EOS Price Down 13% for Week as Block.One Votes for Block Producers

EOS had a great day at the races yesterday, notching 7.5% gains as one of the best performers in the top-10. Today that trend has reversed, sending EOS to 8% losses for the day, and 13% losses over the week.

Yesterday, EOS and IOTA benefitted the most from the 24 hour surge; and today they’re taking the worst of the damage. IOTA is currently bordering on 6% losses for the day; a chunk more than Litecoin’s (LTC) 4% loss.

EOS is actually most popular on the BigOne exchange, with over $90 million worth of trades coming against ETH. The next four most popular trades are all against USDT Tether, on Binance, OKEx, Huobi and CoinBene. Interestingly, the first BTC trade only appears 7th on the list, coming from Binance. Ultimately BTC trades make up just under $100 million of the current daily volume of $630 million.

Looking at EOS from the vantage point of a month in the future, we can see that June was generally unkind to the recent mainnet launcher. The descent from a high of $14.39 on June 9th has been a long one – amounting to 43% losses over the month.

Block.One Begin Votes for Block Producers

The EOS mainnet launch revealed a lot about who actually holds the EOS tokens, with a very small batch of wallets accounting for the majority of the coins. And now we’re seeing the effects of having a development team with 10% of the tokens in their own pockets.

Now EOS has to use its influence to vote for block producers – a situation which could expose a potential problem. There are currently no block producers with more than 3% of the total stake behind them. The 10% held by EOS, depending upon how it is allocated, could end up proving disruptive.

EOS have already laid out some priorities for their block producer vote, and are selecting BP’s based on the following criteria:

“Honesty, integrity, and fairness… Transparency of identity, activities, and decision-making…  Abides by smart contracts and programming of network participants, in the absence of proven systemic bugs…  24/7 timeliness in processing transactions, upgrading the network, and emergency response… Compliance with the Ricardian Contracts entered into when becoming a block producer… Alignment on the EOS Constitution, the latest of which can be found here.”

Uneven Distribution

But what if EOS can’t find suitable BP’s? Well, EOS recently stated that they thought the maximum number of votes a wallet could lodge should be raised from 30 to 50.

This might raise a possible solution to the issue of where the 10% goes. If EOS could spread enough of the votes around enough BP’s, then it could possibly help to keep the playing field even.

Ultimately, the weight of influence that EOS holds on their network is a source of anxiety for many, yet a sign of security and stability for others. How decentralized it is may depend on how EOS casts its votes in the near future.

Featured image courtesy of Shutterstock.

Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.