Brendan Blumer, CEO of Block.one has announced EOS will channel $1 billion of its historical token sales proceeds towards EOS projects. The decentralized app and smart contracts platform has so far raised $400 million in a year-long Dutch style auction token sale. The project has come under criticism for raising too much money on questionable terms. Brendan reiterated EOS was already in talks with critical partners, some of whom were migrating from Ethereum. No date was shared for allocation of capital but is likely once the token sale ends in July 2018.
Although not an official announcement, Brendan's comments on Sunday, 8th October at 13:04 GMT put doubts to rest. He said on telegram:
“EOS is the most well-funded project in history, and we plan to soon announce a program for up to 1,000,000,000 USD of capital for EOS projects; we're amidst onboarding a few critical partners first that will give EOS and this program the world-class credibility it deserves”
EOS is a new blockchain project using delegated proof of stake (DPOS) as an alternative to popular proof-of-work chains. The project is not shy about going after Ethereum's market - decentralized applications and smart contracts. In fact, the projects CTO, Dan Larimer, has a long-running intellectual feud with Ethereum's inventor, Vitalik Buterin.
The project opted for an unusual route to raising funds. 1 billion tokens are on offer in a year-long ICO that ends in July 2018. There is no fixed token price, and all token sale proceeds go to Block.one, a private company registered in the Cayman Islands.
This odd structure of a token distribution has raised eye browsers amongst speculators, investors, and spectators. EOS has no live blockchain running, in addition to a terms of the sale that explicitly warns investors the tokens are worthless.
“The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform.”
Brendan and the team at Block.one have had to fend off accusations, assuring token holders EOS is on schedule to deliver as per the roadmap. On Sunday, on the EOS official telegram channel, Brendan said the $1 billion would come from
"Block.one, Partners, and top VC's; we aren't ready to share specific parties quite yet".
"Where other projects use the incoming capital from tokens to burn electricity, block.one will show the strength of leveraging capital up and driving it back down to the entrepreneurs taking this space forward with real innovation."
EOS claims its design is superior to existing public blockchain designs such as ethereum. The DPOS blockchain brags a higher performance of up to 100,000 transactions per second (TPS) compared to Ethereum's current 30 TPS maximum capacity.
Brendan revealed large companies are courting EOS, with other projects planning to switch from Ethereum to the EOS blockchain.