The EOS blockchain protocol had infuriated the decentralization proponents for a second time. The reason being, EOS officially sanctioned Block Producers (BPs), Starteos which might have publicly promoted its token holder’s financial rewards to appreciate their votes.
It is to be noted that the vote-purchasing schemes clashes with the previous malicious scandals which disrepute EOS directly. Launched in June this year, as open-source software, EOS is blockchain-powered smart contracts protocol meant for the promotion, hosting and execution of decentralised applications (DApps). It was developed by block.one, a Cayman Islands-registered startup, lead efficiently by Daniel Latimer and Brendan Blumer.
Starteos is a Chengdu-based startup. This particular blockchain has been said to enter the blockchain industry back in 2013. The self-titled digital wallet and ‘Memory Box’, a one-tap enabled cold-storage wallet had been launched by Starteos. It is said to be the fourth-largest BP as per the eosnetworkmonitor data. This, of course, means that it bags a large amount the collected BP revenue.
Starteos published a post which they titled, ” We Gonna Share BP Proceeds With You- This is the Way We warm You Up in This ‘Winter’!” The team further added: “after delegating Starteos.io as a proxy, you could get continuous and stable EOS revenue.”
“The Winter cryptocurrencies have come. How much faith do you leave to have [sic]? Now, Starteos is still gonna stay with YOU, our most important and best friends! And we [are] gonna share the proceeds with you and make [it] through the difficulties together.”
Starteos also gave a detailed instruction on how to claim the benefits efficiently. Firstly, one has to select Starteos as a proxy. On successful selection of Starteos as a proxy, one has to pick “stable income”, ” mining” revenue mode or the “random revenue” mode, gear up to play the game with the aid of game tokens called “Lucky Fruit Slots Machine” to get hold of “EOS revenue.”
The steps towards the vote-buying by EOS administrations contradicts decentralised and democratic blockchain policies which also seems to go against original white paper. Daniel Latimer, co-founder and chief technology officer wrote immediately after EOS mainnet went live:
“EOS is fundamentally different from other governments and blockchain communities is that it’s community wishes to operate at the highest possible ethical standard of voluntary consent and non-violence.”
In fact, to be specific, Starteos’ winter promotional campaign seems to violate Article IV of the current EOS constitution titled “No More Buying.”
“No member shall offer nor accept anything of value in exchange for a vote of any type, nor shall any Member unduly influence the vote of another.”
Weeks before Starteos had actually published a Medium post which explains how to claim some of their revenues, it has been pointed out by EOS investor Maple Leaf Capital that Starteos was about to launch a slot machine DApp, where users would be able to set Starteos as a voting proxy to obtain in-game tokens. The original article claims that the rewards of the gamers would come from gamers.eos’s BP reward directly without involving a third party.
“It may not be bad-intentioned, but it looks awfully close to transfering block-producing reward value to its voters, with a thin veil of glamification and probability attached to it. This could set a bad precedence and deserves some debate.”
The investor refused to vote for Starteos any further, saying that “swapping block reward for votes in gaming form is detrimental to the long-term economic value for the EOS.”
On the other hand, Steemit user theawakenment emphasizes on the fact that games.eos holds a paid position, being ranked at the 66th position (game.eos has been successful in mounting up to position 50). He scripted an open letter to EOS investors after contracting the Starteos administration and did not receive a response from them. He stated:
“If other BPs copy what Starteos is doing and launching a second or third BP themselves, we will soon end up with the large BPs being owned and run by the same handful of owners.”
Starteos had finally reply him saying:
“[They] admitted to creating the games.eos account which does not match up with what they have stated on their website.”
Refraining from pinpointing Starteos directly some of the BPs have expressed their views on vote buying. EOS New York wrote:
“The EOS constitution is simply not good enough and we deserve a clear document that outlines our basic system of governance.”
On being further queried whether the document features any restrictions on vote buying, EOS New York replied:
“There are not. We have it now and we have BPs violating it. No point.”
Whoever it is to be blamed, the EOS vote-buying scandal had prompted a massive price drop for EOS. Clubbed with the current crypto market situation which is collapsed EOS knows not how far the stairs of success are. It is currently trading at $1,812,419,450, priced at $2.00.
One of the BP, Bulgaria-based EOS Titan had unvoted Strateos, which however could not move it from acquiring the third and the forth position.