Weiss Ratings, a U.S.-based financial research and investment grading agency, has recently announced it downgraded the grade given to EOS over ‘serious centralization issues’ it has, that weren’t alleviated in the B1 event.
On social media, the rating agency noted that this led to a “severe” downgrade to EOS’ technology score, and it is now up to Cardano (ADA) to “launch a truly decentralized” proof-of-stake blockchain.
EOS DOWNGRADE: #EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score. It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.#crypto #Cardano #BTC
— Weiss Ratings (@WeissRatings) June 7, 2019
As CryptoGlobe covered Block.one, the company behind the EOS network, has recently announced that the company is using the EOS blockchain to build a “more transparent” social media platform called Voice.
The announcement came during a keynote event on June 1, that didn’t address some of the other problems users see on the EOS network. Recently, or example, a popular Block Producer (BP) – equivalent to miners on Bitcoin’s blockchain – fell out of the top 21 BPs responsible for maintaining the network.
Shortly after tweeting this our unbroken streak ended. We produced blocks for 245,073 rounds or 357.4 consecutive days before we were voted out. Our world class infrastructure is sitting idle so go vote! Regardless, our work to improve #EOS continues! https://t.co/kNFi9JkR3n
— EOS New York (@eosnewyork) June 7, 2019
This, some users claim, was based on the voting system the cryptocurrency’s network has, that seems to reward large token holders. Per some users, there’s a “Chinese whale cartel” operating to elect the BPs they want, which are subsequently rewarded with EOS tokens. EOS’ block producers have, in fact, been accused of colluding with one another.
Eos has also been accused of centralized because of the role its block producers and its EOS Core Arbitration Forum (ECAF) have. The ECAF is a body set up to resolve community disputes, that has last year ordered the 21 BPs to freeze 27 accounts. This led to some governance issues revolving around the power these have over the network.
As a result, Block.one CTO Dan Larimer ended up proposing a new constitution for EOS amidst the controversy. Despite the controversy, EOS’ price has seemingly been following the cryptocurrency ecosystem’s performance.
After hitting a $1.5 low in December of last year, the cryptocurrency’s has kept on rising and even came close to the $9 mark earlier this year. CryptoCompare data shows EOS is currently trading at about $6.5.