Yesterday, a snapshot of the EOS network, proving the presence of certain 10 addresses that concentrated 49.67% of all tokens, excited the crypto community.
According to the information, the distribution of tokens looks like the top 100 addresses own 64.82% of all tokens from the total EOS supply of 1 billion coins. Of these, Block.one owns 10%, 100 million coins and 39.67% of all tokens are concentrated in 10 addresses. In total, the largest hundred own 74.82% of all tokens, while addresses 101 to 163,930 have only 13.86%.
According to CoinMarketCap, only 25 exchanges have a trading volume in pairs with EOS of more than $1 million. This means that at least 75 addresses out of the top hundred belong to non-exchanges.
According to this distribution, only 10 companies or individuals have a “controlling stake” in the EOS network and the ability to influence any vote. This situation contradicts the very ideas of decentralization and makes fair voting impossible.
Since the basis of the network is innovative - the strategy of attracting investors through the DPoS (Delegated Proof of Stake) consensus algorithm, the so-called ability to vote with your wallet, such a distribution of coins jeopardizes the basic principle of user voting.
In the near future, the network will have to select 21 transaction validators. Similar to the election of a government in a democratic republic, democratically elected miners (either individuals or organizations) will be required to keep the network running smoothly for a fee. Taking into account the growing popularity of the network, the amount for transaction validators is quite large: about $400 million per year. It is not surprising that this fact forces many to fight in the “elections” and, perhaps, in a not entirely honest way.
Who owns the top 10 addresses and who is trying to form a “coalition” that will almost unanimously control the EOS network is still unknown. With this development of events, democracy threatens to become a plutocracy and carries high risks for the system, turning it from a decentralized platform into a centrally managed network.
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