{"id":8161,"date":"2018-08-22T00:00:00","date_gmt":"2018-08-22T00:00:00","guid":{"rendered":"https:\/\/crypto-economy.com\/2018\/08\/22\/concerns-are-rising-in-eos-over-network-control-by-whales\/"},"modified":"2018-08-22T00:00:00","modified_gmt":"2018-08-22T00:00:00","slug":"concerns-are-rising-in-eos-over-network-control-by-whales","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/concerns-are-rising-in-eos-over-network-control-by-whales\/","title":{"rendered":"Concerns are Rising in EOS Over Network Control By Whales"},"content":{"rendered":"
The EOS network<\/a> <\/strong>has since its launch been trying to get its footings right especially regarding its governance structure. The community is worried about a privileged few taking control of the decision-making mechanism of the network. Indications show that community members are working to stall such scenario.<\/p>\n Concerned members have had a petition drawn up to limit the voting right of all stakeholders thereby reducing the influence of \u201cwhales\u201d due to the governance structure of the network<\/strong>. EOS uses delegated proof of stake (DPoS) in which stakes are proportional to the money invested. This gives wealthier investors stronger voice through having more voting rights.<\/p>\n The situation means that there is no limit to the number of votes that one entity controls and further loopholes in the system could be exploited to give leverage to the already influential whales.<\/p>\n According to the petition, \u201cCurrently, Bitfinex is voting between 10 million and 40 million EOS for up to 30 other BPs,<\/em>\u201d the\u00a0petition<\/a><\/strong>\u00a0reads.\u00a0\u201cThese votes go a LONG [sic] way to ensuring the recipients are among the Top 21.\u201d<\/em><\/p>\n The writer who said that he is not anti-Bitfinex said the exchange which constitutes between 50 and 90 percent of total block producers votes in the EOS ecosystem<\/strong> is just an example of the lopsidedness of the current governance structure.<\/p>\n The EOS voting system entails staking of tokens by the investors. The staked tokens empower them to elect nodes that will be responsible for the protection of the network. These block producers are the equivalent of the miners of the Bitcoin network.<\/p>\n