Controversy has been brewing on Twitter in the last few days as details emerge regarding the modus operandi of EOS’ block producers, and in particular Huobi.
The Huobi exchange acts as one of twenty-one block producers on the EOS network, and is now coming under allegations that it has been buying and selling block producer votes.
You Scratch My Back…
As detailed by Twitter user Maple Leaf Capital, an apparently loyal EOS community enthusiast, this recent article covers the extent of the collusion. The article even shows the cold, hard numbers, as block producers cut each other percentages of EOS returns in exchange for BP votes. Maple Leaf Capital provided coverage of the Chinese article for English users, stating:
“The 2 allegations by the article are (a) Huobi and many other BPs mutually vote for each other to cement their BP position, and (b) Huobi openly votes for a few bp candidates in exchange for EOS returns.”
Maple Leaf Capital continues:
“In allegation 1, Huobi votes for 20 other BPs candidates where 16 of those vote for Huobi as well. As you can see in the image attached to this tweet.”
Another image included in the article shows the percentages that EOS block producers negotiate with each other in return for votes. Essentially it’s like Don King taking a cut of a young boxer’s purse. In the case of Huobi, according to this article, that cut can reach as high as 170%.
“In allegation 2, Huobi votes for eosiosg11111, cochainworld, and eospaceioeos in exchange for 170, 150, and 50% of the returns respectively, as shown below in the tweet.”
Huobi Pool Tokens
The controversy doesn’t stop there;