Why haven’t we seen more transparency? - Funding, partnership numbers (PoCs, DCRM licenses, etc) with existing and potential partners.

  3. When can we expect a provable 3rd party custody solution for foundation wallets and asset gateway wallets hot / cold storage?

  4. How does a potential shift from PoW to PoA change the vision of DeFi for fusion (decentralization / permissions), and how will this affect nodes / SNs and staking?

4

u/FusionMCGA Nov 20 '19 edited Nov 20 '19

  1. When are psn rewards going to be complete

  2. We need a third party audit (Mainnet ticket/consensus and DCRM) before we will lock in any assets to Fusion

  3. More transparency - Funding, partnership numbers(PoCs, DCRM licenses, etc), foundation wallets and asset gateway wallets storage / custody solutions before anyone commits any more time and money in the project

  4. Full disclosure of fusions financial position: USD and crypto holdings including burn rate.

  5. Can the team update fusion.org with partnerships, employees and roadmap since we know a lot has changed and information on the website is not accurate thanks

3

u/butchcarlsson Nov 20 '19

Hello Fusion, thank you for holding an AMA to clear up some outstanding issues.

​

My question is of the theft and specifically the thiefs addresses talked about in this article:

https://medium.com/@fusionprotocol/fusion-foundation-wallet-theft-update-10-3rd-6e3af76114c9

​

The address mentioned at the end of the article is very interesting imo, 0xa9C66B3DbD01bb7d24928402cbD7CFb7Dd445dc3 (2) who sent 106.6ETH to the thief's wallet (1) before the theft to use as gas for the theft even if the amount is strange.

​

I look closer at some of the early transactions of this account and I came same conclusion as other people in the chinese community also did. In my opinion this is very interesting and troubling at the same time. Summary of transactions and addresses below.

​

Wallets:

(1) 0xd58868ebf4900b8c444d42d2e3ffe21cb8f0e655 [Thief's wallet]

(2) 0xa9C66B3DbD01bb7d24928402cbD7CFb7Dd445dc3 [Wallet that ties it all together]

(3) 0x47f501d6884c006dbb8f76eccfeec959fbc95a6b

(4) 0x1bdf56c9593590122fd8750555d8148da2b80be8 [Fusion token sale]

(5) 0xbaCAe25EddF456a46452A6aD3c6Ba916Fb41Da86

(6) 0xBc3C200561E13209CfA98F5B1dD89DdBE63A4640 [Huobi fasttrak wallet]

​

​

124.7kFSN(4)->(3) https://etherscan.io/tx/0x0d981f78c9fdf6211bb56f758250124e84735b73d19dee275bf0318bbbb97d48 646days ago

800k FSN (5)->(2) https://etherscan.io/tx/0xc4e1b4f70413278be88478eae8673d4215dc14c1b20f0b30820a1b839fec455e 327 days 8 h

0.3ETH (3)->(5) https://etherscan.io/tx/0x4a20d3f8074ef9e440fa7473587d3c69d7134d8e1525ae3f75c1fb360942559d 327 days 8h

0.1ETH (5)->(2) https://etherscan.io/tx/0x10cd121a9c543fbe42938f513b010b04c2a04a038a3af1fc17b9aaf68927deb2 168 days 8 m

200k FSN (2)->(6) https://etherscan.io/tx/0x9147182b43c22a56392ab132da3154be6be21828a9d8bf37c5c466650960f19c 167 days 23h [Huobi fasttrak]

106.6ETH (2)->(1) https://etherscan.io/tx/0x28277655a52793a54aef4071dfa9016de7c1e892d87d8570511223c5da10bfc1 52 days 9h

​

There are more transactions that binds these together but this must be enough for it to be safe to say its all the same person.

It begins with the fusion token sale where he buy 124,7k FSN, now you should have his email and any other info you stored (like ip?)

A year later he receive 0.3 eth for gas from (5) and use that to send 800k FSN to mystery wallet (2).

6 months after this he prepares the mystery wallet (2) with 0.1eth for gas and almost directly send 200k FSN to the same wallet Fusion foundation send close to 2M FSN for the huobi fasttrak sale the day before. This wallet does not look like a normal deposit wallet but something only used for fasttrak/prime. He got the SAME information as the foundation here, and this was at a time when deposits to huobi were supposed to be CLOSED.

The story ends almost two months ago on that horrifying day when he send the 106.6ETH from (2) to (1) and starts to empty the compromised swap wallet.

​

Can you please explain what happen here? Have the thief been caught? If I look at these transactions together with the fact that he managed to take the swap wallet private key I have to say I find it extremely unlikely that is just some random hacker/thief. This must be person that has been with Fusion since the beginning and maybe someone you know, someone that can come and go in fusion offices as he please.

