EOS Drama Continues As Heated Exchange With Block Producer Emerges

Avi Rosten

The ongoing drama surrounding the EOS platform’s controversial consensus mechanism took another interesting turn today - as a screenshot apparently showing a conversation with an EOS block producer (BP) has emerged.

Posted as an image on popular subreddit r/cryptocurrency, the screenshot shows a heated Telegram exchange between an EOS block producer, and another unidentified EOS participant - who chastises the BP for failing to freeze some accounts as directed by the EOS Core Arbitration Forum (ECAF):

eos chat.jpg

While the authenticity of the conversation has yet to be confirmed, the post has generated a stir on social media, with popular cypto figure Whalepanda chiming in on Twitter:

As recently covered on CryptoGlobe, this aspect of the EOS governance model has been highly controversial within the crypto community - as many critics have pointed out that the 21 block producers act in principle as a highly centralised concentration of power.

Despite the fact that EOS allows for BPs to be continuously elected, because of the enormous centralisation of the token’s holdings - the system effectively ensures that EOS whales exert a massively disproportionate influence over who is elected (as argued yesterday).

This latest revelation - if legitimate - again seems to underscore the problems associated with a system that places too much power in the hands of individuals.

Not only does it illustrate the problems of a protocol which might fail to punish bad actors, but it also points to a worryingly dystopian form of governance - where a kind of central committee issues diktats, backed up with threats of legal action.

While the future of one of the world’s largest cryptoassets remains unclear for now, it seems reasonable that token holders might start to question the platform’s organisation if instances such as this one continue to emerge.

Weekly Newsletter

Diar: Over $300 Million Now Staked on Cosmos, Only A Week After Launch

There are several new proof-of-stake (PoS)-based cryptocurrency platforms that are expected to launch this year, Diar Newsletter has noted.

Blockchain interoperability platform, Cosmos, which also uses PoS as its consensus mechanism, saw its mainnet go live recently. According to Diar’s estimates, “over 80% of the validator slots picked up with the network” and there’s now more than $300 million that has been staked on Cosmos’ blockchain platform.

More Than $430 Million Staked On Dash's Network

Notably, the total staked amount on the Cosmos network already places it in third position - with only Dash (DASH) and EOS having higher staked amounts. Currently, there are over $431 million staked on Dash’s mainnet while EOS, the world’s largest delegated proof-of-stake (DPoS)-based network, has over $1.8 billion currently staked on its platform, Diar’s data reveals.

The leading crypto newsletter service further notes that Cosmos’ initial coin offering (ICO), which was completed in 2017, managed to raise around $16 million. Last week, Cosmos released the first version of its software on its mainnet and already 40% of the platform’s native token, Atoms, have “been bonded to 82 of the 100 possible validators,” Diar’s post noted.

Cosmos' Stakeholders To Decide Whether To Activate Intercommunication Blockchain Protocol

As explained in Diar’s blog, the number of validators on Cosmos’ platform may “reach a maximum of 300” during a 10-year period, however the blockchain network’s management could also decide to increase the number of block producers within this timeframe. In the next phase of Cosmos’ ongoing development, its network stakeholders are expected to vote on how Atom-based transactions are to be conducted.

Additionally, Cosmos’ network participants are planning to reach consensus regarding whether to launch the platform’s Intercommunication Blockchain Protocol (IBC). This protocol has been created to facilitate communication between multiple different blockchain networks by first connecting to the Cosmos Hub.

More Than 70 Projects Now Using Proof-of-Stake 

In addition to Cosmos’ PoS-based network, there are more than 70 other blockchain-based projects that are presently using some form of PoS-based consensus to manage their respective networks. In total, Diar has estimated that there’s nearly $4 billion being staked by all PoS networks.

Some notable PoS networks expected to launch later this year include Charles Hoskinson’s highly anticipated Cardano (ADA) platform, IOST (based on “proof of believability,” a variation of PoS), Nebulas (a PoS-based network that will reportedly not require hard forks for management), Aion (a platform that can help separate and independent blockchains connect with each other), and Rchain (a network that aims to manage content at the scale of Facebook in a decentralized manner), and Phantasma (a “next-generation messaging protocol”).