EOS Community Stops Payments Worth $250 million in EOS to BlockOne
The EOS community decided to stop ongoing payments worth around $250 million as the negotiations between the ENF and BlockOne have not been successful.
Last month, EOS community voted to halt ongoing payments to BlockOne – the company behind the project. After continuous debates within the community over the reliability of BlockOne, the community made the decision saying that BlockOne has ruined the network with centralization.
The on-going situation between the EOS Network Foundation (ENF) and BlockOne has been boiling up in the last couple of weeks. The ENF said that BlockOne has been drifting away from the network’s interests and failing to deliver on promises.
The decline in network activity caused serious harm to the EOS token, which has been one of the worst-performing assets in 2021, sliding down from the 7th spot in the crypto market to the 51st position, where it currently sits.
The community decided to block the transaction of 67 million EOS – $250 million – that was set to be distributed over the next five years. This affects not only the BlockOne team but also Brock Pierce, co-founder of BlockOne, and also the stablecoin Tether (USDT).
Yves La Rose, founder of ENF, tweeted:
“Through a super majority consensus, the EOS network has taken its future in its own hands by voting to fire Block.one and stop vesting tokens to them. This begins a new era for EOS and highlights the power of the blockchain to enable a community to stand up against corporate interests that don’t align with theirs.”
Through a super majority consensus, the EOS network has taken its future in its own hands. This begins a new era for #EOS and highlights the power of the blockchain to enable a community to stand up against corporate interests that don’t align with theirs. https://t.co/8l62MBG67C
La Rose has been vocal that EOS can’t rely on BlockOne anymore, saying that the company fails to keep up with its promises and lacks support for the network. La Rose said:
“EOS is Block.one, Block.one is fraudulent; therefore, EOS is fraudulent.”
The separation between both parties came sooner than later as the community strongly believes a new entity is better suited to run the EOS network from now on.
On November 15, after negotiations between the ENF and BlockOne failed, the community was concerned about BlockOne’s shares in the EOS ecosystem, to the point that they wanted to delete 45 million vested tokens held by the firm.
La Rose said:
“The network could remove the vesting code, and the network believes it is within their rights to do so.”
The 45 million EOS tokens, around $210 million in that time, was BlockOne’s attempt to revive the EOS network. The firm agreed to transfer the 45M EOS to Helium, a decentralized protocol for Internet of Things (IoT) devices.
However, this move wasn’t well-perceived by the EOS community. La Rose added that BlockOne cares more about its own interest rather than contributing anything meaningful to the EOS network.