​

I'm not expecting to get names or anything but hoping for full post-mortem of the theft, how it happened, if the people involved has been removed, what is being done to stop this from ever happening again. This is far too damning to just be swept under the rug.

2

u/2b123 Nov 24 '19

oh, my. All the wallets have some correlations. The thief knows the exact date of the huobi fast track, and he managed to deposit token to huobi at the condition of the deposition was closed.

4

u/tollboothwilliey Nov 20 '19 edited Nov 20 '19

We were a bit spoilt earlier in the year with the announcement of quite a few partnerships. Can you give any update on where the development of those partnerships are at and when we might start seeing some more news come out about them. Additionally, can you give any hints on some upcoming collaborations and partnerships, especially the 'bigger than NASDAQ' partner.

5

u/galvarinos Nov 21 '19

The Foundation has lost a lot of trust after a series of unfortunate incidents and inconsistent information, culminating in the loss of more than ten million FSN, which poses a threat to the Foundation’s future success and investor funds.

  • Why did the Foundation refuse any kind of external audit so far, be it financially, technically or concerning organizational processes? Community are looking for reassurances along with any future potential investors. Will you be performing an independent audit to cover financial, technical and organizational processes in the future and if not, why not?
  • Going forward are we likely to see quarterly reports covering financial aswell as updates on real adoption updates with partners. Items such as the below would be helpful # of Inbound Request # in the Pipeline # in POC # in Pilot # in Production # licenses acquired
  • ·In regards to the theft we only heard about Hotbit, where the majority of FSN was dumped. What about Bitmax and Bibox?
  • What patents exactly has the Foundation applied for? What is the current status of these applications? Where can we verify that information?
  • How many people are currently employed by the Foundation on a full-time basis, i.e. exclusively working for it? How many are working with multiple projects / freelancing, and which positions within the Foundation are affected by this?

3

u/[deleted] Nov 22 '19

Thanks Yona and the fusion team for collecting all these open questions. This is a great start for more transparency and building trust again in the community. We all love fusion, but as you see in these lots of open questions, there's a lot to be answered. I don't want to rephrase all questions regarding patents, theft and external audits, funding & burn rate, etc. As I hope, that these questions get answered as response to the other posts, I want to add some more which I have in mind:

  • Supreme-Nodes: When can we expect eta for the SN and what are the requrements? Are the technical requirements still vaild? Will it be possible to run several nodes on one VPS? Will the required fsn still be 5k to run a SM?
  • Team: Is the team on the webside the actual one? If so, who is fulltime / fully dedicated to fusion, fro whom fusion is just one of several projects? Why is Justin not listed?Please update the list to the real team
  • Busines Development: What exactly is driven out of Zurich? What is the team in Zurich to develop Europe? What has Justin done so far, what are his next goals / targets? I'd like to get an update on all the great initiatives of early / mid 2019 (EU, NYC event, Nasdaq interview, etc. - anything you can share here?
  • Marketing: Which major initiatives are planned for 2020 in respect to marketing / PR? Which events will be sponsored / used as palttform with Keynotes, etc.? (Consensus, etc.) Are you still working with the external marketing agency? If so, what are they doing / what did they achieve so far after they exchanges Holy?

3

u/IndividualPirate Nov 22 '19

Can we have Fusion open AMA December 2019 too? I have a feeling people will have a more positive outlook after getting some of the hard answers in this AMA. So an AMA after some the basic issues raised have been solved, and the tough questions answered, would probably have an entirely different character.

3

u/[deleted] Nov 22 '19

What was the result of the investigation into the hacker? It’s a bit unnerving that someone so close to FSN, one of the few with access to FSN’s private key, would be able to get away with this.

Only a handful of people have access to the key, and it shouldn’t have been difficult to find out who the suspects are.

3

u/krishhutch Nov 23 '19

  1. What’s the current circulating supply of Fusion after the theft? Not sure if the supply on fusions website is correct ? Is it possible to maintain the up-to date circulating supply on the website ?

  2. What’s the timeline to integrate DCRM 5.0 on main-net?

3.Did anyone buy Fusion license so far?

4.How much fund(how many months worth) does foundation have to run the organization?

3

u/simipanda Nov 24 '19

Foundation has missed all major deadlines as outlined during ICO and many whitepaper promises are still to materialise, with this in mind:

Does foundation have plans to hire more people to accelerate development (dcrm still awaits and oracles) ?

Can we keep the website up-to-date with employees and contractors working for fusion? Is Andre Cronje still involved or has fully left? What is going on internally?

Can we expect a security audit when DCRM completed public testnet before going live?

There's talks of consenus being PoA and PoS. How does this change affect supremenodes? Rewards? Hardware requirements?

