summary: EOS is a cryptocurrency token based on EOSIO, a smart contract platform for the deployment of decentralized applications and autonomous corporations. Block.one ...
content: EOS is a cryptocurrency token based on EOSIO — a blockchain that operates as a smart contract platform for the deployment of decentralized applications and decentralized autonomous corporations. History Based on a white paper published in 2017, the EOSIO platform was developed by the private company Block.one and released as open-source software on June 1, 2018. At the launch of the blockchain, one billion tokens were distributed as ERC-20 tokens by Block.one. The CEO of Block.one, Brendan Blumer, announced that the company would support the EOSIO blockchain with over one billion USD in funding from the token sale, and ultimately Block.one raised over four billion USD to support the blockchain during the Initial Coin Offering (ICO) period. In September 2019, the U.S. Securities and Exchange Commission (SEC) ordered Block.one to pay a $24 Million penalty for an unregistered ICO. The SEC’s order found that Block.one violated the registration provisions of the federal securities laws and requires it to pay a $24 million civil monetary penalty. Block.one consented to the order without admitting or denying its findings. EOSIO’s initial testnet, Dawn 1.0, was launched on September 3, 2017, and the project went on to release four subsequent versions of Dawn before the official launch of EOSIO 1.0 on June 1, 2018. On January 10, 2020, the company launched EOSIO 2.0. Tokenomics Block.one began the EOS token sale on June 26, 2017, it sold 200 million tokens over a five-day period, raising a total of $172 million. Over the next 350 days, 2 million tokens were sold per day ($700 million total) raising a total of $4.02 billion. The final 100 million EOS tokens were reserved for Block.one. This allocation is set to be released linearly to Block.one every second over a period of 10 years starting from the Genesis Block on June 6, 2019. Supply Details The EOS network's inflation rate is 1%, split between the Block Producers (BPs) and Standby Producers, who received 0.25% and 0.75% of the annual inflation rate respectively. While BPs must share a smaller piece of the total reward pool, there are only 21 BPs; thus, they receive more daily EOS rewards on average than their counterparts. Standby Producers represent potential block producers ranked outside of the top 21 that have enough voting support from token holders to receive a minimum daily reward of 100 EOS. Utility EOS users purchase or rent the token to access network bandwidth, computational and storage capacity, and voting rights. The level of voting or computational power is proportional to the number of tokens held or staked. Unlike Ethereum or Bitcoin, EOS token transfers do not require a fee, as users do not need to entice miners to include their transaction(s) in the next block. EOS block producers earn new tokens only through the creation of new blocks. But transactions are not entirely free because users and developers need to acquire network resources in proportion to their intended on-chain activity levels. Technology EOS was built by Block.one and it employs a delegated Proof-of-Stake (DPoS) consensus mechanism, Graphene technology, and parallel processing to maximize performance. Graphene technology is an open-course software toolkit developed by Dan Larimer that helps improve transaction processing capabilities. It is used by previous Larimer creations; Bitshares and Steem, as well as MUSE and Peerplay. Parallel computation is a technology that divides transactions and smart contract execution among multiple processors to reduce the run time of a program. The first protocol version will operate on a single thread (i.e., a single processor) but will shift to a multithreaded platform in the future. EOS requires users to obtain resources (CPU, NET, RAM) to submit transactions and run decentralized applications. EOS holders receive CPU and NET by staking their tokens and receiving a proportional amount of the network resources. As a result, the network utilizes a no-direct fee model where tokens give holders access to their pro-rata share of network resources. Any operation needing storage or to create an account requires RAM to be purchased separately. EOS utilizes the WebAssembly Virtual Machine (WASM) to offer high speed and performance as well as support for different programming languages such as C, C++, and Rust. Governance EOS features on-chain governance that processes voting through its delegated Proof-of-Stake (DPoS) system. Similar to how EOS stakeholders vote on block producers, this model allows token holders to vote on protocol decisions that are automatically implemented or rejected depending on the final vote tally. Votes are weighted by the number of tokens held, and holders can opt to delegate their votes to another holder on their behalf. Protocol decisions can consist of changes to the system parameters, updates to the User Agreement, or alterations on the inflation rate, among others. Block.one Block.one is a publisher of decentralized applications as well as open source software where decentralized applications can be built on top of (EOSIO). It is a company registered in the Cayman Islands, which began offering EOS tokens in June 2017 to the public, raising over $4 billion during its ICO. It is led by Brendan Blumer who co-founded the company in 2016 alongside Dan Larimer. EOS x Everipedia On December 6, 2017, Everipedia (now known as IQ.wiki), a wiki-based online encyclopedia, announced plans to use EOS blockchain technology to work on an airdrop token called IQ to encourage generating information. On July 12, 2018, Everipedia (IQ.wiki) moved onto the EOS blockchain and launched the IQ token airdropping 51% of the IQ token supply to EOS holders. Everipedia Co-Founder and CTO Travis Moore explained that by doing an airdrop, Everipedia would ensure the widest possible distribution of IQ tokens with every EOS holder receiving tokens. "The airdrop will play a significant role in helping Everipedia accomplish as wide of a distribution as possible for IQ tokens."