Polygon Labs has written an open letter to the EU regarding Article 30 of the DataAct with the aim of safeguarding decentralized software development. The Chief Policy Officer of PolygonLabs, Rebecca Rettig, tweeted the letter, which contends that the proposed legislation is excessively broad and probably unenforceable in decentralized systems.
Ledger has taken part in suggesting modifications that would limit the scope of Art. 30 and safeguard the advancement of decentralized software. This provision places obligations on any entity that provides smart contracts within the framework of an agreement where data is to be made accessible.
However, as all smart contracts share some sort of data, the proposed law is too broad and could have serious consequences for permissionless smart contracts.
Polygon Labs Addresses Concerns With Article 30 Of Data Act
Polygon Labs has raised concerns about certain language in Art. 30 that may have the unintended consequence of prohibiting permissionless, autonomous smart contracts and related applications.
Specifically, the clause in the preamble to Art. 30 – “[t]he party offering smart contracts in the context of an agreement to make data available.”
Without a more precise definition of both (1) “the party offering” (to exclude software developers) and (2) “an agreement to make data available” (to apply only to “enterprises” and “personal data” as those terms are defined in the Data Act), Art. 30’s preamble will inadvertently capture a significant number of smart contracts.
The proposed amendments seek to exclude software developers, clarify that smart contracts aren’t the “agreements,” apply to “enterprises” (not software or developers), and only for “permissioned” systems.
Additionally, the amendments narrow “data” to only personally identifiable information (PII) and confidential business information.
The suggested changes aim to reconcile the Data Act with MiCA’s provision that excludes “crypto-asset services delivered in a completely decentralized manner.” Simultaneously, these amendments will enable EU policymakers to fulfill the Act’s objectives of safeguarding user and business data.
However, Rebecca Rettig asserts that Polygon Labs has committed to collaborating positively with the European Union’s and global’s policymakers and regulators.
The company aims to guarantee that any regulations are adaptable to change and can evolve with innovation progress. Additionally, they intend to establish adequate protective measures for users of blockchain-based software.
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