EOS Network Returns to Full Capacity After End of EIDOS Mining
A token airdrop in the past week slowed down all other distributed apps on EOS.
The EOS network is slowly returning to normal, after the derivative mining and airdrop of the EIDOS token. Now, EOS carries above 23 million transactions per day, still down from an absolute record of the past year above 87 million transactions per day.
The EOS network sprung into action just as fast as its capacity was blocked by the EIDOS scheme. What was unusual was that some users paid in significant amounts of EOS into a scheme that promised nothing more than a token.
What made the success of EIDOS was a distributed app that looked like an appealing form of reward generation.
The so called mining process skewed the mechanics of the EOS resource system, in the end requiring large-scale EOS owners to subsidize the activity.
The EIDOS market price is down by about 6% in the past day, to $0.026, and so far relies on limited listings. The asset may also generate speculation aside from the mining mania within the TokenPocket app.
EIDOS is not the first scheme of this kind. Previously, EOS-based simulated mining had spread for the Enumivo (ENU) token. The new launch is not a coincidence, as the scheme was proposed by the creator of ENU, Aiden Pearce.
A recent blog posting explained the ascent of EIDOS, which took all of a week until the scheme fizzled out. Early adopters and large-scale EOS whales could reap the most rewards, then dump EIDOS tokens on others.
The effect of EIDOS was not in stopping blocks, as block producers still ran the network without a problem. But it was a war for resources on EOS. The effect of the simulated mining was amplified by two factors- social media like WhatsApp that spread the message, and wallets and side services that actually borrowed EOS and computational resources, to offer simulated mining to their clients.
It is possible that similar schemes will be repeated in the future, in effect becoming a pyramid scheme of EOS resources, benefitting newcomers and EOS “whales”.