Bithumb, one of Korea’s largest exchanges by reported volume, has decided that Koreans are not adequately represented in the EOS network.
The exchange claims that as much as 10% of all EOS belongs to Koreans.
In a letter to users this morning, Bithumb said:
“One of the important characteristics of EOS is that those who hold EOS can elect EOS block producers by voting. However, according to various channels including Bloks.io there are no main BPs among the users in EOS community who actively work in Korea as of 8. , 2019. This is unusual considering that approximately 10% of the entire amount of EOS issued are circulated in Korea, which implies that most EOS holders in Korea are excluded from the EOS eco.”
The EOS governance model is unique in several ways. One of its more notable features is an “arbitration system” which allows for reversible transactions under limited circumstances.
All decentralized networks rely on their users and beneficiaries to maintain their infrastructure. The resilience of a given system can be determined by its points of failure.
Bithumb is utilizing all the EOS the exchange holds to make the Korean vote count. They are hiring an outside firm to manage the endeavor.
If the exchange earns any profit from its participation as a block producer, it will redistribute some funds to exchange users whose EOS was impacted.
The letter makes plain that the current terms and conditions for Bithumb users do not allow for any of the above, so a change is expected to be published on August 31st.
The new terms and conditions give the user some rights – they can “withdraw consent” at any time.
Money talks. Bithumb is one of the first major exchanges to acknowledge its ability to help users. The move is similar to Binance deciding to ensure that NEO users receive their GAS.
Bithumb’s reported volume at press time was over $620 million in the past 24 hours.
FYI: Bithumb has previously been exposed as fluffing its volume numbers.