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EOS constitution project may expel inactive (long-term) token holders

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EOS
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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.

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.

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.

Conclusion

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.

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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.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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coins
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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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