The EOS network is having double troubles - on the one hand, the technicalities of running the network and the preparation for the upcoming dApps. But there is also trouble with the human-readable rules. The EOS Constitution, a document unseen in other crypto projects, has proven unfeasible in the real world, and there have been calls for an overhaul, or a complete removal of the written rules.
The other problem for EOS is the lack of a trusted wallet - the Graymass wallet is being used right now, but small-scale EOS holders may still keep their tokens on exchanges, not trusting the stability of the technology. The founder of EOS, Dan Larimer, spoke of the possibility of overhauling the rules.
The price of EOS is not directly shaken by the negative news, and most coins remain locked in a limbo of either voting, or of users waiting to see what happens. The latest market downturn, however, took down EOS as well. The asset sank to $7.67, down by half since the days of the final auctions and the mainnet launch.
EOS trading has been subdued in the past day, with volumes below $700 million in 24 hours. The share of Tether (USDT) trading expanded again to more than 38%, but this time, the reason may be a trend to sell the assets and preserve value in USDT. Some predictions see EOS pressured down as low as $5.
The calls for a constitution overhaul come days after a total of 34 accounts were permanently or temporarily frozen, revealing that block producers have too much decision power over the network, even with the ECAF arbitration body helping the decisions.
Another factor may also affect the performance of the EOS network - RAM usage. RAM is provided by network participants, and paid for in EOS, hence it is a scarce resource. More than 51% of RAM has been reserved, in what is seen as an act of hoarding. No distributed apps are anywhere close to launching on EOS.
The ongoing problem with block producers also sees a strong cartel forming, where block producers have immense influence in voting in other block producers, and thus controlling a large share of the EOS network. It is uncertain if Bitfinex votes from its own holdings as a block producer, or those are votes of users who use the system to vote, but their tokens are on the Bitfinex wallet. Huobi and Binance may also have strong influence on the block producer distribution.