Great news coming from Block.one last week in a statement claiming that they would soon ‘begin voting for EOS public blockchain upgrades, in other words, start voting for Block Producers. This is a much welcomed effort from Block.one, especially during a time where there’s persisting claims that some of the BPs have been manipulating the integrity of our voting process. Block.one have previously signaled their intention to vote but had to delay until they had a smaller stake of the total circulating tokens. This was to avoid having too much power in deciding who gets voted in/out which would’ve raised suspicions of a monopoly or dictatorship i.e centralization.
Now that they hold only 9.5% of the total circulating EOS tokens it makes sense for them to partake in the blockchain’s governance of which they’re heavily invested, in more ways than just financially. In fact, it is their responsibility to do so for the advancement of their company, but more importantly the well-being of the chain itself. This decision is obviously a positive one for all EOS stakeholders and one that reinforces trust in its governance.
But how exactly does this decision affect governance, holders, and the EOS community at large? These are important questions to ask and hopefully one’s that’ll become clearer once Block.one is actively voting. In case you haven’t read their statement update please check it out to gain some insight on their reasons for voting – Voting Statement.
With this article however, I would like to present how this is likely to affect us as a community and regular EOS token holders. After all EOS is a community driven blockchain and this point of view will look to reflect that. To write this article I had to ask myself what possible benefits are there for the regular EOS holder? And I’ve come up with quite a few!
Let’s dive into them.
Benefits of having Block.one as a voter
First and foremost this will hopefully create a better, more frequent channel of communication between Block.one and the community. Up until now we’ve pretty much depended on Brendan and Dan for updates on what is happening at Block.one. Perhaps now they’ll be a dedicated division of the company that focuses solely on governance issues and communicates those with us – the community. Although this is unlikely to give us any further insight into the daily workings at Block.one, it would at least open up a new door to see their thoughts and intentions on governance. Giving more time for Brendan and Dan to focus more on other stuff other than PR, as much as we love hearing from them.
Secondly, unlike Block Producers, big entities or anyone with a large enough amount of resources most of us don’t have that much manpower to do in-depth research on each individual Block Producer. We’ve had to rely on proxies mostly to vote on our behalf and hoped they held our and EOS’ best interests when picking BPs. That’s where Block.one will play an important role as they have greater manpower and more resources to really look into each Block Producer to see what value they provide the network. This would also help in ensuring that no single entity/individual runs multiple BPs.
Besides the benefit for a quality research of BPs, Block.one also understands the vision for EOSIO. Well, they created the vision. Thus whom better than Block.one can help direct the blockchain towards its envisioned future? We know that some BPs and some proxies have a tendency to put too much emphasis on the rewards rather than on the long term success of EOS. The same goes for individual voters by the way.
It is very comforting knowing that a responsible and highly capable entity will be voting for the best interests of the chain. Hopefully this will encourage BPs, especially from the East, to engage more with the EOS community at large as they try to prove their worthiness to be in the top 21. Also to have their efforts brought to light for the non-Asian community to interpret. Block.one has offices in Hong Kong which should help bridge the gap between the East and the West. Effective communication between these two sides of the globe will go a long way in connecting and strengthening the community. As a result I suspect Block.one will probably have sort of a proxy effect as many users will surely look to mirror their voting decisions because they trust its judgement.
Another benefit that may be overlooked is that as Block.one votes it might stake its 9.5% of EOS tokens into the Resource Exchange (REX) which would create more liquidity for REX loans helping avoid future liquidity crisis. Of course more EOS available on REX will mean that loans become a bit cheaper to be rented out by developers who need affordable resources to build applications. DApps will also be able to cover CPU costs on behalf of their users for much cheaper resulting in a healthier ecosystem ahead of the EOSIO 2.0 upgrade. I guess what I’m trying to point out here is that Block.one’s involvement is frikking good for EOS!
