Blockchain can change the world but it may not be EOS

As an investor of different Cryto projects, I believe that EOS is one of the block chain with great potential and advanced technology. However, I also think that you also aware the problems coming from DPOS (Delegated Proof of Stake) and EOS's voting system. Here is my opinions and suggestions to relevant parties including Block.one, existing active BPs, Mr Dan Larimer and other community members and hope that it will be constructive and can help to fix the problems.

If you are small investors but has invested quite a big portion of your wealth in EOS, it is crucial to voice out and express your concern. Though EOS is still more advanced and successful when compared with other chains, once the confidence is lost it cannot be recovered so easily.

Though we have heard a lot appraisal to EOS from different youtubers or from other media, now it is time for you to express your concern and advice to the community.

From Kyle of EOSVIBES and other Youtuber commenters like Crypto Tim , some major problems of EOS has come out continuously. However, recent tweet from Brendan Blume , the CEO of Meet.one said that Vote reward from BPs may be good. Though some good dapps like Chintai and game developed by StartEOS are amazing and you can get some rewards from them too, you need to vote for them as your Proxy.

That mean what you received is not free but just selling your voting rights.

*Some very good BPs like GeneEOS , Cyperglass, TeamGreymass are not currently top 21 BPs. *

As an investor of EOS, it cannot be denied that there is a trend showing that EOS is collapsing and the evidence are stated as follows. In some situation, these phenomenons are inter-related too. They are structural and political issue.

Major Problems being observed recently :

1. Vote buying and selling from whales/Exchange (Eg. Houbi)
2. Collusion among BPs (StartEOS and its affiliates, Houbi and its affiliates)
3. Proxy buying (Eg. Dapps of StartEOS, Chaintai )
4. Voting by Exchanges (eg. Houbi)
5. ECAF and BPS quarrel ( Key losing issue)

Since EOS is new but so far its achievement is great, it is worthwhile to protect it and keep EOS becoming more perfect. On the other hand, long term success of EOS is crucial to the community especially for BPs and VC funds and other long term investors.

As you know there is Path Dependence phenomenon for any system. That mean once any system pick up a wrong way, bad habit or accepting even very minor defects, the system will be self reinforced itself and it will get worse until it totally collapse because all the rent seekers inside will reject any change even it is a good change since any change will definitely damage a group of rent seekers and taking out their cheese. Moreover the collapse will be fast and sudden which I think it may be more vigorous and fast especially in Crypto world.

There is a voice in the community saying that higher voting rate can improve the situation. I totally agree that It may be true but it may not happen at all owing to many reasons.

1. Hidden cost you paid for Voting
2. Liquidiity need (Redemption need by institutional investors, Traders, etc)
3. Have we make any calculation about how much it cost us for voting in term of one year time period?

Our cost:

a. Effort for searching good BPs

b. 3 days unstaking which cost liquidity loss (3 days market crash can make you may lose 50%)

c. Time cost (renew/refresh your votes)

d. Token security (better keeping in ledger)

e. Token short term trading/business opportunity loss

If we add the volatility nature during the calculation, the ROI demand for doing the Voting for me 25% per year is reasonable. (If you come from Finance world, you will know that the premium you can receive by selling an one year long or put option is very high).

Some more problems

1. The current system is not one people one vote and so whale/Exchanges/BP with tons of EOS now basically can make the decision of who can be the active 21BPs. Do the current situation of 1 EOS 30 BPs Votes too many or too little? Shall we make it 1 EOS 1 vote or 1 EOS 100 BP votes? We need to think about it.

2. Now there is no way beside self-discipline to prevent any person setting up several BP companies in order to pretend that they are different BPs. Moreover, the name of his mom, his brothers can also be used to set up companies and as a result EOS will become more centralized. StarEOS is one famous example. Then can 1 EOS 1 BP vote help to solve this problem?

3. Can Dapps request users vote for their selected Proxy before we can use the dapps? Is it good to the community? I am totally convinced to vote for developers only or even pay for them but not losing my proxy rights of 30 votes.

