Climbing to new heights safely and securely:
Sierrans, as we climb and hike to new heights together, we want to reassure you that we have all the essential safety equipment needed to keep you and your investments secure on our expedition.
We know new ventures can be fraught with danger; in fact, perilous, even for those with experience.
The Sierra team endeavours to empower the community with the knowledge needed to navigate this terrain. We want our community to feel confident and have the necessary information to embrace this project and interrogate other opportunities.
This article will explain what a Multisig wallet is, why the team has chosen to use one, and who SerriaDAO’s Multisigs are.
We will also explore the different Multisig scenarios discussed in the Sierra community and the various pros and cons. Finally, we will finish with a few key takeaways for our community and some important dates as we hike towards our Presale and Public Launch.
As always, the Sierra community is at the heart of everything we do. We hope this article informs our community and helps them in all their ventures.
*This article is not financial advice and does not pose itself as such. If you are unsure about an investment, always consult a qualified advisor.*
What is a Multi-signature wallet (Multisig wallet)?
Multi-signature wallets (Multisig) are virtual wallets that require more than one key to authorise transactions. This structure means that funds allocated to the wallet cannot be accessed or moved without multiple parties providing their keys.
Think of a bank vault that requires the bank manager, a senior clerk, and a depositor to provide their physical keys to unlock the door. Multisigs function the same but for virtual assets instead of physical assets.
For example, a Multisig wallet may have four parties who each possess an individual key to the wallet. It may require two of the four parties’ keys to authorise transactions from the wallet.
Multi-signature wallets distribute the responsibility and power among multiple parties. This system provides an extra level of security to the wallet as transactions require authorisation by multiple parties.
For projects such as SierraDAO, it means that wallet owners cannot transfer tokens received through the Presale from the project wallet without multiple parties authenticating the transaction. On the other hand, this also means that SierraDAO cannot send SRA tokens to Sierrans’ wallets without authorisation, but more on this later.
Multisigs function as an extra level of security, preventing misconduct by segmenting and distributing authorisation powers.
Who are the Multisigs for SierraDAO?
The security of Sierra tokens is essential to both the SierraDAO project and Sierrans.
Before investing in the project, it is vital that the community feel that their investment is safe within the project’s wallet and that the core team allocates these funds for the reasons specified and outlined prior (more information on this here).
To achieve this, SierraDAO has enlisted five different Multisigs, each with their own unique individual keys for the wallet.
Sierra has adopted a 3/5 structure to its Multisig wallet. This arrangement means that transactions can only be authorised when a minimum of three out of the five Multisigs agree to do so.
The core team has decided to onboard trusted Multisigs from outside the project to enhance security and build trust with the Sierra community.
Throughout last week, discord members have had the opportunity to suggest outside parties they believe are trustworthy, reliable, and experienced enough to take on this responsibility on behalf of the community.
These suggestions have been heard, investigated by the team, and recruited as key holders for SierraDAO’s Multisig. As a result, the team believe that we now have the perfect blend of experienced DAO professionals, trusted individuals, and core team members to provide comprehensive security for the SierraDAO wallet.
The Multsigs are as follows:
- Sir Summit (@SierraDAO co-Founder),
- SierraWGHT(@SierraDAO co-Founder and Head of Marketing),
- @indyza_(Code Reviewer and Member of @CryptoOlympians),
- @BuyHighCellLow (Code Reviewer, Member of @developer_dao, and close friend of @Munzann), and
- @3L3C70 (Sierra Community suggestion, and Founder of @Abachi_io)
From the above, we hope it is clear to the community that two core team members and three external trusted parties have keys to the Multisig wallet.
This arrangement means that no transaction can be enacted without the authorisation of at least one trusted party from outside the project.
How the Sierra Multisig wallet will work in practice:
Sierrans, who have dedicated their time, efforts, and expertise, have been assigned different roles which correspond to Whitelist tiers (you can find more information on this in our earlier Medium article here).
On the launch of the Presale (January 2nd, 15:00 UTC), Whitelisted Sierrans will be able to exchange their MIM for SRA tokens. This transaction involves interacting with the SierraDAO Multisig wallet.
