One way or another…

On the 20th April Block.One released an academic paper and a code release under the title “Stake-Based Voting and Rewards Mechanism” .

The EOSIO community was asked to review and provide feedback.

An upgrade like this needs a clear objective or problem it is seeking to solve, after review we can’t find what that objective is other than to provide more staking rewards in an attempt to compete with other blockchain projects which have higher headline yields as can be seen by the comparison table in the paper.

Table 2 — Block.one-Stake-Based-Voting-and-Rewards-Mechanism-March-2021

The reality is this proposal completely misses the issues which have plagued EOS and EOSIO projects since launch.

The issue is Capital Allocation.

The majority of the money is with and continues to flow to those who extract rather than create value.

There has been a hunt for yield through vote trading / pay for proxies. This has resulted in less capital being available for infrastructure, education , marketing, development and experimentation.

This has been noticed by the community at large who are working on attempting to implement a fractal governance and funding mechanism for the project project — Code Name Eden. Should that idea be successful it would require an inflation increase would provide continuous funding to this organisation and community projects. Those building it are putting their own sweat equity in now at risk for a chance of a better tomorrow.

The proposal by Block.One and their Academic partner also suggests increasing inflation but to “reward” token holders directly.

In our opinion this does nothing more than push more token capital down the same pipe to the Whales and Exchanges which have been in control for the past 3 years. That fact has resulted in below market returns for the EOS project as a whole, and a complete abandonment of investors into any projects building on EOS or EOSIO.

So the choice seems to be more of the same or take a chance and try something new and support the people who continue to show up, debate, argue and try.

In a world of finite resources it’s those who allocate their capital the most effectively have a better chance to win.

Block Producer in Republic of Ireland. Here since the beginning. Always looking to add value. If you have read this far, much love.