The EOS price on Wednesday posted more than 10% in gains against the US dollar owing to strong fundamentals.
The cryptocurrency opened the day at $2.7253 on Bitfinex but dropped during the early Asian session to establish an intraday low towards $2.7066. It briefly bounced back as the course matured and entered the European trading hours, setting fresh high towards $2.8402. Before the US session kicked in, the EOS market had extended its upside gains to establish a new intraday high at $2.9076.
While the rally came as a part of an overall crypto recovery, which saw almost all the significant coins, including Bitcoin and Ethereum, establishing fresh session highs, EOS was among the few coins that had a strong fundamental to back its interim bullish sentiment.
Huobi, the world’s third-largest cryptocurrency exchange, said in their official press release that they would create an EOS-based derivative platform where traders would be able to take both long and short positions using the EOS tokens. The announcement also revealed that EOS tokens would be used to arbitrage, speculate, and hedge on the platform. The event overall promised growth in demand for the cryptocurrency.
Before EOS established fresh highs, the project also attracted a significant proposal from Brendan Blumer, the CEO of its creator, Block.one.
Blumer reached out to the community to address the controversy related to the EOS’s inability to tackle vote buying. On New Year’s day, he suggested the EOS should modify its constitution to allow block producers to formally pay dividends to users who provide to their stakes, terming the solution as “Voter Rebates.”
To those who are unfamiliar with how the EOS blockchain works, the blockchain project is based on a distributed-proof-of-stake (DPoS) protocol that has block producers instead of miners. EOS users vote for candidates by staking their tokens, and those with the 21 largest stakes become the active block producers. They contribute by producing blocks in turns, thus confirming transactions at a much faster rate than a proof-of-work (PoW) blockchain does. These winners, according to the EOS constitution, cannot pay any benefit to their voters.
Article IV — No Vote Buying: No Member shall offer nor accept anything of value in exchange for a vote of any type, nor shall any Member unduly influence the vote of another.
In early 2018, Ethereum founder Vitalik Buterin had warned the community about the limitations of EOS’s plutocratic governance model, which he said ensured centralization. The fears became real when — in October 2018 — a leaked Excel spreadsheet allegedly showed Huobi accepting kickbacks for voting certain entities for the role of EOS decision makers.
However, the problem it created was leaving users with no means to earn rewards even after staking their EOS tokens.
The suggestions made by Blumer would allow users to earn dividends from the block producers, much like a public stock company that pays its shareholders on a timely basis.
The proposal is now in its infancy but could see the light of the day should the EOS community favors it in large numbers. If implemented successfully, the “voter rebates” solution could improve the EOS adoption rate, increasing its value in the long-term.
Featured Image from Shutterstock. Price Charts from TradingView.
Last modified: May 20, 2020 1:02 PM UTC