Why do we take EOS seriously when it’s clearly a plutocracy?

Quick Take

  • EOS is a heavily-centralized network controlled by insiders that serves to benefit its creators and early backers
  • The 4th ranked EOS-designated “block producer” has announced that they’ll start sharing the rewards with their constituents
  • The arbitration process prescribed by the EOS Core Arbitration Forum (their equivalent of a judicial branch) is structurally flawed

EOS, the brainchild of seigniorage addict Dan Larimer and noted #1 cryptocurrency project by the Chinese government, has confirmed what we always sort of knew: EOS clearly functions as a plutocracy—governance by the rich, for the rich.

It wasn’t always this way: a company called block.one created EOS in 2017. The team described their mission as providing “end-to-end solutions to bring businesses onto the blockchain from strategic planning to product deployment.”

They initially offered an ERC-20 token on the Ethereum network in a controversial, continuous year-long ‘Not A Token Sale’ where customers bought tokens, booked as revenue by block.one, the administrator of the EOS network.