The EOS community is drafting a petition about limiting voting to protect small hodlers’ voice against the whales’.
The EOS community is being concerned about the “whales”, refers to the parties who hold a huge amount of tokens, having such a huge influence that the small amount hodlers’ voice no longer matters.
Built with the concept where blocks validations are determined by block producers (BPs), instead of miners, EOS makes those who invested more money to have a stronger voice in important decisions’ making, with no limits set whatsoever on the number of votes.
The platform’s election system asks users to use their tokens to vote which parties will maintain the blockchain, by locking their tokens up and nominating candidates. 21 selected users with the most votes will have the responsibilities to produce blocks and keep things running smoothly. In return, they will earn EOS tokens for “their service.”
One of the “whales” that the EOS community highlighted in the petition is the Bitfinex, the exchange behind the stablecoin, Tether. With a huge amount of EOS tokens the exchange has, they have the capabilities to cast as much as 40 million votes, out of 370 million votes available.
It gets very interesting as the parties selected by Bitfinex would be able to make a substantial amount of cash. The given example is Genesis Mining which makes nearly 300 EOS ($1,500) per day on standby, which means the cloud mining company is not actively producing blocks, solely because they received enough votes from Bitfinex.
However, not all seem to agree with the petition. EOS Dublin spokesperson said, “Bitfinex have so far been an honest player in the community and have given some of their larger token holder customers a way to cast votes through proxies.”
EOS UK, on the other hand, has their own opinion on the “whales” monopoly subject. To The Next Web, the spokesperson, Roger Davies said, “I am almost certain that manipulation of the voting of block producers is taking place. I have no direct proof of this, of course, but we have become increasingly frustrated by […] this unnatural voter distribution. [It] suggests collusion of whale token holders, ‘whalification’.”
That said, he doesn’t believe that the petition would become the best solution to the “whales” issue. According to him, Telos would be the most suitable solution to improve the voting mechanism, as it requires hodlers to utilize all their voting power to vote for the maximum, which is 30 at the moment.