The EOS network is based on the delegated Proof of Stake Consensus mechanism. 21 so-called block producers are the delegates and earn 1% of annual inflation.
Originally it was in the essence that it is prohibited to buy votes. The ECAF executed disciplinary breaches punishable. However, the ECAF was removed in April, so there is no longer a risk for block producers to buy votes. This also seems to be properly exploited. The landscape of the EOS block producers has since changed massively. The original block producers such as eosnewyork, greymass, eosauthority, eosnation and a few more, which have massively advanced the network and have significantly increased the added value through Blockchainexplorer, and other software or Youtube channels are all no longer in the top 21.
Now, Block producers join together, choose each other and try to bribe the voters. Colin Talks Crypto is a Youtuber that also runs an EOS proxy. A proxy is an account to which you can delegate your votes. The proxy then decides which block producer to choose.
Colin has published a chat history in which he was bribed. The Chinese block producer eoslambdacom asks if he can take over the proxy of Colin, in order to then vote with the votes for block producers of his choice. Colin refused.
This is the proof of the corruption that is taking place on EOS Mainnet. The players try to consolidate their positions in the game and take maximum advantage of it.
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Did EOS fail?
EOS, as originally planned, does not seem to operate. Now, the token holders should opt for block producers who add value to the network and do a good job. Also, the whales participate together in cartels and vote for each other. Since each vote can be a maximum of 30 times (depending on how many you choose), if you prefer for different block producers, there is an incentive for cartel formation.
Although there are different approaches to better, fairer choice models, it must first be seen whether they can be implemented on the Mainnet because of the situation described. In 10 days EOS will have a major technical update. With version 1.8 it is the first EOS hard fork. Among other things, it will be possible for dApp operators to be able to delegate resources to their users.
Is EOS Hacked?
According to a report, an attacker has used the current exploit on EOS network to obtain every roll on a gambling dapp, the network has been suspended. So far, the attacker has succeeded to steal more than $110,000 worth of EOS.
An attacker used REX on the blockchain network to get on the gambling dapp EOSPlay. A twitter user Rektkid revealed that an attacker leased a load of resources from REX and is applying to exploit a gambling dapp EOSPlay and has accumulated 30,000 EOS.
The news further reported that Jared Moore reported that until there’s a fork or a patch anyone who pays more than $1000 or more on REX can advance to abuse the exploit on the network. Co-founder of Greymass declared that the exploit was with the Dapp’s contract and not with EOSIO network. EOS has a market capitalization of $3.46 billion and is among the top ten cryptocurrencies.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.
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