The biggest obstacle that prevented Block.one from voting in the first place has been cleared. That was the obstacle of having a great supply of the total EOS tokens in circulation as this would mean they have too much power on voting outcomes. With only 9.5% of EOS tokens they do not have the power to single-handedly vote in any BP into the top 21. Although with the respect and influence they have in the community we might see people following their votes. Not much of a negative really but still enough to give them additional voting power. There hasn’t been word yet on whether they’ll run a proxy or not. We’ll have to wait and see.
I had to think long and hard about this one. Since Block.one publishes proposals for the improvement of the blockchain would it be unethical if they only voted for BPs who support their proposals? I guess it would seem a bit like a dictatorship if they did that. That would basically be like saying ‘approve our proposal or else we vote you out’. I highly doubt that this will be the case at all but worth keeping in mind in case they start abusing their power/influence. Everyone has a right to their opinions and because they may differ it doesn’t mean their value as a quality BP is diminished. That’s the reason why there’s 21 BPs so that all the different opinions/proposals can be heard.
I can’t think of any negatives stemming from Block.one’s vote participation. Everything else I can think of seems a bit too extreme and wouldn’t be in alignment with the Block.one we’ve come to love and respect. That doesn’t mean haters and FUDsters will stop trying to come up with any reason as to why Block.one’s involvement is bad. There’s probably a couple of such theories floating around social media already, try not to entertain them. We know what’s up.
That’s why it was so important for Block.one to have a smaller voting stake so that the decisions it does decide to take do not have so much power that they overwhelm the entire community. They have just enough of a say to make a difference but not enough to affect the rankings of the top 21. We as the community have a bigger voice when it comes to the governance of EOS and enough power to sway decisions one way or the other.
A testament to this being the great efforts made by the ColinTCrypto proxy on multiple occasions in the past. This proxy is powered by individual users who’ve transferred their voting rights to it and it’s currently the largest proxy with over 10 Million EOS behind it. Together with the users the proxy has managed to vote out idle BPs and expose bad actors as well. However big an impact Block.one will have on governance it adds to a list of trustworthy syndicates, making it harder for bad actors on the network to exist without detection.
I think we can all agree that this is awesome news and couldn’t have come at a better time. With all that’s going on with the network, with regards to EIDOS and the inability to rent CPU, the additional 9.5% of EOS tokens to REX would be appreciated by all types of users. The services that Block.one will provide on our behalf with regards to voting for quality BPs will be unmatched. Therefore, I look forward to a healthier and just that tiny bit happier EOS blockchain.
It seems Christmas will come early this year, ahead of what is set to be a bullish 2020 for EOS. Block.one to vote for BPs, EOSIO 2.0 launching soon, ah and let’s not forget about Voice which can come out any time now. These three things may all be connected and scheduled to launch around the same time. If not by the end of this year then definitely within the first quarter of 2020. I’m not one for speculation but next year seems poised to be the best year to date for EOS. How can one not get excited just thinking about it?! Before I go off the rails here let me conclude by saying EOS to the moon baby!
To deliver quality content it’s become a responsibility for me to research most of what I write about to ensure that it is as accurate as possible. It is a taxing responsibility at times, but a great blessing and a necessary one as I wouldn’t have as much an incentive to do so otherwise. Thus I understand that most people reading this also don’t have much time nor the resources to do their own research. Most people have jobs or other activities to be busy with research on EOS, not to mention there are other blockchains they might be trying to keep up with as well. That’s why I write these articles; to provide value to you because I know how hard it is to follow everything happening with this fast paced technology. Made even more difficult by the daily misinformation out there.
There are plenty of quality sources for EOS information, to many to mention really. I hope that you add EOSwriter to your regular check-up list for information. I can’t speak for other writers here but I plan to deliver regular content about topics that are likely to affect you as a user. With that said please look forward to the next article to keep up to date on everything EOS. Shoutout to @EverythingEOS by the way, another source of great information!
Until the next one, thank you for reading!
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