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The EOS community is displacing the original developer of the chain as part of a decentralized governance

On December 8th, the EOS community voted to stop making payments to its developer Block.one due to a lack of financial transparency and slow progress in the chain. In return, the EOS community, represented by the ENF (EOS Network Foundation), will continue to lead the EOS network as the world’s largest DAO.

What went wrong between the EOS community and the developer who built the chain?

What is EOS chain?

Launched in June 2018, EOS is a public chain that can run many applications and aims to become the Windows of the blockchain with one million transactions per second (TPS) to aid developers.

EOS initially raised $ 4.2 billion in funding, making it the highest in ICO history. After the mainnet went online, EOS saw explosive growth in the ecosystem. Analysts called EOS the main player in Blockchain 3.0 and even the “Ethereum killer”.

However, EOS is slowly going down after a short-lived boom. According to Footprint Analytics, the EOS chain’s TVL fell to 34th place among all public chains by December 21.

Footprint analysis: EOS Chain TVL

Additionally, EOS ‘ecosystem consists of DEX, credit, asset and yield projects, with DEXs dominating.

Footprint Analytics: EOS Chain TVL by categoryFootprint Analytics: EOS Chain TVL by category

Why is EOS in decline?

Most people blame Block.one, the developer of EOS, for the lackluster performance of the blockchain. According to many in the community, development work has been slow, of poor quality, and has failed to deliver on its original promises, including visions of cross-chain solutions, one million transactions per second, and more. With $ 4.2 billion in funding, EOS still lacks the ecosystem incentives that many expected. Compared to all the incentives and hackathons from current emerging chains, EOS was disappointing.

Although EOS uses a proof-of-stake (DPOS) consensus mechanism, many question its lack of decentralization as its supernodes are dominated by several large companies. Finally, [who] has criticized Block.one for a lack of financial transparency.

EOS Community rejects Block.one

On November 8, Block.one announced it was transferring 45 million EOS tokens to Helios, a new tool led by Brock Pierce to create venture capital funds, develop financial products at the institutional level, and build infrastructure for developers.

The tokens ready for sale do not belong to Block.one and the ENF (EOS Network Foundation, the community representative of EOS) vehemently rejects the sale. After more than a month of negotiations, they have finally decided that

  • Block.one has to give 45 million EOS to Helios, 30 million to ENF, 1 million to Pomelo, the EOS ecosystem funding platform, and 1 million to EdenOS, the governance system.
  • EOS-related IP, including community accounts and eos.io domain names, must be returned to the community.

However, while Block.one transferred 32 million EOS to ENF, Pomelo and EdenOS as promised, they did not return EOS-related IP to the community.

In response, ENF froze the EOS balance on Block.one’s account through a node vote, demanding that Block.one take its EOS holdings within one day and return the EOSIO IP to the community. At the same time, the EOS community decided to stop making payments to Block.one.

On December 20th, ENF CEO Yves La Rose tweeted to announce that the EOS community had decided to give up EOS-related intellectual property and plans to rebuild the EOS IP brand and code base.

EOS Network founder Daniel Larimer also spoke out in favor of this decision:

“Consensus means ‘voluntary association’ and the right to say ‘no’,” he wrote [where?]. “Separation sometimes means that one person leaves everyone voluntarily, and it also means that everyone leaves one person.”

“Declaration of Independence” from EOS

Since ENF broke off with Block.one, ENF published its funding plan on December 10th in order to create an open and transparent application system.

EOS founder Dan Larimer said a vision, roadmap and sales pitch are being developed to get started at EOS. EOS will soon be a DAO of DAOs, accounts will be free, and countless people will be rewarded for making contributions and inviting others to do the same.

EOS also announced its upgrade schedule.

This is the first time that EOS is running without Block.one.

summary

“Never underestimate the power of a small group of dedicated people to change the world. In fact, it’s the only thing that has ever existed. ”- Yves La Rose

The vote against Block.one is one of the first great examples of decentralized governance in action. With public chains popping up and DeFi and GameFi thriving, people can watch the EOS vote to see that decentralized governance can be more than just a buzzword.

This report was made available to you by Footprint Analytics.

What is footprint?

Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and gain insights. It cleans up and integrates on-chain data so users of all skill levels can quickly start looking for tokens, projects, and logs. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with footprint.

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