In practice, this means that Sierran’s can only receive their SRA tokens from Sierra’s Multisig wallet when at least three signatures from the five parties authorise the transaction.
This system has implications for the wallet’s security and the fluidity of both the Presale and Public Launch.
Why 3/5, not 4/5 or 5/5?
Over the last few days, there have been many discussions in the community regarding the structure chosen by the SierraDAO core team. These discussions tend to revolve around the following questions: Why not a 4/5 or 5/5 format for the Multisig wallet?
These are essential questions, and we encourage this form of critical engagement by our community with SierraDAO and other projects.
To answer this question: there are more significant risks involved with these structures that the 3/5 design mitigates.
A 4/5 or 5/5 structure generates more significant risks of a failed launch and Sierran’s inability to receive their tokens. This possibility is due to the nature of Multisig wallets. They require a minimum number of authorising keys to permit transactions.
Therefore, in a 4/5 or a 5/5 structure, the Multisig wallet would need a disproportionate amount of parties to be active and ready to authorise transactions.
Should a Multisig not have internet access, be away from their computer, fall ill, or be unable to provide their key for whatever reason, then the Multisig wallet will be unable to confirm transactions and release SRA tokens.
This prospect risks undermining the project’s launch altogether.
We understand that these alternative structures appear to provide greater security on the surface, but it comes at the cost of risking the launch of SierraDAO as a whole. This risk is not a risk the core team, nor anyone in the community should be willing to take.
A 3/5 structure provides the best balance between risk and security. It means that our launch will be successful and relatively seamless while also ensuring that an outside trusted party must authorise any transactions from the wallet.
Key Takeaways for the community:
When executed correctly, Multisigs can provide extra reassurance to community members, and we encourage our community to consider the value and authenticity of this approach in other projects.
We hope to have informed Sierrans about the functionality of Multisig wallets, clarified any confusion regarding the structure of SierraDAO Multisig wallet, and presented a defensible rationale for the decision we have taken.
We are proud of the community that Sierrans have built throughout this project’s development, and we welcome critique and input from all our community members.
Discussion, be it within the community or between the community and the core team, is essential for transparency, confidence-building, and the overall sustained success of SierraDAO.
We encourage the community to continue critically interrogating SierraDAO and other crypto projects. Sierra is- and always will be- a community that acts in good faith and supports each other to develop the skills and knowledge required to prosper within the crypto space.
Please continue to stay active, curious, and analytical; continue to help all those in the community better understand crypto-related tools and concepts . It is these characteristics and actions that make the Sierra community the exceptional place it is.
By continuing this approach, we can embody the true meaning of #WGHT.
Sierrans, keep your eyes peeled, you climbing boots tied, and be ready to engage! We have an exciting few days in the build-up to our Presale on January 2nd at 15:00 UTC.
Shortly, we will be releasing a comprehensive roadmap which will provide a clear and detailed route of direction for SierraDAO’s Public Launch and beyond.
We also invite all Sierrans to join us and our co-founders (@Sir Summit and @SierraWGHT) for an AMA prior to the launch of our Presale on January 2nd at 14:00 UTC!
This is a showstopper of an AMA where the co-founders will discuss the dev team’s testnet and Sierrans will hear firsthand about the robust testing of Sierra’s Presale smart contract. Sierrans will also get a sneak peak of the Sierra Dapp, hear about SierraDAO’s development plan for the coming months, and learn more about Sierra’s marketing strategy for launch.
Finally, thanks to the team’s data analysis, we believe there will be some tokens remaining after the allocation of the Presale.
As such, there will be a brief Public Sale for tokens running for one hour between 20:00 and 21:00 UTC on January 4th. Any tokens not bought during this period will be burnt immediately afterwards, thus not affecting supply for the official Public Launch on the 5th of January at 21:00 UTC.
SierraDAO Co-founder AMA, January 2nd, 14:00 UTC.
SierraDAO Presale, January 2nd 15:00 UTC — January 4th 19:00 (open for 52 hours).
SierraDAO Public Sale, January 4th 20:00 UTC — January 4th 21:00 UTC (open for 24 Hours)
SierraDAO Public Launch, January 5th, 21:00 UTC.