With no system in place to actually allocate the funds locked in a savings account on its protocol, EOS is building a voting system to help with decision making.
Nearly $200 Million on the Line
(Source: Iki Guide)
When it was created, the EOS blockchain network hosted an account called eosio.saving, used as a safe for money that would, in theory, fund future initiatives that will benefit the EOS community.
The account, which now has $35 million worth of tokens, will be worth close to $192 million at the end of EOS’ first 12 months as a live blockchain.
The problem is that the network currently has no system in place that would actually allow it to allocate the funds.
When it went live in June 2018, the EOS blockchain network was incomplete, with much of its functionality remaining unbuilt. According to the network’s whitepaper, a key aspect of the EOS protocol was “a defined governance process” which would enable token holders to vote in the referendum based on the number of tokens they held.
However, as the process that would allow such voting doesn’t exist yet, the EOS community is split over what kind of referendum system should the network implement.
Daniel Keyes, the co-founder, and COO of EOS Nation, a standby block producer, is acting as project manager for a team composed of different block producer candidates, who are working together to build the referendum system.
Another group, known as the EOS Core WPS Working Group, is developing the “worker proposal system” or WPS. The system would be used to submit proposals and allow token holders to vote on whether or not to fund them using tokens from the eosio.saving account.
Community Split over What to Do
With so much money and the future of the entire network on the line, the EOS community is split on what to do with the funds.
In an August 16 blog post, the EOS Core WPS Working Group suggested that around $4.8 million worth of EOS tokens be transferred out of the eosio.saving account and used to fund high-priority projects.
According to Orchid Kim, a community builder at the block producer candidate EOSYS, the only way for EOS to “live up to its expectations” is to create the referendum voting mechanism and allocate the savings to future projects.
However, a large percentage of the community disagrees with Kim and the WPS, arguing that EOS should ditch the WPS and the token inflation that funds it. Brendan Blumer, CEO of Block.one, the company that developed the code behind the EOS protocol, endorsed this view in late July.
They believe that the “whale” block producers – those that hold a large number of tokens, would vote certain block producers into the top spots in exchange for a cut of the earnings.
With the system being based on the one-token-one-vote approach, many see accounts with large numbers of tokens as determining the outcomes of votes.