On December 8, the EOS community voted to spot payments to its developer, Block.one, due to a lack of financial transparency and slow progress in the chain. In return, the EOS community, represented by the ENF (EOS Network Foundation), will continue to lead the EOS network as the world’s largest DAO.
What went wrong between the EOS community and the developer who built the chain?
What is an EOS chain?
Launched in June 2018, EOS is a public chain that can run many applications and aims to become a Windows blockchain, with one million transactions per second (TPS) to support developers.
Initially, EOS raised $ 4.2 billion in funding, making it the largest in ICO history. After the mainnet went online, EOS experienced explosive growth in the ecosystem. Analysts have called EOS a key player in Blockchain 3.0 and even a “killer of Ethereum”.
However, the EOS is slowly falling after a short-lived boom. According to Imprint analytics, TVL chain EOS dropped to 34th place of all public chains by December 21st.
In addition, the EOS ecosystem consists of DEX, lending, assets and yield projects, with DEX being dominant.
Why is EOS declining?
Most people blame Block.one, EOS’s developer, for poor blockchain performance. According to many in the community, the development work was slow, of poor quality and did not deliver on its initial promises, including visions of multi-chain solutions, million transactions per second and more. With $ 4.2 billion in funding, the EOS still lacks the ecosystem incentives that many expected. Compared to all the incentives and hackathons from current emerging chains, EOS is disappointing.
In addition, although the EOS uses the Consensus-Sharing Consensus Mechanism (DPOS), many question the lack of decentralization, as its super-nodes are dominated by several large companies. Finally, [who] criticized Block.one for its lack of financial transparency.
The EOS community rejects Block.one
Block.one announced on November 8 that it is transferring 45 million EOS tokens to Helios, a new tool run by Brock Pierce, to create venture capital funds, develop financial products at the institutional level and build infrastructure for developers.
Ready-to-sell tokens do not belong to Block.one, and ENF (EOS Network Foundation, EOS Community Representative) strongly opposes the sale. After more than a month of negotiations, they finally decided
- Block.one must give 45 million EOS to Helios, 30 million to ENF, 1 million to Pomela, the EOS ecosystem financing platform, and one million to EdenOS, the management system.
- IPs related to EOS, including community accounts and eos.io domain names, must be returned to the community.
However, although Block.one transferred 32 million EOS to ENF, Pomelo and EdenOS as promised, they did not return the IP associated with the EOS community.
In response, ENF froze the EOS balance of the Block.one account through a node vote and demanded that Block.one withdraw its EOS fund within one day and return it to the EOSIO IP community. At the same time, the EOS community decided to stop payments for Block.one.
On December 20, ENF leader Yves La Rose announced on Twitter that the EOS community has decided to abandon the EOS-related IP and plans to renew the EOS IP brand and code base.
In addition, EOS Network founder Daniel Larimer expressed support for this decision:
“Consensus means ‘voluntary association’ and the right to say ‘no,'” he wrote [where?]. “Separation sometimes means that one person leaves everyone voluntarily, and it also means that everyone leaves one person.”
EOS “Declaration of Independence”
Since ENF broke with Block.one, ENF announced its grant plan on December 10, seeking to create an open and transparent reporting system.
EOS founder Dan Larimer said that a vision, plan and sales proposal for joining EOS are being developed. EOS will soon be DAO of DAO, accounts will be free, and countless people will be rewarded for contributing and inviting others to do the same.
EOS has also announced its upgrade schedule.
This will be the first time EOS has worked without Block.one.
“Never underestimate the power of a small group of dedicated people to change the world. In fact, it’s the only thing she’s ever had. ” (Yves La Rose).
Voice against Block.one is one of the first major examples of decentralized management in action. Given that public chains are constantly emerging and DeFi and GameFi are thriving, people can look at the EOS vote to see that decentralized governance can be more than just a word.
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