EOSIO Needs ICOs and more Projects Built on it

EOSIO Needs ICOs and more Projects Built on it

EOS and ICOs

There is no blockchain system that is 100 percent perfect. Yes, we may talk of Bitcoin and how they have the endorsement from the SEC but still, there is a tad bit of centralization. Worse still, the network is known to lag with low throughput and problems implementing scalability solutions. Improvements cannot be made and implemented on time because there is no figurehead.

On the other side of the divide, we have EOSIO with Dan Larimer led Block One compromising on some aspects as consensus for the sake of throughput and scalability which as all know plagued most blockchains during the super bull rally of 2017.

Herein lies the problem: That of stamping our centralization and possible corruption/collusion of which EOS block producers have been accused of.

EOSIO Block Producer Corruption

Remember back in September, unconfirmed reports began doing rounds that South Korea based Huobi were involved in vote-buying and outright bribery. Both are illegal in the EOS constitution. There, it is clear that when block producers collude or are involved in any malpractice as mutual voting then sufficient evidence could result in an expulsion from the block producer candidature list.

Nevertheless, these incriminating reports were unconfirmed and there was nothing much the community could do but criticize with some pointing hands on whether the network would be viable in the long run with questions boiling over their ability to be accountable, corruption-free and front the needs of the community that make it whole. Still, it is utopian to hope for complete integrity or accountability until after we have fitting check and balances.

For that to happen, the EOS network should first evolve and fit countermeasures that eradicate cartels from influencing the network through mutual voting and corruption. This is hard considering how the network is dominated by whales holding more EOS tokens for staking, voting, and influence.

Check out the genesis snapshot rich list and see the skewed EOS ownership distribution excluding Block One who hold 10 percent of the total EOS in circulation:

The Top 10 (excluding B1) holds 396,735,539 Tokens (or 39.67% of the total tokens)

The Top 100 (excluding B1) holds 648,176,831 Tokens (or 64.82% of the total tokens)

The Top 1000 (excluding B1) holds 758,120,383 Tokens (or 75.81% of the total tokens)

The remaining #1001 – #163,930 accounts hold 138,570,296 (or 13.86% of the total tokens)

And finally, the overview of the total distribution looks like this:

Block One has 100,000,000 tokens (10%)

The Top 2 – 1000 richest holders have 758,120,383 tokens (75.81%)

The remaining 1001 – 163,930 richest holders have 138,570,296 tokens (13.86%)

There’s still 3,309,321 tokens left unregistered (0.33%)

Grand Total: 1,000,000,000 EOS Tokens (100%)

How ICOs can tame corruption or Mutual Voting

To counter propensity of vote-buying, corruption and other illegalities within the EOS network, it is important for projects to build on it. Through initial coin offerings, well-meaning projects would own a majority of EOS like what happened in Ethereum last year.

But because EOSIO employs the dPoS system with coin holders involved in voting selecting Block Producers, these projects that directly depend on the long-term viability, accountability, and integrity of the network would be voting in actors who seek to promote a robust network that truly embodies blockchain philosophies as transparency and community.

These projects will be the guardians of small EOS owners who have no power to compete against whales—who are mostly exchanges—and are the much-needed check and balances in the system.

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