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Here’s why EOS will accroach your tokens if you HODL for too long

If you are one of those people who love to buy cryptocurrency and forget about it for the next several years, then EOS might not be the one for you. It doesn’t want any of your HODLing.

Block.one — the aggregation behind the EOS Arrangement — has inscribed in the blockchain platform’s architecture that any EOS associates who don’t put their tokens to use for three years could get their accounts terminated.

Such accounts will either be put up for bargain or the amount held in abeyant wallets will be broadcast to the rest of the EOS token holders. The architecture says that redistribution will be done “according to the system arrangement accoutrement then in effect” for such event.

This is what the accepted draft reads about HODLing:

Article XV – Termination of Agreement: A Member is automatically appear from all capricious obligations under this Architecture 3 years after the last transaction signed by that Member is congenital into the blockchain. After 3 years of cessation an annual may be put up for bargain and the gain broadcast to all Associates according to the system arrangement accoutrement then in effect for such redistribution.

So why would EOS have a botheration with captivation given how accepted the HODL action is these days? We spoke to Rick Schlesinger, co-founder of EOS New York – a arch block ambassador applicant for the arrangement – who offered some acumen into the arguable Commodity XV.

According to Schlesinger, the reason is to ensure the belvedere does not aberrate from its advised utility:

EOS is a decentralized operating system with accretion assets attainable through the EOS token. EOS encourages token holders to use these tokens to build dApps and communities by staking tokens for RAM, CPU, Network, and eventually storage. These assets are scarce. If a user stakes for commodity like RAM, and that adeptness is not being used by a smart arrangement or other ciphering action then that user is in abuse of Commodity XV. So long as a user is utilizing the assets they have, staking, and assuming an action, then this Commodity is of no affair to them.

But here is the botheration with this explanation: Block.one ran a year-long antecedent coin alms (ICO) for EOS and broadcast tokens to about anyone absorbed in buying them. Indeed, many of the people who invested in EOS cryptocurrency are enthusiasts attractive to score a profit – and not developers gluttonous to build on top of EOS.

Schlesinger says that, while he can’t answer for Block.one, actively accommodating in the EOS ecosystem will be acute to the success of the belvedere and this is absolutely why the accepted adaptation of the architecture is black users from idly captivation on to their investments.

Regardless of the aftereffect of Commodity XV, we will be auspicious active accord in the EOS association behindhand of whether or not addition is a software developer,” Schlesinger told Hard Fork. “Even if addition can just re-vote for a BPC or on a Worker Proposal once every three years that would absolutely negate any worry about Commodity XV.”

As Schlesinger also notes, the commodity does permit captivation the coins long term as long as the wallets are assuming some actions. So technically, you can HODL your EOS as long as you make at least one transaction (no matter how small) once in every three years.

In any case, Schlesinger points out that the constitution is not yet final and the clause in catechism might be accountable to change. This is just a draft by the Block.one team, and the architecture could be adapted by the association in the future.

It’s also important to bethink that this is a proposed architecture as noted in Commodity XX. Also, in Commodity XI we have the adeptness to amend the architecture according to the community’s will. I would think that the association will rationally accept the nature of scarce accretion assets and advance an another band-aid to the accepted Commodity XV, but we’ll have to wait and see once the chain is live and is able to be amended.

The fact that the association can revise the architecture at will means it could go through common changes, at least initially. Schlesinger notes that it ultimately depends upon what the majority wants. The association can bring a change to the architecture on whatever area they deem appropriate.

Schlesinger told Hard Fork that anyone who holds an EOS annual with tokens is a part of this association and can call for a referendum. But, he added suggests that the opinions of influencers like Block.one CTO Daniel Lanimer could have cogent impact on the way stakeholders vote.

Influencer impact aside, Schlesinger explains that the voting access will ultimately depend on the amount of EOS voters hold – the fatter your wallet is, the bigger impact you have on voting.

He added argued that the EOS token is widely distributed, but a recent report by Trustnodes adapted almost 50 percent of all tokens are held by a total of 10 wallets. This acutely raises some doubts over how fair or autonomous the voting procedures with EOS will be.

For the record, the better holder is Block.one with 100 actor EOS tokens – a amazing 10 percent of the total supply.

Over the past days, EOS has accustomed criticism for the delay in the launch of its mainnet, its poorly drafted constitution, and the string of vulnerabilities in its blockchain.

Indeed, even though the blockchain assuredly launched on Sunday, it is not yet live — awaiting the acclamation of block producers.

Update 19:00 UTC, June 12: Schlesinger has since antiseptic that his affect is that the EOS association should actively claiming the architecture and any arguable agreement it includes.

I do think the association is going to analyze [Article XV] carefully (as they should),” said in an email to Hard Fork. This is why we’re here – to agreement with this beginning technology and learn about how a absolute blockchain can acknowledge to the community’s will.”

He has added downplayed the accurateness of Trustnodes’ token administration report, arguing the advertisement failed to factor out the wallets of barter desks from the calculations.

“The key misstep Trustnodes and others have done is that they’re accumulation the barter wallets which annual for many bags of alone accounts,” Schlesinger told Hard Fork. “If you do not abstract these accounts the assay will be incomplete: debris in, debris out.”

Published June 12, 2018 — 16:48 UTC

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