EOS Blockchain Controversies and Struggles Continue to Pile Up, What’s Next

As Controversies Surround EOS, Telos Set to Replace It

“I'm a really big believer in the potential of EOS and of EOSIO software, and I came to believe that it was on a bad path.”, said Douglas Horn who recently authored a white paper for Telos, a fork of the open-source protocol behind EOS called EOSIO.

There have been many controversies surrounding EOS. First came the stop-and-go launch, followed by controversy over locked accounts – then more locked accounts, this time on the orders of an “arbitrator” that many in the community hadn't realized existed. Next came a fake order purporting to be from the arbitrator, the fallout from which led EOS architect Dan Larimer to propose a whole new governance structure or “constitution.”

EOS believers are looking for stable alternatives. Telos hopes to give them one.

Telos Cuts Out The Influence Of Whales

The first thing that stands out about Telos is the decision to cap the number of tokens any one address receives during the initial distribution at 40,000 (with certain exceptions). The idea is to remove whales from the equation – primarily because on EOS, tokens equal votes, and right now, there's a “hyper-concentration of voting power” in the hands of just a few, according to Horn.

To reduce the influence of these heavyweights, Telos will distribute its TLOS tokens to EOS investors according to the original “snapshot,” but with one big difference: it will lop off any holdings above 40,000, a move that Horn said would affect just 0.63 percent of accounts.

1.6 percent of EOS holders own 90 percent of the tokens. The largest holder by far, with 10 percent of the total supply, is Block.One, the company behind the EOSIO protocol.

Horn expects Telos to eliminate the chance that token holders collude with BP candidates, who can currently earn the equivalent of thousands of dollars a day in EOS coins and might share those profits with the whales that elected them.

Telos Is Ready And On-Chain

One of the main priority for Horn is to be ready by launch. For Horn, it's also important that all of these governance mechanisms, to the extent it's technically possible, happen on the blockchain, rather than on Twitter or in Telegram groups, where misinformation – such as the fake arbitration order – can easily circulate. Telos aims to increase network reliability and security by automatically kicking unresponsive or noncompliant block producers out of the top 21 slots, without waiting for a human arbitrator to weigh in.

Telos arbitrators, for example, will be elected in a similar manner to block producers. This wasn't the case with the EOS launch, where arbitrators were selected through opaque off-chain processes.

Final Take

Despite his criticisms of EOS, Horn stressed that EOSIO is a “worthwhile” project, and acknowledged that he and others now building Telos were themselves involved in the EOS launch.

Although there are alternatives like EOS Force, ONO, WAX, and Worbli, Telos appears to be the fork with the most momentum and support. For instance, several of its team members were involved in the EOS launch, and in more than one case, those people are helping build Telos while continuing to support the EOS network.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide