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EOS Showcases Proper Governance by Freezing 7 Accounts After MainNet Hiccup

The countries of Greece, Britain, the United States and several other nations, have forever been embattled in the claim that each is individually the oldest democracy in the world. If these countries cannot accept in a democratic manner, as to which is the oldest democracy, then it is easy to understand the current growing pains being experienced by the EOS (EOS) Community. The platform was launched less than a week ago on the 10th of June. Therefore, decentralization is not 100% functional.

With the launch of the platform came the delay in voting brought about by lack of reaching the 150 Million EOS tokens needed for staking. Eventually, the community managed to elect 21 block producers and the platform went live on the 14th of June. But two days later, the network would experience a freeze due to a software bug.

Block.one, the EOS creator, was then reported to be working on creating a patch for the bug. What then proceeded, is that the block producers held a conference call to discuss the problem and how to solve it without compromising the rest of the token holders.

The decision was then reached that the block producers would lock seven compromised accounts. These accounts could potentially allow ‘thieves’ to misappropriate funds on the platform due to the bug.

This action seemed like an overstep of their mandate and throwing decentralization out the window. But during difficult times, comes the need to make quick executive decisions. Block producers are meant to be executors of discussed and voted decisions, and not decisions makers. But given that the EOS constitution has not been ratified, it is within their powers to act as they did.

This scenario can be compared to the well thought out water landing of the US Airways Flight on the Hudson River by Captain Sullivan. He took control of the aircraft and acted to the best of his ability. So did the EOS block producers with respect to how they handled such ‘a young democracy’ on the blockchain.

EOS42 issued a statement on Steemit about the Block Producers decision to Freeze 7 EOS accounts. In the statement, the following was said acknowledging the difficult decision:

Given the time sensitive nature of this case, Block Producers debated this difficult decision for over two hours today on a call. On the one hand we could protect token holders, on the other this on the surface appears a dramatic overstep of our role in the constitution and BP agreement, which is to be the executor only of arbitration decisions, not to also be judge and jury.

However, the following was added to explain why the decision was reached to freeze the 7 accounts.

…our own conclusion is that if a ratified EOS constitution and arbitration was in place, then it would indeed be a fundamental overstep of Block Producers to do more than action arbitration decisions. However this is not currently the case, so the question was whether we would freeze the tokens on 7 accounts identified as already unlocking (meaning potential thieves could appropriate funds in under 24hrs), to subsequently enable ECAF when able to review and pass a ruling – and protect token holders to the best of our ability.

The Block Producers went ahead to eventually freeze the said 7 accounts. They also emphasized a need to ratify the said constitution because without an agreed ‘document’, democratic rulings during critical events will continue being a challenge. Up until the constitution is ratified, the block producers have the mandate to make tough executive decisions. This is an example of good governance by the 21 Block Producers.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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EOS Mainnet Freezes Barely Two Days After Launch – Blockchain Activities Come to a Standstill

Trouble With EOS Yet Again as Blockchain Grinds to a Halt

Reports have emerged that activities on the EOS blockchain have come to a standstill with frozen transactions network wide. This development is the latest in a growing list of technical issues that have affected the EOS blockchain. In a related event, ICON, another blockchain project also encountered a bug, this time in its smart contract code.

Bug Identified and Software Fix is in the Works.

According to a tweet by EOS, the development team was alerted to a bug which caused network-wide transaction freezing. As a result, the recently launched EOS mainnet has been paused. A few hours later, the development posted an update that the problem had been identified. Block.one, the creator of EOS is reportedly developing a software fix for the bug. Based on the details revealed so far, the problem was a bug in the code that controlled how deferred transactions were handled.

At the moment, the 21 Block Producers (BP) on the blockchain mainnet have reportedly created a means to “unfreeze” the blockchain, in preparation for the bug fix. The expected upgrade to the EOS software which includes the patch will be tagged 1.0.5. Once released, the 21 BPs will carry out an update of their nodes, syncing with one another, after which, the EOS blockchain will be accessible to the public.

The news of the bug and the freezing of the blockchain has caused the price of EOS tokens to tumble by five percent. The token price at the time of writing this article is 410.38.

Another Technical Deficiency of the EOS Blockchain

Technical issues and bugs seem to be a recurring decimal in the grand scheme of things as far as the EOS blockchain is concerned. After a protracted mainnet launch saga, the EOS mainnet finally went live on June 14. Before the launch, there were reports of numerous defects with the code. One researcher even managed to earn about $120k in a week from identifying software bugs on the platform.

Apart from the bug problem, there were also concerns over the apparent centralized nature of the project. Many decried the fact that a limited number of nodes seem to hold all the aces with some even going as far as saying the project wasn’t decentralized. EOS is presently the highest earning ICO project, having raised $4 billion in its token sale. It is the fifth-ranked cryptocurrency according to CoinMarketCap.

Today appears to be a day for bugs in the blockchain world. Reports surfaced earlier in the day of a bug in the ICON smart contract which allowed anyone to disable token transfer transactions on the blockchain. The bug, an error in a modifier code fragmented was also identified in the YEED ICO project.

Is the latest setback another indication that there are severe problems with the project? Will this blockchain freeze adversely impact the credibility of the cryptocurrency? Keep the conversation going in the comment section below.

Image courtesy of Twitter (@EOSauthority) and CoinMarketCap.

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EOS MainNet Launch In Limbo as Voting on The Platform Proceeds At A Slow Pace

How many EOS tokens are needed to activate the EOS MainNet platform? The number comes to 15% of the total token supply. The EOS platform was designed in a way that this number of tokens have to be staked so as to vote on block producer candidates. Staking tokens allows EOS token holders to vote for up to 30 block producers. The votes are in turn weighted by how many tokens are staked.

The EOS MainNet was technically launched on the 10th of June and 8 days after EOSIO v1.0 was released by Block.one. However, the 15% of tokens needed for staking has not been achieved. This number translates to 150 Million tokens. As of now, and through EOSAuthority.com, the number of staked tokens has reached 66.115 Million. This translates to 6.611% of the total supply and 44% of the number needed for staking.

There is some progress though. For according to a report only yesterday, the staked tokens had reached 48.119 Million. Therefore, there has been an increment of 18 Million in a day. If this increment persists, the needed percentage for staking, will be reached in less than 5 days.

Several theories have been put forth to explain the reluctance by users to stake their coins for voting. The first one being that the process is a bit complication with users fearing accidentally exposing their private keys in the process. There is a youtube video from the same website of EOSAuthority.com, that explains the entire procedure for any EOS holder willing to stake their tokens and is unsure of the procedure.

A second reason as to why the required number has not been reached, is the psychology behind waiting for others to first do something for more to join in. Vahid Toosi of EOS SW/Eden, believes that when the tokens pass the 40 million mark, more users will feel comfortable and the tokens will come flooding in.

A third theory is that the EOS Whales (those with a high number of tokens) are waiting for other whales to vote so they have a clearer picture of the effects of their own voting.

All in all it is a waiting game. Once you stake your EOS tokens, they are locked till the needed 15% is achieved. When this number is reached, the chain is considered as valid and normal functions are activated.