Callisto is a new Ethereum-based blockchain developed by the Ethereum Commonwealth team - one of Ethereum Classic's dev teams. They have previously brought us ERC223 token standard, ClassicEtherWallet - a wallet for Ethereum Classic tokens, DexNS - a DNS service for Ethereum Classic, among other projects.
At Ethereum Classic's block 5,500,000, or roughly around March 2nd, 2018, Ethereum Commonwealth team will snapshot the ETC blockchain, and CLO tokens (the native currency of Callisto blockchain) will be airdropped to the same addresses on the new blockchain. Meaning, if you had 10 ETC at block 5,500,000, you will be awarded 10 CLO when the Callisto launches.
Technical parameters of Callisto Blockchain
- POW Algo: Dagger Hashimoto (Ethash) (yes, Callisto is a mineable POW cryptocurrency)
- Block interval: ~15sec
- Block reward: 600 CLO (30% treasury fee)
- 100% compatible with Ethereum Virtual Machine: Supports running all of Ethereum's and Ethereum Classic's DApps and smart contracts
- Maximum supply: 6,500,000,000 CLO.
Pretty standard except for the treasury fee. For each block mined, 70% of the reward will be attributed to the miner, and 30% will be deposited into the treasury smart contract. What is this about? What will the treasury spend this money on?
Callisto whitepaper suggests the following two use cases:
Official Smart-contract Auditing Department of CLO & ETC
Smart contracts are responsible for handling real people's money with no ability to reverse a transaction, even if it occured due to a coding mistake.
Ethereum's smart contracts have had some bad history with respect to sub-par quality smart contracts getting widely adopted. Some examples include:
- The original The DAO hack, that caused the ETH / ETC split to occur
- Multiple Parity multisig wallet hacks
Unlike traditional web apps that you can correct as you grow and get more users, smart contracts are immutable - meaning you have to start all over. It's like if Facebook said Oh, we found a bug, so please now go to new-facebook.com, register again and reupload all of your pictures. Thus, it is very important that a big smart-contract project receives reputable security audit before going live.
It is currently very had to find quality smart contract auditors, and they typically charge exorbitant fees that are quite often too much for a small team to pay for. Here is how Ethereum Commonwealth wants to fix this problem for ETC and CLO smart contracts.
- A registry of audited smart-contracts will be created. Every smart-contract that successfully passes the security audit will receive an officially audited status. Otherwise contract will remain non-audited by default.
- Everyone will be allowed to submit auditing requests and this is completely free for smart-contract developers.
- A full-time team of smart-contract auditors that will review each requested smart-contract will be hired. This takes time but it is better to wait rather than to launch a smart-contract with a critical vulnerability that will result in millions of dollars lost or stolen.
- Smart-contract auditors will be paid with CLO from the Callisto treasury.
- ETC and CLO smart-contract auditing requests will be accepted for free. We aim to improve the security of ETC ecosystem at all.
In order to hire and pay a top-notch smart-contract auditor team, a portion of the treasury fund will be allocated to the dev team.
The big innovation of Callisto blockchain is the cold-staking protocol, scheduled to be deployed on the blockchain in November 2018.
Callisto aims for CLO to become a store of value token. The problem with new tokens is that traders end up speculating on the price too much and thus make the cryptocurrency harder to use and harder to justify storing any value in. In order for the price to be meaningful only a small portion of the total supply should be traded on the markets. The rest of the monetary supply should be used in normal currency circulation or locked up.
With your fiat, you would just put your money in a bank and earn some interest rate on top of it.
Cold staking protocol is like a growth account for your CLO. You lock you money away for a minimum period of one month, and you withdraw what you have put in plus a portion of CLO from the treasury fund. Cold staking does not require you to leave your computer running, and this staking does not participate in block validation or anything of the kind. The cold staking protocol is very simple and it is designed to incentivize HODL'ing the cryptocurrency.
Planned Hard-forking Dates: 5 March and 11 November
Since Callisto has a fund for paying developers to work on the blockchain, it is prudent to think about future upgrades early on. Hard forks typically get announced too late in the development cycle, which causes problems for users, who have to transfer their money into appropriate wallets, for miners, who have to upgrade software on their mining rigs, and for exchanges, who have to update software on their end as well.
The mechanism for upgrading a blockchain is a hard fork. Callisto commits to having a maximum of two hard forks per year, on March 5th and November 11th. If a piece of software is not ready for release, the hard fork will be skipped and this update will land in the next scheduled upgrade window.
Callisto Project Predictions
Ethereum foundation, the organization that works on Ethereum blockchain, is able to stay afloat because of corporate sponsorship, enterprise consulting gigs, and more importantly a massive premine of ETH.
For another organization to innovate on blockchain technology it can be tough to secure funds. Taking a portion of block reward to fund development of the blockchain is a smart and well tried idea.
In particular, DASH and Decred both give 10% of block reward to their development teams.
Callisto takes it a step further, and on top of giving 10% to Ethereum Commonwealth development team, they also take additional 20% and distributed it among cold-stakers, which should incentivize HODL'ing behavior and establish CLO as a valuable store of value token.
The DAO was just one implementation of the DAO idea. When implemented properly DAOs represent decentralized, automatically-governed, efficient organizations. ↩︎