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EOS Worst-case Scenario Taking Shape

One of the small businesses that helped set up the EOS blockchain has decided to part ways in early September.

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One of the small businesses that helped set up the EOS blockchain has decided to part ways in early September.

The EOS Tribe, who played a major role in launching the first EOS chain, announced on Steemit that it would abandon EOS as a block producer (BP) candidate. It will focus on other blockchain applications of the EOSIO software.


Eugene Luzgin, EOS Tribe’s founder, said in a post that the EOS tribe has never been part of any of the vote trading. It remained true to their principles. He also believes that leaving EOS as a former block producer can benefit others by revealing the truth that can warn them.

The main reason Luzgin left was that it was impossible to secure the funds to sustain the blockchain without the backing of EOS’ giant whales. Giant whales is a term for people with large holdings of tokens.

EOS Whales strongly supports block producers in China. At any given time, 21 business partners reach consensus on the chain. Moreover to make corporate governance decisions, and generate fundamental revenue.

From an investigation done by CoinDesk, it has come out that it has been the universal point of distress amongst those who have been participating for a long time in the EOS community. Centralization and threatened censorship resistance have been included as part of the concerns.

Luzgin believes that the BPs who have the most powerful technical proficiency have been strongly downgraded. This is to lower-tier rewards or even with no rewards at all.

 EOS convincingly a brain-drain now

A lot of people empathize with his concerns. Even though it might be easy to dismiss the complaints of those who doubt him as a simple East-West-divide-two EOS electorates that are worlds apart. Therefore, failing to come up with an agreement about the protocol.

There is still no absolute indication that the current arrangement of BPs is bad for the $3.8 billion blockchain. However, there is a huge pile of proof reinforcing the case for concern.

With the departure of the EOS tribe, a BP candidate, Aaron Cox of Greymass, said that he couldn’t help but think that it might be the new trend. The downward spiral, which is just a race to the bottom, isn’t a good situation to be in. Rent seekers continue to take over. Most are cut of as it continues and it is dreadful.

A lot of BPs that were ever so frequently seen in the top 21 no longer qualify for rewards as standby BPs. This includes BPs like EOSSphere, ShEOS, EOSAmsterdam, EOS Detroit, EOS Dublin, and EOS Venezuela.

It may be possible that EOS is fine. However, it is also possible that it is in great trouble. However, it is worth of casual investors knowing that a small group of investors growing distressed. These casual investors are those who have supported the company since the early days.

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Tanya Smith is an editor at iBaseTrading. With M.A. in Journalism and Mass Communication, she is pursuing her dream of creating a positive difference in the media industry. She also enjoys Fashion and Travelling.