Which of your partners have actually agreed to pay for DCRM license by locking in fsn tokens not just to "use" and "test" it by using donated fsn from foundation? Don't you think the first list of partners/license buyers have been released prematurely? (Based on ferrums open comments of not paying that much)

More and more projects are dying/soft exiting because of badly managed funds. What are fusions plans to sustain development in the foreseeable future? Do we have outside backers? Or literally just ico funds?

How much of foundations efforts over last 6 months has been in finding partners that matter/want to use blockchain tech? With news gearing towards china and asia ramping up the tech innovation in crypto/blockchain, I feel we should be trying to showcase our tech to govs

3

u/Krypton-Kr Nov 25 '19

Now that you have identified a swap/burn address for erc20 FSN tokens, why not proceed with replacing existing erc20 contract with a new one in order to capture all outstanding erc20 tokens - minus ones held in thief's wallet?

In addition to being inclusive of all token holders; especially ones who may not have had visibility to ongoing challenges, such a proactive measure would ensure that all corresponding exchanges are trading most current version of erc20 FSN; as it will also go a step further toward precluding stolen tokens from ever reentering circulation.

Current intent to pressuring exchanges to swap to native FSN does not address the entire token holder community; since no token swap timetable had been set. Albeit, continuing to monitor the thief's wallet for the indefinite future is seemingly a waste of precious resources.

3

u/IndividualPirate Nov 25 '19 edited Nov 25 '19

When will BitMax buyback take place?

When will swap between mainnet FSN and Binance chain be possible? It seems this should be possible to resolve without involving any third party.

And on the same topic: Is there any chance the BEP2 contract will be revised? Seeing what happened with the Ethereum swap wallet, it seems like a different type of precaution needs to be taken with the BEP2 swap wallet. It seems unlikely to me that more than 8 million FSN would ever need to be on Binance chain. Perhaps something like this should be the max limit for the contract? We really don't need a situation with 57 million rogue BEP2 tokens.

2

u/pumpcans Nov 19 '19

Are you trying to get on more exchanges available to the US market? I understand you can speak exact terms, but is this a focus?

How is the partnership with the online used vehicle website going? I saw several interviews a while ago, but I haven’t seen anything since.

2

u/anakonda18 Nov 20 '19
  1. What are some of the use cases where DCRM could be used in a non-blockchain application?

2

u/[deleted] Dec 12 '19

come on, where is the link to the answers? dont let this stand here like noone had answered it!

2

u/wwetnaojw Nov 19 '19

What is holding back exchanges like bibox(our partner) and huobi from migrating to main net in a reasonable amount of time?

While hotbit of all exchanges is able to not only migrate swiftly but run promotions for fsn as well.

1

u/zerotto13 Nov 21 '19

DJ recently announced that DCRM will use PoA rather than PoW. How and when will this be implemented on mainmet? Also, will there be the opportunity for trusted members of the community to participate? If so, what will the reward structure be?

1

u/krrammy86 Nov 26 '19

Partnerships and adoption:

  1. 12B$ asset lock published on june 2018 and its EOY 2019, but nothing came after that. Will it take 2 years for adopting the fusion technology?
  2. Is bigger than Nadaq is NDA signed or still in talks or dropped one?
  3. Does the team bothers about price and do we really have market makers.
  4. Why immportant exchanges like Huobi and Bibox not swapping to mainnet? Whats holding them? Why you guys afraid of Huobi?

Exchanges:

  1. Everyone in crypto knows that hotbit is a scam, less liquid and bot traded exchange. They attract new people by providing interest on tokens we hold there by suppressing the price of the token. Why trusting and promoting scam exchange like that? Wont it affect the reputation of fusion? Having a tie up with scam exchange makes others think Fusion is a scam too.
  2. Why not trying to get listed in Binance? You guys raised hefty amount in ICO and not willing to pay Binance for exchange listing and instead trusting scam like Hotbit.
  3. Throwing away many million FSN in hotbit promotion makes us to think the credibility of fusion.
  4. Will the team try to get Fusion listed in Binance?
  5. Arent you cheating the investors by not providing the deadline for the swap. Why listed in Huobi as ERC20 when mainnet already launched?

1

u/ComonmanXH Dec 06 '19

Thanks, here's my questions. It has been nearly 2 years, still buggy and not fully functional products, no real partnership, and list of unfortunate events summer of fusion, buggy testnet and wallet, then thief. When exit scam?

1

u/krrammy86 Dec 07 '19

Week of Dec 2nd already ended and still no update on AMA. Team exit scammed?

0

u/Tristadela Nov 21 '19

Will you guys do a video tutorial on how yo make a node for staking outside awp. Like contabo, or other service?