The central theses
- A new debate about the share of B1 in the EOS token offer has arisen in the EOS community.
- The community-backed EOS Network Foundation (ENF) has raised concerns about the 45 million tokens that B1 controls.
- ENF CEO Yves La Rose said the community could try to remove B1’s vesting code.
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A group representing the EOS community wants to delete purchased tokens from Block.one, claiming the team has failed to deliver on its promises.
EOS Network Foundation goes to war against B1
The ongoing battle between the EOS Network Foundation and the founding team of the Block.one (B1) project has taken a new turn. There is now a heated debate in the EOS community about the non-forfeitable portion of B1 in the EOS token offer.
It has been reported that B1 CEO Brendan Blumer and co-founder Brock Pierce met with the EOS Network Foundation (ENF) to discuss a dispute over the EOS tokens acquired by B1.
At network genesis, B1 has allocated 10% of EOS’s total supply of 1 billion over a 10-year period. B1 currently has access to around 45 million tokens from a share of 100 million tokens.
B1, the development team behind EOS, raised $ 4 billion in an Initial Coin Offering (ICO) 2017-18 with the promise of creating a better, faster alternative to Ethereum. Later, EOS was unable to find an adequate adoption. When B1 technology leader Dan Larimer left the company, it was a severe blow to the network’s prospects of becoming an “Ethereum killer”. The token has since declined in terms of value and total market capitalization. After years of poor network growth and token performance, the EOS community and block producers (EOS network validators) decided to restart the project.
Under the leadership of Yves La Rose, a community-supported group EOS Network Foundation (ENF) was founded in August 2021 and a new roadmap for the EOS ecosystem was established. In an address to the EOS community, La Rose accused B1 executives of “negligence and fraud” and said the community plans to move the blockchain away from the centralized control of B1.
In November, B1 announced that it had signed an agreement to transfer ownership of the 45 million EOS tokens (valued at $ 196 million) to Helios, a company owned by B1’s co-founder Brock Pierce. In response, ENF expressed its disapproval, claiming that the tokens did not belong to B1 at all as it failed to adhere to its “social contract” in support of the network.
Commenting on the ongoing negotiations with B1, La Rose said the network consensus is that the tokens held by EOS do not belong to them. In a tweet he said:
“The core of the disagreement and the reason for the negotiations is that B1 believes that the (vested) tokens they sell belong to them, while the network, by consensus as it exists, believes the opposite, these tokens do not belong to B1 . “
Update from Yves on the negotiations with B1 #EOS pic.twitter.com/RGyu4sp3Y4
– EOS Bull (@EOSBull) November 15, 2021
La Rose went on to write that “the network could remove the vesting code, and the network believes it is within its right to do so.”
Unsurprisingly, B1 contradicts ENF’s claims. B1 co-founder Brock Pierce said the $ 45 million tokens will be used to grow the EOS ecosystem. On Twitter, Pierce said that B1 had many “plans in the pipeline,” including the possible introduction of an EOS-linked Exchange Traded Fund (ETF). On this Twitter thread, Pierce added:
“I do not think so EOS will benefit from authoritarian control over account balances that undermines property rights, and I think the ecosystem should focus on working together to be successful. “
The community does not seem to be convinced of B1’s stated financial motives. The idea did not resonate with many community members who apparently just want to get B1 out of the way. These members supported the idea of a takeover at the protocol level. “Just delete them. There is no good compromise for eos, ”wrote an anonymous member. Another member described B1 as a fraud and that it was “in breach of their publicly stated commitments”.
As a result, with community support, ENF can attempt to fork the EOS software code to change the original token assignment. Otherwise, it is still unclear how ENF can remove the token assignment from B1, unless it controls the smart contract that is used for the provision of Genesis tokens. Instead, it is more likely that the two sides will come to a mutually beneficial compromise before taking a drastic step.
Disclosure: At the time this feature was created, the author owned ETH, SOL, and other cryptocurrencies.
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