Crypto

New EOS Service Incentivizes Centralization of Block Producers

In the cryptocurrency world, there are always some serious allegations to be found. In the case of EOS, it seems that “vote buying” is rather common, according to some sources.

Whenever a governance model is introduced, vote buying will become a thing.

EOS Block Producers may Begin Colluding

In politics, this has been the norm for many decades now.

Transferring that attitude to cryptocurrency governance models is not the road to be taken.

Unfortunately, it would appear that EOS block producers may have an incentive to behave badly.

Through a new service they can share block rewards with whoever votes for them.

The service provider, known as Genpool, is quite interesting, but also potentially harmful.

Related Post

It seems likely that solutions like these will lead to even more centralization among block producers.

In fact, major BPs could collude against others to receive more votes and pay voters with a share of the block reward.

As devious as that approach would be, it is also completely legal courtesy of Genpool. 

It is not the first time services like these launch for EOS either.

In Asia, they are relatively common, albeit none of them cater to English speakers.

How all of this will affect this particular ecosystem, remains to be determined at this stage. 

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Hyperliquid Proposes 37M HYPE Burn as Validators Prepare to Vote

Hyperliquid is facing one of its most consequential governance moments yet. A proposal now before…

3 hours ago

Tether Introduces PearPass, a Local-First Password Manager With No Servers

Tether has entered a new category. The company announced the launch of PearPass, a peer-to-peer…

3 hours ago

Solana Takes First Steps Toward Quantum-Resistant Security

The Solana ecosystem is beginning to prepare for a future many in crypto still treat…

1 day ago

Institutional Bitcoin Accumulation Enters a New Phase

Bitcoin accumulation is no longer subtle. It’s visible. It’s deliberate. And it’s accelerating. In the…

1 day ago

Ripple Expands RLUSD to Layer 2 Networks, Laying the Groundwork for Institutional DeFi

Ripple is pushing its stablecoin strategy beyond a single chain. The company has announced it…

1 day ago

Standard Chartered and Coinbase Deepen Institutional Crypto Partnership

Standard Chartered and Coinbase are pushing their institutional crypto relationship into a new phase. On…

2 days ago