Centralization Issues on EOS Were Discussed On Twitter – Larimer to Deal with Congestion Issues with New Proposal

By Steven Anderson November 28, 2019 Off

The price of the EOS is trading above $2.500, and it will likely test $2.850.  Immediate resistance is seen near the $2.720 level.  The price might face strong resistance at $2.850.  The major support on the downside is seen at a $2.500 level.

Centralization issues related misconduct about EOS is widely discussed in a November 28, 2019 tweet:  “Six registered producers on EOS are managed by a single entity. This is unacceptable. We have requested the signatures of the top 50 registered producers so that all token-holders may know who does and who does not condone such impropriety.” 

A counter-argument to the twitter read thus: “1T1DV and stake-time weighted voting via Dan’s stake pools needs to be our top priority right now. It will permanently solve this issue.”

Block producers on the EOS network are similar to miners on the Proof of Work (PoW) or Proof of Stake (PoS) Protocol.  The consensus mechanism in EOS makes a difference.  They have a delegated proof-of-stake in compliance with the EOS constitution.  The participants in the network will be staking their tokens to vote for the BPs as the “elected delegates.”

Dan Larimer of EOS has come up with a new resource allocation model, which is meant to combat the congestion on the EOS network.  The dApp developers will be able to get improved bandwidth resources, provided the proposal is successful. The changes will make the NET and CPU resources available at a stable price.

When explaining his proposal, Larimer stated, “The single biggest complaint is that CPU is too expensive [and] that it is too unpredictable in terms of how much CPU bandwidth you get at any given time.”

The current proposal from Larimer is focused on discouraging speculative activity.  The proposal ensures that 100% of the CPU to be leased from EOS by contract during all times.  Thus, the CPU becomes a non-transferable resource.  The price curve is steep in this process.  And these features will make the dynamic resource market into one that is stable.  EOS has tried to solve the congestion problem many times before.

The REX was previously used to deal with congestion.  There were a lot of failings with the REX; however, it continues to be operational. Larimer stated, “The good news is that REX is working as designed.” Whether the current solution of Larimer will be implemented is for time to dictate.