Whoosh! That’s the sound of 34 million EOS tokens turning into ashy smoke. Whether you were awake at the time or asleep you probably surprised at the Twitter announcements that the EOS inflation had been reduced by a whopping 80%. Now although this will probably have no effect in the near term, the total amount of burned tokens represents just a little over $140 million. That’s a whole lot of value to simply erase overnight! Why wasn’t the community alerted about this or at least given a day to ponder the repercussions of such an action?
Like it or not, this is how governance works; you give someone else power to act on your behalf and have faith they’ll do so in your best interest, in this case, in the best interest of the community. This decision – to reduce inflation from 5% to 1%, then to cease the deposit of the excess 4% into the ‘eos.saving’ account, and then burning everything the account had – all happened in a single day. I woke up to praises of such a decision but I personally found it a bit suspect. Since when are the EOS BPs so efficient? It’s like this was premeditated and the decision was made before even the proposal came out. I smell smoke, and where there’s smoke there’s usually fire.
Not to beat around the bush here, but to be fair the decision to reduce inflation from 5% to 1% was already voted upon in June last year. However what was still unclear is what was going to happen with the ‘eos.saving’ account. Remembering this is the same account to which the excess 4% in inflation was sent, as per the agreement made in June last year. Surely, there are much better ways to handle an account with $140 million.
Is burning EOS tokens the answer?
I see every single EOS token as a valuable asset. And if a valuable asset is bothersome sitting in a ‘safe’ then it needs to be put to good use. By some ironic coincidence someone mentioned to me on Twitter, a day before we found out about the BP vote, that EOS needs an entity that directly benefits the community.
Blind to the events that would shortly follow, I began fantasizing about how the ‘eos.saving’ account would be the ideal candidate for funding such an entity. Heck, I even considered having a single company from each EOSIO chain to be representatives of this Decentralized Autonomous Organization (DAO) because I understand the challenges of trying to setup such an entity in a decentralized network. It would be governance 2.0 with all the drama of sock puppets, vote buying, collusion etc. A voice in my head said no that would be too much trouble. So I left it at that and carried on with my day.
Only to awake the following day to this news. Yes, I know I’m still stuck on this news thing. Welcome to Tuesday 25th, that’s where I’ve been waking up since that day. But letting it go just like that wouldn’t be doing what just took place the justice it deserves. Hopefully by the time I finish writing this article I’ll finally be able to look forward to a different day. Right now I’m thinking of all the wonderful things that could’ve been done with all those funds. We could’ve set up a charity account that donates a limited amount every year to world relief initiatives. You know, every account on Voice could’ve had one vote to make their voices heard on which initiatives they’d like the funds to go to that year. This would’ve given so many of us a chance to contribute at least one self-less act a year. Especially considering the negativity of greed associated with this space.
Failing which Block Producers could’ve used their newly found efficiency to halt current rewards and instead receive their one percent inflation from the ‘eos.saving’ account until it’s been depleted. Then resume to the normal 1% from the EOS contract. Hey, what about a Worker Proposal System, those are good too?! See what I mean? Deciding on what to do with the account could’ve given the community something positive to work on, instead of having to deal with constant negativity and FUD. And this by the way has just given the naysayers more ammunition. For the first time since launch I’m actually of the same sentiment.
This is the biggest slip-up BPs have made since they thought it’d be cool to decide on matters without letting the community know. Secrecy is not what I had in mind when I joined a DPoS system and I don’t believe it something you as the reader signed up for either. So why is it being celebrated? I don’t get it. A $140 million worth of EOS tokens just vanished at the snap of Thanos’ fingers. It’s truly out of character what the EOS community has done. We went from criticizing Ethereum for hard-forking in order to recover $50 million of users’ funds, to praising EOS Block Producers for burning a $140 million that could’ve helped a whole lot of people including this community. How desensitized we’ve become to numbers on a screen.
In hindsight, Ethereum’s $50 million hard-fork now sounds commendable compared to this. At least, they can argue for their moral intentions about that decision. Our BPs either: discussed this behind closed doors for days, or they voted on such a big decision in a matter of minutes. Either way it doesn’t look good on them. As a token holder and a voter in this EOS democracy I want to see that same efficiency from our BPs when it comes to making decisions regarding critical matters of the network.
My sincere condolences to those who are also affected by this…
Thank you reading!
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