EOS network launched its EIDOS token contract on October 31, 2019, and also announced an airdrop for the same where users with at least 0.0001 EOS in their wallet can participate in the airdrop. A user needed to send a minimum amount of 0.0001 EOS from their wallet to the EIDOS contract, and then the contract would refund the same amount back to the sender's wallet along with a some EIDOS tokens as well.
The airdrop gained quite a popularity in no time, with over 95% of the transactions on the EOS network being done to the EIDOS contract. The increased transaction activity sent the EOS network into congestion mode where a comparatively less number of transactions are processed on the network. EOS users are required to buy computational power in order to get their transaction processed and thus users who were aware of the airdrop started buying computational power in advance.
As soon as the EIDOS airdrop went live, Coinbase recorded a decline in transaction activity for EOS on its platform on November 1st. They added additional computational power to unlock more transactions but later realized that most of the transactions on their platform were being done towards the EIDOS contract.
In general mode, the computational power used by the network for processing a transaction is 40 ms but in congestion mode that value has spiked significantly because of the demand.
As per the blog,
“The amount of staked EOS required for an ms of CPU (called “CPU price”) spiked drastically. Over the course of 4 hours, the CPU price increased by ~100,000%.”
The Reason behind such a Frenzy for the EIDOS Token
Right after the launch of the EIDOS token, several exchanges listed the new token on their respective exchanges against several trading pairs. One of them being EIDOS/USDT, which meant users can trade their airdropped EIDOS for USDT, which is technically free money.
There were several accounts which followed a similar pattern in order to aggregate as much of the airdropped EIDOS as they can. These accounts usually started with renting bulk CPU power from the network and used all of the CPU only for the EIDOS contract.
The EOS network even after more than a week is in congestion mode and the airdrop will continue for the next 15 months. The congestion would only restore to normalcy if the cost of buying the CPU power outweighs the EIDOS price.