EOS - EOS community blocks ongoing $250M funding to Block.one
The EOS community is severing its ties with Block.one after the firm announced that it would halt payments to Block.one. Block.one is the company behind the development of the EOS network.
The EOS community noted that Block.one was no longer working for the network’s interest. Hence, the issuance of 67 million EOS ( EOS/USD ) tokens worth around $250 million has been halted . This amount was to be distributed to Block.one over the next six to seven years.
Block.one is no longer for EOS
Yves La Rose, the leader of the EOS Network Foundation, has noted that,
Through a super majority consensus, the EOS network has taken its future in its own hands by voting to fire Block.one and stop vesting tokens to them. This begins a new era for EOS and highlights the power of the blockchain to enable a community to stand up against corporate interests that don’t align with theirs.
The software for the EOS blockchain was released in June 2018 by Block.one. It was released through a $4 billion ICO. The EOS network operates through a proof-of-stake consensus, and it operates with the support of the top 21 block producers that have control over the entire network.
As a reward for supporting the EOS blockchain, Block.one was to be compensated with 100 million EOS tokens valued at $376 million. This is equivalent to around 10% of the entire token supply, and the amount was to be distributed over the next decade.
However, Block.one has failed to meet the expectations of the EOS community, as it has failed to provide any use cases for the network.
Block.one announced the launch of a social media company known as Voice, but the network was not to run on EOS. It later announced plans to launch a DEX known as Bullish, but this was also not to run on EOS.
In August this year, a group was selected involving the existing EOS members and Block.one. La Rose was appointed the leader of this group. However, he later stated that EOS was let down by Block.one.
“What we are experiencing is a shift whereby the EOS community is placing itself in a position to be able to move away from Block.one essentially forking them out,” he stated.
An EOS and Block.one breakup could take long
After La Rose’s announcement, Block.one stated that it had given 45 million EOS tokens to Helios to help the EOS community.
In recent months dialogue has been taking place between the two networks. The objective was to allow the EOS community to gain the intellectual property to the EOS network.
The EOS Foundation stated that the main issue was that the EOS intellectual property was on Bullish’s balance sheet, and it would require Block.one to buy it from the DEX. This was a major hindrance.
In a press release, Block.one stated that it would grant 30 million EOS from the tokens it was supposed to receive from the foundation. However, it did not detail how these tokens would be handed out. This plan did not sit well with the EOS community hence they have halted payments to Block.one.
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