I am studying Web 3.0 in the Ethereum ecosystem. I don't understand much yet. As research, I think out loud here, in public. I'm looking at an example web 3.0 project, Livepeer, a decentralized blockchain platform for video streaming, which delivers a concrete, real-world service.
Livepeer issues a token called LPT, which powers the blockchain, causing the video streaming service to operate. Someone who purchases LPT tokens has the option to delegate (stake) those tokens with a different party, an "orchestrator." This process of delegating (staking) tokens is common in Ethereum world. Ethereum is a proof-of-stake blockchain, and participants cause the blockchain to function by proving they have staked so many tokens. Participants thereby earn rewards.
In Livepeer, the participants, that is, the orchestrators (aka node operators), need tokens they can "stake" so they can cause ("fuel") the Livepeer blockchain to function and so they can earn rewards.
In Livepeer, multiple orchestrators compete to persuade LPT holders to delegate/stake LPT tokens with each orchestrator. Each orchestrator publishes terms indicating the orchestrator will take a stated cut of rewards earned from using staked tokens and will deliver a stated reward to the token holder.
I'll bet the relationship between orchestrator and token holder is governed by a "smart contract." But, around that smart contract could be legal problems. The smart contract code might be flawed. Or surprises like bankruptcy could happen. So I imagine disputes between orchestrator and token holder. I'll bet there's room for written terms and conditions between orchestrator and token holder. Ts&Cs might address: Is orchestrator legally liable if the process doesn't work as token holder expects? Is that liability limited or unlimited? Are there circumstances where orchestrator or its creditors may seize staked tokens or the rewards?
I'll bet there is industry custom within Ethereum world answering these kinds of questions, but I'll bet that custom is often ambiguous.
I imagine one party or the other publishing Ts&Cs, stating if we do business, here are the terms. I wonder whether there are any standard Ts&Cs for orchestrators and token holders in Ethereum world.
I imagine one party publishing terms that conflict with the published terms of the other party. This conflict would manifest a new instance of an old controversy in contract law: "battle of the forms" (topic in my SANS LEG523 course).
Can anyone enlighten me? What have I gotten wrong? Where can I find insights on questions above? Thanks!
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