EOS Network Still Frozen by an Airdrop
EOS transactions ground to a crawl in the past days, breaking down from setting records as the fastest blockchain.
The EOS network suspiciously disappeared from the leading position on Blocktivity. The network, which had peaked at above 87 million transactions per day, and boasted of its high bandwidth, is showing anomalous behavior as its speed ground to a halt.
Based on the tracking by Titan Labs, almost all leading tokens, distributed apps and contracts on EOS have their activity severely curbed.
But the network is not idle. In fact, it is working harder than ever, only on a single smart contract. The EidosOneCoin contract is especially created to accept 0.01 EOS, refund 0.0001 EOS, then hand over 0.0764 EIDOS. A few days ago, when the anomaly was noted, the contract returned 0.811 EIDOS. This means rewards are dropping as more users try out the contract.
The EIDOS scheme has taken over the network, and starts to look like a pyramid, seeing diminishing rewards from the airdrop.
In the past week while EIDOS also saw its price slide from $0.056 to $0.029, making the scheme even less lucrative. Despite the coin being “free money”, the speculation seems to be over, at least for now. But the EOS network is yet to recover.
EIDOS trades thinky on the Biki exchange, and a handful of other obscure markets. Still, it is worrying that a small token with an automatized derivative “mining” model can freeze up one of the leading networks.
The event recalls the FOMO game on Ethereum, which took up nearly 60% of all gas and prevented other smart contracts from working. The case shows that even the EOS network does not have unlimited resources, and is also vulnerable to the economics of buying up the entire network’s resources.
Currently, large-scale users with a lot of staked coins can still afford the resources, but new arrivals may find it difficult to use the network.
According to EOS New York, the case is not congestion but competition. If this is the case, then the seemingly democratic EOS network has created an oligarchy of large-scale users and influential EOS holders.