EOS In Trouble After Breaking Rules Of Its Own ‘Constitution’

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Another controversy regarding EOS came to light this week when the fourth largest crypto had seven of its accounts frozen by the 21 block producers. The action was taken under suspicion of theft after it was discovered that half of EOS coins were being held by only 10 wallets.

EOS has had quite a difficult period lately, being the subject of several controversies. The latest one happened only days ago when the 21 BPs (Block Producers) decided to freeze EOS’s accounts without consultation. The seven accounts that were frozen are suspected to be in possession of stolen cryptos, and the action itself is part of an initiative called EOS 911.

EOS 911 is a safety protocol that is used in case of an emergency. A large theft falls under this category and the move was made even though it represents the violation of EOS constitution’s own rules. According to the rulebook, the block producers are not supposed to be the ones who make such a decision, they are there in an executive capacity only.

In this case, the decision was to be made by ECAF (EOS Core Arbitration Forum), and ECAF decided that freezing the accounts was not necessary, stating that they do not have the authority to order such a thing. As a result, the BPs took action themselves, and the accounts were frozen on June 19th.

EOS faces major criticism

Several individuals connected to the crypto space criticized the decision, including Dogecoin’s founder Jackson Palmer and Nick Szabo, a cryptographer and computer scientist.

Even more criticism hit the alleged decentralization of immutability of EOS’ blockchain, which should not make it possible for the BPs to just organize a meeting and decide something like this.

The Bitcoin Foundation’s founding member, Charlie Shrem, stated that the immutability is essential, despite the fact that it might harm the crypto itself. Otherwise, the whole concept of cryptos is lost.

So, even though the BPs’ motivation was one of security, this action has clearly demonstrated where the power lies, which is not something that the community is willing to accept. This is not even the first controversy surrounding EOS this month. The previous one came barely over a week ago when the crypto launched its MainNet, which was then forced down due to a glitch.

June 2018 has not been kind to EOS, and the crypto and its team appear to have made several bad calls. The consequences of the controversies have yet to be fully determined and it might take a lot to calm down EOS’ community after this fiasco.

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