2 years ago
Polygon Labs and Ledger are urging EU lawmakers to amend definite clauses successful the Data Act related to rules for astute contracts.
The companies wrote successful a joint unfastened letter that the existent mentation of Article 30 of the Data Act volition “inhibit innovation and economical growth” successful the European crypto manufacture arsenic it does not relationship for the intricacies of astute declaration systems that are permissionless.
They added that the Data Act intends to “reduce the integer divide” to let everyone to enactment successful these emerging systems; however, the existent authorities of Article 30 volition apt person the other effect and bounds adjacent information successful these systems
“We respectfully petition that you see the projected revisions to Art. 30 discussed beneath to guarantee that this caller instrumentality does not inadvertently seizure open, transparent and permissionless parts of emerging blockchain technology.”
Recommendations
According to the letter, definite clauses successful Article 30 request to beryllium changed arsenic the deficiency of clarity and specificity successful the connection broadens its scope beyond what is necessary.
It added that this could pb to an inadvertent and “unintended effect of prohibiting permissionless, autonomous astute contracts and the applications” that volition undoubtedly autumn nether this umbrella.
The main contented raised successful the missive is Article 30’s preamble, which stipulates that requirements wrong volition beryllium placed connected “the enactment offering astute contracts successful the discourse of an statement to marque information available.”
However, the missive argues that a important information of astute declaration systems person nary specified enactment arsenic they are autonomous and volition beryllium incapable to comply with the Data Act’s mandate.
No offering party
The companies urged lawmakers to revise the clause to guarantee it tin lone beryllium applied to “permissioned” astute declaration based-systems that person an “identifiable earthy idiosyncratic oregon firm entity” that owns and operates it.
They besides requested lawmakers to exclude bundle developers moving connected decentralized protocols and applications from the word “party offering astute contracts.”
“Given the autonomous quality of dApps and that nary enactment “offers” them, we suggest the EU see a circumstantial amendment to Art. 30 to exclude bundle developers – those who constitute and people codification – from the scope of the proviso to guarantee that those engaged successful bundle improvement are not inadvertently considered a “party offering” astute contracts.”
Additionally, the missive acknowledged that definite projects could assertion to beryllium decentralized but inactive person points of centralization. As such, lone excluding bundle developers from the word ensures that entities with centralized power implicit these protocols are held accountable.
The missive urged lawmakers to clarify that “an statement to marque information available” tin lone use to “traditional contractual agreements” betwixt 2 radical oregon firm entities.
The existent iteration of Article 30 forces centralization owed to the clause that a astute declaration indispensable person the functionality to beryllium terminated. As mentioned above, this would not beryllium imaginable without a centralized entity controlling the system.
It besides recommended that Article 30’s scope should beryllium defined intelligibly by specifying that “agreement” lone refers to idiosyncratic data, commercialized secrets, oregon different delicate concern information.
Polygon and Ledger closed by requesting lawmakers to guarantee that the connection and scope of the Data Act are akin to that of the Markets successful Crypto Assets (MiCA) regulation, which accounts for afloat decentralized cryptocurrency projects and excludes them from requirements placed connected centralized entities.
The station Polygon, Ledger impulse EU to amend astute declaration rules forcing inadvertent centralization appeared archetypal connected CryptoSlate.
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