Ready, Set, Tezos: Project Releases Activation Keys

Tezos, one of the most awaited projects, has a few more steps before its new genesis block.

Tezos is making another move that may bring its launch closer: releasing activation codes. Right now, owners of pre-release tokens, or Tezzies, are still sitting on their holdings and waiting for the migration.

Tezos, which faced legal issues and was delayed, remained in the shadows while other projects like EOS and TRON managed to move to the mainnet stage. But now, another star may shine on the horizon - provided the new digital asset is accepted on exchanges.

The newly acquired codes will be used to access balances once the beta version of the Tezos network is launched. There is no deadline to complete the process. For now, Tezos still has several decisions to make before proposing a genesis block.

Tezos (XTZ) pre-launch tokens are trading in a relatively limited range, and reached $4.30, with no significant growth after the news. Still, XTZ is near peak levels against Bitcoin, as trading is very limited and most XTZ owners wait for the mainnet launch to realize better profits.

The Tezos network will include a rather steep learning curve, comparable to that for the EOS launch. Tezos has an entirely different ledger verification and reward system, which uses staking based on all user wallets. The Tezos network is thus much more distributed, but also may require user effort to successfully run.

“The launch of the betanet will involve the community running “nodes” that execute the Tezos software and connect to each other in a peer-to-peer network. Since it takes seven “cycles” (or 28,672 blocks, around three weeks depending on the block time) for baking rights to be assigned to network participants, no block rewards will be issued by the protocol during this period,” explained the Tezos team in a recent post in the run-up to the betanet launch.

In addition to technical difficulties, XTZ owners will have to go through a KYC procedure to verify identities. This will include all contributors. Tezos cites tightened regulations for performing the KYC now, and not at the time of the ICO:

“During the Tezos Foundation’s donation period in July 2017, there was no blockchain ecosystem or industry consensus on this subject. As the blockchain ecosystem and industry has matured over the past ten months, it has become a best practice to verify that contributors meet basic KYC/AML criteria.”

One of the pressing issues for Tezos is that the XTZ asset should not be considered a security. This is one of the reasons for the terms used, naming the ICO a donation process, and the distribution of pre-launch tokens an act of goodwill.