EOS, the fifth largest cryptocurrency of the market is setting up a large and diverse group of norms in order to initiate a constitution for the token. The project has received a little bit of reluctance from the community and has become a very controversial move by the company very quickly. A great part of the EOS holders have been reacting to what the company has shown so far of their constitution to be, and as it seems, they are probably right in the way they are reacting.
EOS has specified that this is not the final version, and at the same time, that what they’ve shown to the moment is no more than a draft that needs to be approved by the whole EOS community in order to be applied. However, the reluctance is more than evident, even more, when one of the first rules of this constitution establishes that if it happens to exist a holder that doesn’t deploy movements of the tokens in a lapse of time of 3 years, then its funds may be selected to be put on auction.
You don’t have to move the tokens around. Vote for a new BP every once in awhile. If you leave your house abandoned for 10 years somebody will reclaim it. That being said this law will be ammended.
— MC (@TooLegitCrypto) June 15, 2018
Still, it’s early to determine whether or not this will be a positive thing for the company, but one thing’s for sure, many of the crypto holders are starting to have questions regarding this constitution and the ‘benefits’ or ‘disadvantages’ it may bring to them. Let’s see how it goes.
The relativity of the many statements of the document
The document has been created and stored on GitHub by two of the key staff members of the company, the Vice President of the Block.one, and the Chief Technical Officer (CTO) of the company, Daniel Larimer. In relation to the articles in it, the document starts with the following statement:
“This constitution is a multi-party contract entered into by the Members by virtue of their use of this blockchain.”
As a starting point, this article represents one of the biggest issues because of which many experts and crypto enthusiasts are concerned. It is very interesting for the whole community to understand what EOS try to say when it mentions “the Members” since as it is understood, this is something that should be defined and specified as is usually done with legal contracts, otherwise it would represent an ambiguity, and that may lead to a misuse of the instrument.
In the same way, another article that has been of concern is the number XIII, which reads as follow:
“This Constitution and its subordinate documents shall not be amended except by a vote of the Token Holders with no less than 15% vote participation among tokens and no fewer than 10% more Yes than No votes, sustained for 30 continuous days within a 120 day period.”
In this matter, let’s recall that as the crypto-related news portal, Bitcoinist, recently published on its website, at least a 50% of all of the EOS tokens in existence are held by 10 accounts only. This results in a very worrying thing because it means with only 10 addresses a fully constitutional decision can be made, changing the whole structure of the laws and shaping the way that holders need to interact with the coin.
Furthermore, another article on the document that is giving a lot to talk about is the number XVII which establishes:
“A Member is automatically released from all revocable obligations under this Constitution 3 years after the last transaction signed by that Member is incorporated into the blockchain. After 3 years of inactivity, an account may be put up for auction and the proceeds distributed to all Members by removing EXAMPLE from circulation.”
It can be read between the lines that what EOS is seeking with this particular article is to promote a bigger activity on its token holders. However, this represents an exclusion of those who decide to invest on the coin and keep the token in a long period of time, which is actually one of the most common actions when buying a crypto in the market.
Wow sounds like my last marriage. It lasted for about 3 years and I was left with nothing.
— Code coolly (@codejsgit) June 16, 2018
The same way, if a document is going to somehow emit a punishment for any action that a user may incur in, it should be defined and specified the terms of such punishment, and that’s exactly what the EOS constitution is lacking.
Although the document has not been confirmed as a version to be applied, still EOS needs to reconsider the elaboration of the document, and the same way, to consult the articles in a proper way with the community. If rumors were to be true and this would be the final document, EOS would be going through a path where it may significantly lose a large portion of their followers.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pxhere.com
Reasons Why You Are Much Safer When Crypto Trading on Dexes
While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.
During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.
Here are some reasons why you might want to consider doing the same.
1. True ownership of your coins
The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges…
Crypto Billionaire Predicts Massive Price Growth by 2021
Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.
Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.
He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.
However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…
TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level
Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world. Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon. This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs. One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos. TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.
Problems with Centralized Casinos
The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model. And online casinos are no different. It still needs to be said that centralized casinos have proven that there is a great demand for online gambling. The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative. But industries are continually evolving and this one is no different.
A few of the problems facing centralized casinos include the following:
- Little to no transparency
- Consumer lack of confidence
- Privacy concerns
- 48-72 hour wait time for withdrawals
These are four monumental issues that need to be addressed quickly given the global growth of the market. Casinos need to…
Why Binance May Be Crucial for Tron (Trx) to Reach $1
Why Tron (TRX) Price Won’t Remain Low for Long
3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance
Altcoins2 weeks ago
Top 4 Cryptocurrencies That You Won’t Find Among the 100 Largest Coins
Blogs2 weeks ago
Crypto Billionaire Predicts Massive Price Growth by 2021
Altcoins2 weeks ago
TRON (TRX) Blockchain Threatened by a Lone PC
Bitcoin2 weeks ago
Why Bitcoin (BTC) Will Go Back to $20,000
Altcoins1 week ago
Justin Sun Bullish On TRX and BTT
Altcoins2 weeks ago
Tron’s (Trx) Rapid Development Hints at the Project’s Full Potential
Featured news2 weeks ago
3 of The Most Shocking Cryptocurrency Scandals
Trade1 week ago
eToroX launches gold and silver stablecoins