Community Takes Over Parent Company for the First Time! Chaos at Block.one Temporarily Settles, EOS Community: Give Another Chance

Block.one, the developer of EOS, has temporarily settled disputes with the community by reaching a compromise. Both parties have agreed to step back, with the EOS network ceasing to allocate the initial 10% of total circulating tokens to Block.one. While Block.one is unwilling to relinquish the EOS.IO domain name, they will continue to support the development of the EOS network in the future.

EOS

EOS raised about $4.1 billion through an ICO in 2018, setting a record as the highest in ICO history. After the mainnet launch, its activity in the DApps field was even able to compete with Ethereum, once seen as a top-tier public chain that could potentially challenge Ethereum.

However, due to the prolonged bear market after its launch, EOS still has flaws in its fee mechanism and scalability. With the subsequent entry of the crypto market into the era of major public chains, continuously iterating and innovating public chain projects, EOS has now fallen to 51st place in terms of market value.

Block.one's Commitments

Yves La Rose, CEO of the EOS Network Foundation (ENF), summarized the events in a recent statement, accusing Block.one of the following:

Slow Development

Over the past year, the development progress by Block.one has been slow and of low quality. Reasons include the departure of technical lead Daniel Larimer, the launch of the Bullish exchange by Block.one, and the transfer of many advanced developers to Bullish.

Unfulfilled Promises

According to the initial agreement, Block.one would receive 100 million EOS tokens within 10 years of the mainnet launch, approximately 10% of the total supply. This means Block.one would receive about 27,400 EOS tokens per day, equivalent to the total daily rewards of 60 super nodes.

However, despite funds being used for ecosystem development, unfulfilled promises by Block.one include:

• No implementation of any type of cross-chain solution
• No achievement of a million transactions per second
• No accomplishment of the goal of one thousand DApps
• Voice and Bullish have not operated on EOS

Unauthorized Asset Transfers

Community dissatisfaction with Block.one erupted in November this year. In a press release, Block.one stated:

We have been thinking for the past three years about how to use our holdings of EOS tokens to bring growth to the EOS network. Eventually, we agreed to sell 45 million EOS to Helios. Helios will create an EOS venture fund, build institutional-grade EOS financial products, and support developers in building infrastructure.

The issue is that of the 45 million tokens, Block.one currently only holds about 8 million tokens, with the remaining 37 million tokens to be distributed over the next seven years, equivalent to the unauthorized transfer of assets not held. ENF also began negotiations with Block.one in early November.

Compromises from Both Sides

ENF and Block.one have engaged in multiple negotiations since November, as follows:

1. 11/10: Super node BPs believe that Block.one still has the most influence on the market and hope to use the initial $4.1 billion raised from the ICO to inject capital into EOS for ecosystem development, network growth, etc., but each time they were rejected by Block.one.

2. 11/24: ENF requested Block.one to relinquish the EOSIO domain name and 30 million EOS, but Block.one had already transferred ownership of the domain name to the exchange Bullish.

3. 11/30: The top 30 BPs agreed that by 12/7, Block.one must publicly agree to stop receiving EOS tokens and deploy a multi-signature proposal.

4. 12/5: Block.one agreed to grant the tokens, but did not mention the EOSIO domain name.

5. 12/8: BPs officially executed the multi-signature proposal.

Another Chance

ENF emphasizes that the community simply wants to correct Block.one's attempt to transfer 45 million EOS, and hopes that Block.one can fulfill its commitments with good intentions. The EOS tokens belonging to Block.one have not been confiscated, but no further 10% tokens from the initial agreement will be sent to Block.one in the future.

However, this does not mean that Block.one is no longer responsible for EOS. They still hold all the funds raised from the ICO and approximately 32 million EOS from the early 10% token allocation, and must continue to fulfill the commitments made before and after the ICO.

ENF points out that the EOSIO domain name belongs to a private for-profit entity and not to the community. This point has not yet reached a consensus, but the community is willing to give Block.one another chance for atonement, hoping to become fellow travelers in a spirit of mutual respect and unity.