EOS Community Votes to Halt Vesting to $4B Backer Block.one

The EOS community is still at war with the project's giant backer, Block.one. Now, decisive action has been taken.

Shutterstock cover by Wit Olszewski.

Key Takeaways

  • The EOS community has voted to stop token vesting to Block.one, its $4 billion backer from the ICO boom of 2017 to 2018.
  • EOS developers and block producers, the EOS Foundation, Block.one, and Brock Pierce have been unable to reach a mutual agreement on a supply of locked EOS tokens.
  • EOS has struggled to live up to its promises since launching in 2018, and its token is still significantly short of its peak.

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EOS block producers have voted to stop vesting tokens to Block.one. The battle between the EOS Foundation and the project’s founding team, Block.one, continues. 

EOS Community Votes to Stop Vesting

The EOS community has voted to stop vesting tokens to Block.one.

The project’s top 25 block producers reached the decision following weeks of negotiations between the community and EOS’ lead backer, Block.one. The block producers have opted to stop issuing 67 million EOS tokens that were scheduled to be unlocked over the next six to seven years. 

The vote is the latest turn in an ongoing saga involving the community-backed EOS Foundation and Block.one. In November, the EOS Foundation proposed blocking Block.one from accessing 45 million EOS tokens worth around $196 million. The community claimed that Block.one had failed to deliver on its promises for EOS after raising $4 billion during crypto’s infamous 2017 to 2018 ICO boom.

Block.one announced that it had sold 45 million EOS to Pierce last month. Of the 45 million tokens, eight million were already liquid, leaving 37 million. The organization was due to receive a further 30 million tokens that it committed to the EOS Network Foundation on Sunday.

Yesterday, Block.one co-founder Brock Pierce wrote in a tweet that he was working with the EOS Foundation CEO Yves La Rose on a “mutually beneficial proposal” that would allow the foundation and the EOS community “to take a leadership role in the future of EOSIO’s development and intellectual property.”

Block.one CEO Brendan Blumer also commented on the issue, emphasizing that “a lot of stakeholders” would need to be considered for any proposals. He later deleted the post without giving further explanation. Several major EOS block producers had a meeting to discuss the matter, and a clip of it can be seen here.

A series of failed meetings and disagreements over who would deliver a letter of intent ensued, culminating in the final vote between the block producers.

EOS originally emerged as a so-called “Ethereum killer” after raising $4 billion via Block.one, but its path has been far from smooth over the last few years. The project has continuously faced criticism for failing to live up to its promises, and the EOS token has struggled to hit its 2018 highs. It currently trades at $3.75, which is still 83.6% short of its peak. 

Disclosure: At the time of writing, the author of this piece held ETH and several other cryptocurrencies. 

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