Tezos Stiftung is trying to introduce retroactive KYC and to impose new Terms & Conditions upon us ICO contributors, while at the same time refusing to issue us any refund. This attempt is unethical (it's retroactive, contributors were not informed beforehand), humiliating (pushed under the threat of spoliation), dangerous (it violates contributors privacy putting them in danger, de-anonymizes years of their previous BTC/ETH transactions, and compromises the privacy of all Bitcoin and Ethereum users), disastrous (a permissioned blockchain is useless: it's just a distributed database), unfair (the new Terms & Conditions force contributors to give up all their rights). Blockchains should be permissionless. We consider a permissioned, KYC-based "blockchain" as an outright scam no one should partake in.

XTZ supply is not hard-capped. Instead, XTZ supply is constantly inflated ad infinitum.

Via on-chain governance the inflation rate can be increased automatically, without even the need for an explicit hard fork (as in a traditional blockchain). Unsophisticated users might not even notice the increase of monetary base. This is eerily similar to how fiat currencies are debased. We predict that, using Keynesian talking points, special interests will soon begin to push their own agenda to inflate the XTZ money supply, and thus dilute ICO contributors.

20% of XTZ supply is premined out of thin air and assigned for free to Tezos Stiftung (TS) and DLS.

This is unfair to ICO contributors, who had to pay a high price to buy their XTZ. It also opens an attack vector: TS/DLS can be coerced into dumping their stake onto the market, potentially driving XTZ price to zero. They could also be forced to transfer their stake to an attacker who could then use it to manipulate XTZ market price.

Tezos Stiftung now holds more than $500M in contributions: this is more than enough to fund competing teams developing the Tezos idea. Premined coins are not only unnecessary: they directly harm the financial interest of ICO contributors.

DLS has deliberately deprived investors of liquidity, while at same time announcing and missing launch at least three times. In the meanwhile, Tezos has been losing a substantial market share to the EOS pre-launch token. By choosing not to issue a pre-launch token, DLS harmed the best interest of ICO contributors.

KYC-Tezos on-chain governance is based on unrestricted voting power. Unrestricted democracy is an obviously broken governance model. The problem with such governance mechanism is the so called "tyranny of the majority" or "mob rule". Constitutions exist to define boundaries and protect non-negotiable rights.

In KYC-Tezos a majority can vote to inflate the money supply, censor a specific address, or manipulate a smart contract.

KYC-Tezos is not trustless, and is therefore not resilient to manipulation.

Tezos Stiftung, DLS and its developers are trusted parties holding special powers in the network: big voting stake, strong influence over other community members, and more. They also hold fiat funds, and are all under government jurisdiction and scrutiny. These attack vectors can be easily exploited by an adversary who's able to coerce TS/DLS into implementing a specific agenda (e.g. a government agency enforcing financial regulation).

A blockchain is only useful when it's trustless. Otherwise it's just a slow and expensive database. We consider KYC-Tezos an innovative distributed, trusted database. It's just a matter of time until KYC-Tezos own "DAO event", where TS/DLS will be coerced by some government agency to censor or manipulate a smart contract.

As long as KYC-Tezos is the only Tezos implementation, it holds a de-facto monopoly over ICO funds as well as over potential users. Monopoly breeds inefficiency: delays, missed deadlines and governance failures are its direct consequences. This monopoly benefits a special group, but it hurts contributors. A monopoly on TS funds serves DLS interests better than contributors interests.

PoS is still experimental technology. In a PoS consensus blockchain, decentralization of stake is a vital security requirement. In KYC-Tezos 20% of coins are premined and assigned to Tezos Stiftung and DLS, creating dangerous centralization of stake and undermining the security of the consensus protocol.

Tezos Stiftung tracks users with third party tools (e.g. Google Analytics) on its websites. Additionally, TS may have collected contributors emails at contribution time. This means KYC-Tezos transactions can be easily de-anonymized by TS.

A deliberate effort is underway to conflate Tezos with KYC-Tezos and stop the conversation about alternative implementations. We are banned from reaching out to Tezos ICO contributors on any Tezos community outlet (Reddit, Riot, Telegram). Administrators of those groups spread FUD around TzLibre and went as far as using our pseudonym to lure unsuspecting users into providing private contribution data in order to create confusion (we will never ask for your private contribution data).

Blockchain's raison d'être is censorship resistance. A true blockchain community should welcome open discussion, free market competition, permissionless innovation, alternative implementations. A blockchain community that deploys censorship is a failed one.

TzLibre is 100% permissionless, with no KYC. Tezos contributors can redeem TZL tokens regardless of their KYC status. As Tezos ICO contributors we even refuse to undergo KYC to claim our own XTZ, and we protect and support all contributors who refuse to KYC. We are developing solutions to allow for XTZ redemption without KYC with an escrow-based private keys marketplace. We also won't agree to the new Terms & Conditions, and we're planning legal action against Tezos Stiftung for their outrageous KYC attempt.

TzLibre has a hard-capped supply of 763,306,929.68 coins. The hard cap is a non-negotiable, hardcoded rule: it can't be changed via on-chain governance.

No coins are created out of thin air and assigned for free to special groups. Tezos ICO contributors are more protected because TZL coins are more evenly distributed. TZL coins are more valuable because, unlike KYC-Tezos, TzLibre founders don't get any free coin.

Following the EOS example, TzLibre issued a pre-launch token to provide immediate liquidity to ICO contributors and prepare for launching the network. The pre-launch token is a placeholder for the TzLibre genesis block. Thanks to the pre-launch token, TzLibre does not rely upon KYC-Tezos blinded genesis block.

Unlike KYC-Tezos, no one holds special powers in TzLibre on-chain governance decisions. All voters are equal and vote with their stake. There are no premined coins in TzLibre: founders can't influence decisions with their own stake.

Following Satoshi's example, TzLibre founders are pseudonymous to stay protected from undue pressure, coercion and special interests. TzLibre development team is open, with no developer in charge, and no private company behind.

TzLibre adds a hardcoded on-chain Constitution to on-chain governance. It is a set of immutable norms encoded in the protocol. These rules are hardcoded and non-negotiable. They can't be changed with on-chain governance.

Some of these rules are:

• 763,306,929.68 coins hard cap
• smart contracts immutability
• transactions irreversibility
• addresses uncensorability

Real blockchains, such as Bitcoin or Ethereum Classic, are trustless. Any trustless blockchain needs strong Schelling fences: an unbreakable social consensus on non-negotiable rules.

The TzLibre Schelling fences are:

• No forks
  To protect the network from social attacks, we shall never fork. The TzLibre network will upgrade only via on-chain governance. Forks shall only be permitted for fixing fatal issues within the on-chain governance protocol.
• Trustless governance
  As soon as the developer community is mature, TzLibre founders will cease to hold an operational role and will only maintain an oversight role. No single developer will ever be in charge.
• Full pseudonymity
  To be protected from coercion and undue pressure, all TzLibre developers must maintain absolute pseudonymity. In our community code will only be evaluated by its quality. No trusted entity or company will be accepted by the TzLibre community.

As with KYC-Tezos, TzLibre is also based on PoS consensus. Decentralization of stake is therefore of vital importance for the security of the network. By removing 20% of coins (TS/DLS premine), TzLibre stake is more evenly spread across multiple entities. Consensus is therefore more secure and harder to tamper with.