4. Is Proxy function really necessary? Is Proxy function creating more problems for the community? Can we dump the proxy function from EOS? I think that it is no harm to cancel this function.

5. In future, token rental like Rex/ Chintai/ others resource rental platforms will take the tokens out from us via smart contract. Can we from the code level can keep the voting right to owners even we rent the token out? If not, can these platforms create many proxies in order to let us choose?

6. Resource rental of EOS has pro and con too. As you know the pro side, how about the con side? Reasonable price of RAM, CPU and NET can defer Dapps developers with less economic resource entering EOS. With cheap resource rental, there will be more shit/ scam dapps (many shit game dapps can be found recently) and tokens. I understand that it may be quite controversial. What I mean is that if there is ton of resource dump to the market and make the resource very cheap, it may not be too good to the community as a whole. **In addition one of the buying force for EOS will disappear too. **. However, I overall support Resource Rental with reasonable price in order to support more potential dapps developers for joining EOS. It may be a win win situation in long run.

7. If you rent out your EOS, you get some paid but you lose the utility of the token at the same time. If we want to use EOS dapps, we need to keep a certain amount of EOS as CPU and NET. If you play dice, infiniverse, Trype, etc you will find that 10 EOS is not enough. In future, 100 EOS may be ok since there will be many good dapps on EOS for us to use

My suggestions:

Fixed but attractive Voter Rewards after fulfilling voting criteria from System code level (not from BPs or Dapps):

In order to compensate voters, 2-4 % inflation can be allocated to voters.(4% of inflation assigned to WPF is suggested to be burned out. I suggest it can be used for this function). Voter rewards should not be coming from BPs/Dapps in order to prevent Vote or Proxy buying which will make the system collapse and hurt their profit margin of BPs. BPs should not be ill treated and should provide sufficient incentive thus they can support the community by providing good hardware and good dapps.

In order to be eligible for the rewards, voting criteria should be fullfilled. BPs should be voted.

Longer unstaking period for eliminating voting from Exchanges

In order to prevent non legitimatel voting from Exchanges which utilize depositors’ EOS without prior permission, longer unstaking period can be adopted in order todry out the liquidity and increase their cost of this misbehavior. Any duration from 15 days to 30 days unstaking period may be a good starting point.

Voting criteria: 1 EOS 1 BP Vote or 1 EOS 30BPs vote

One side chain claim that they are using 1 token 1 BP vote system. In my opinion, this can eliminate the chance of whales/BPS selling its votes (now 30 votes/ EOS) to other non capable BPs for profit or create their Cartel.

Better voting and staking system and structure in future

In order to attract more long term investors, provide stronger support to EOS price and attract more users for voting, these can be considered in future

Different rate of compensation depending on staking period like different dapps doing

Starting from 30 days, 60 days, 90 days to 360 days staking periods can be considered, different compensation rate can be adopted for different period.
In order to compensate the heavy cost incurred for voting and attract more voting different compensation rate is necessary.

This can promote voting and further minimize the size of voting from Exchanges.

Summary

There is no simple voting and governance structure which can creat a good DPOS system. Thus leaders inside the community please do the job.

Do you agree that the interest of BPs, whales, Meet.one and small size EOS investors are the same? I believe that most of the time the answer is YES but sometimes it is NO.

Do you think that that Voting rights for BPs and Proxy is very valuable or cost nothing? I believe that it is quite expensive.

Do you think that the system of EOS is getting better or getting worse? I believe that now it seems to be getting stronger with many new dapps coming out but in fact it is internally getting worse.

Do you think that a more decentralized BPs structure is good to the community or a centralized BPs cartel is better? I believe that we should encourage competition among all BPs in order to make EOS community stronger.

Do you think that the current situation of capable BPs being out from the 21 BPs is healthy? The answer is simple.

**There are many valuable **suggestions from Youtube KOLs and community members too. The captioned is my idea and I hope other community members can comment and criticize.

Blockchain will change the world and it should be EOS if we do something now.

Reference:

https://steemit.com/starteos/@theawakenment/to-all-long-term-eos-token-holders