The EOS blockchain network is embroiled in a controversy pitting the blockchain community and the EOS Network Foundation (ENF) against Block.one, the company that created the blockchain and co-founder Brock Pierce.
After the community voted unanimously yesterday to cancel paying Block.one 67 million EOS that was to be paid to the company over a seven-year period for network support, Block.
One CEO, Brendan Blumer, stated that the company was unable to meet yesterday’s deadline to transfer EOS intellectual property to ENF or have Block.
The coins were lost because the deadline was unrealistic.
According to Yves La Rose, leader of the EOS Network Foundation, the community has been complaining that Block.one was no longer acting in the best interests of the network, and the latest move to cancel the payment solidifies EOS’s plan to move away from Block.one.
“Through a supermajority vote, the EOS network has taken control of its own destiny by voting to fire Block.one and cease vesting tokens to them.” This marks the beginning of a new era for EOS and demonstrates the power of the blockchain to enable a community to stand up to corporate interests that do not align with theirs.”
The move follows a series of actions by Block.one that alluded to the company abandoning the network, as some community members claimed. This includes the decision by the company not to build the ‘Bullish’ crypto exchange and Voice social network on the EOS blockchain.
They had been negotiating for a few days until yesterday. Despite the negotiations, the EOS Network Foundation was unable to acquire intellectual property rights from Block.one because it is linked to more parties, including the Bullish exchange, and Block.one required those rights from the exchange. Rose stated that the network’s block producers were dissatisfied with Block.one’s proposal regarding intellectual property transfers and the lack of formal public clarity on the subject.
Blumer took to Twitter to explain why Block.one was unable to fulfill the plans agreed upon, as well as his company’s plans following EOS’s decision to halt payments. He stated that the company could not legally transfer intellectual property without directly owning the software or on behalf of third parties, and without engaging the Bullish exchange because the EOS community did not provide relevant documents that would be presented to Bullish to facilitate engagement and IP transfer.
“There were no agreed-upon timelines, only abrupt deadlines devoid of any documented usage plans that could be presented to Bullish.” Material transactions with a public company take time and must be scrutinized. “Willingness was present, but time was not – which is fine.”
“This outcome made no difference to us; we simply tried to assist but were not given the necessary time or documents.”
The 67 million EOS are part of the 100 million EOS Block, which one would eventually receive over a ten-year period. A portion of it was to go to Brock Pierce, co-founder of Tether and Block.one.
Blumer stated that Block.one intended to use the remaining tokens due to it by EOS to increase EOS staking and liquidity on Bullish through depositors. This would aid in the adoption of EOS among non-EOS-based projects, he said. Block.one announced on Monday that it would donate some of these tokens to two companies and ENF.
“Our team has been focused on assisting EOS in thriving at the application layer.” EOS projects have been neglected by exchanges with competing interests, and there was a real lack of liquidity infrastructure, which Bullish has proposed to provide.”
Blumer maintained that Block.one is committed to fighting for EOS as a decentralized blockchain, but he was eager to move forward following the payment halt without taking legal action against anyone.