Connect with us

Blogs

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

Published

on

EOS

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.

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

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

Published

on

Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

Continue Reading

Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

Published

on

2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

Continue Reading

Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

Published

on

Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

Continue Reading

Press Release