Block.One To Join EOS Voting After All

Published on 29 June 2018 by Cryptovest Staff

The promise of Block.One to leave the EOS project to the community was soon broken, and the whale wallet of the firm will be able to sway voting.

EOSkeeps reforming its governance structure, despite promises it would work immediately to solve all the limitations of crypto coins. Initially, the Block.One entity, which sits on enormous Ethereum and EOS reserves, said it would leave the protocol and constitution to the community.

https://twitter.com/EOS_io/status/1012348386370977792

But after a scandal involving the freezing of 27 accounts with a confusing procedure, a constitution remake was proposed, requiring another vote. This time, however, Block.One would be much more involved with the process.

In theory, with 90 million EOS, Block.One could assign all 21 block producers, and also sway other decisions.

Additionally, Block.One has stated it is open to proposals from block producers that may receive support from Block.One.

For now, it turns out that several whale wallets are capable of creating a cartel within block producer by voting for each other, with several identified producers that are electing other BPs in turn. Those possibilities are sometimes dismissed as attacks against EOS, but the community finds the potential for influence more and more worrying. In theory, with its influence, Block.One could change the rules of EOS at will.

The EOS market price, at the moment, remains supported, though it is highly dependent on Tether (USDT) pairings. Just weeks after Binance launched the trading pair, EOS sees more than 43% of its volumes come from USDT. This helps the asset de-couple from Bitcoin, and lose much less despite the slide of BTC prices to $5,800. However, the inflow of USDT also means a form of artificial liquidity, as it is virtually impossible to realize profits from EOS for cash.