EOS Is Trying To Build $200 Million Dollars Voting System
The EOS blockchain has an account with $35 million dollars worth of tokens. But nobody is able to touch it and the balance keeps growing constantly.
After 12 months of EOS as a live blockchain, the account known as eosio.saving, will be worth close to $192 million dollars if EOS is traded around $4.79.
This money is being saved in order to fund different activities beneficial for the EOS community. We are talking about building new tech features, conducting security audits or sponsoring meetups.
However, there is one big problem due to the fact that there is no system to allocate the funds that the account is currently saving.
One of the most important aspects about EOS was to establish a governance process, in order to avoid informal or ad hoc governance processes. The governance process would allow token holders to vote about the future of the network based on the tokens they held.
And a very important question that everyone is now having is what would happen with the eosio.saving account without a governance system. The governance process should include the ability for token holders to decide and vote in referendum according to the tokens they held.
Daniel Keyes, Co-Founder And COO Of EOS Nation, Commented:
“There was no referendum system built in at launch, so it’s up to us as a community to come together and build that.”
Keyes works as project manager of a team that is composed by different block producer candidates that is trying to build the new referendum system.
The group EOS Core WPS Working Group is developing a ‘worker proposal system’ or WPS. The working group has already published the back-end code for the WPS.
Some individuals would like to see the money used for the benefit of the community, while others want to burn or destroy the tokens currently held in that account.
The money that is accumulating in the account is funded by ‘inflation,’ a predictable increase in the supply of EOS tokens that has been stipulated. The supply of EOS tokens rises 5% every year and four-fifths of that increase goes to the account.
In a blog post, the working group said that one million EOS tokens can be transferred out of that saving account and found important projects for the EOS community. They specifically mention the EOS arbitration body, security tests and more.
Another proposal is to set up an emergency committee that would assess project proposals. The committee would be dissolved as soon as the emergency situation passes.
For EOS to live up to its expectations, it is necessary to create a referendum voting mechanism and allocate the savings to future projects. This is what Orchid Kim, part of the block producer candidate EOSYS and member of the working group, said.
“Bootstrapping any decentralized process is a complicated and daunting task. There are many things to build and fix,” concluded Kim.
However, some community members are against Kim, arguing that EOS should end with the WPS and the token inflation funding it. This is what Block-one CEO Brendan Blumer explained in July.
Blumer responded to a Twitter user that said that ‘even with the wonders of compounding,’ the 1 percent inflation might seem insufficient.
The user wanted block producers to go after the larger 4% inflation awarding WPS contracts to themselves.
The voting system that elects block producers is already in place. As the system takes into account one vote per token, many outside and inside the EOS community see accounts with important number of tokens as determining the outcomes of votes.
At the moment, there is a very big debate between the WPS and around the EOS constitution, since it is in ‘interim’ status. As there is no referendum mechanism available on EOS right now, the constitution will remain in this way at least for some more time.
“We’ve got this worker proposal fund collecting a million dollars a day that we can’t do anything with, we’ve got an interim constitution that people are eager to make changes to, so we want to get something to market as soon as possible,” commented Keyes.