EOS Community Revolts Against Brock Pierce’s Block.One, Won’t Pay 67M EOS

EOS and Block.One are back on the news. Is this one positive or negative, though? The EOS Network Foundation, a community-led organization, voted to decouple from Block.One. The ENF alleges that Block.One is no longer working for the benefit of the network. The company that created EOS will not get the 67M EOS that they had coming distributed over the next seven years. Even though the infamous Brock Pierce resigned from the company years ago, this will also affect his finances.

Related Reading | Peter Thiel and Bitmain Invest in Block.one to Support EOS Ecosystem

In The Present, What Does Brock Pierce Have To Do With Block.One?

This might’ve been the last straw. Just last month, Block.one announced that they were selling 45M EOS at a discount to one of Brock Pierce’s ventures.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

“Today we are pleased to announce that we have agreed to transfer 45 million EOS tokens to Helios.

Led by Brock Pierce, Helios takes aim at serving the EOS community through several high ambitions, including creating an EOS Venture Capital fund, facilitating the creation of institutional-grade EOS financial products, supporting the creation of infrastructure, tooling and documentation for developers, and organizing community events around education, networking, and use case development.”

A pseudonymous Twitter user that broke the news, analyzed it as follows:

He says that “Block.One went in to a deal to sell their vested EOS tokens for a discount to their previous associate Brock Pierce!” And that, to stop this behavior, “The EOS community worked as one big DAO. An excellent example of democracy through voting and DpoS.” Even though the ENF is not a DAO, this might be a good example of how Decentralized Autonomous Organizations should work. However, should a decentralized protocol be so easy to control? Should the EOS Network Foundation be able to roll back a smart contract just like that?

Get 110 USDT Futures Bonus for FREE!

In any case, according to The Block, the company is not yet in control of the 45M EOS they promised Brock Pierce. “Eight million of the tokens were already vested and controlled by Block.one while 37 million are still vesting (meaning they haven’t been released by the network yet).” Is this transaction what the EOS Network Foundation wants to block? 

EOSUSD price chart - TradingView

EOS price chart on Coinbase | Source: EOS/USD on TradingView.com

What Did The EOS Network Foundation Want?

The ENF was negotiating with Block.One. According to The Block, their goal was to “get hold of the EOS network’s intellectual property.” However, one of Block.One’s side projects, an exchange called Bullish, owned the IP. And Block.One “wouldn’t publicly commit to getting the intellectual property back.” What did the company do instead? They announced this:

“In addition to the recently announced Helios transaction, today we are pleased to announce our intentions to offer the following grants of vesting tokens that are intended to be given over time, and subject to our token availability:

  • EOS Network Foundation – 30m EOS

  • Pomelo – 1m EOS

  • EdenOS – 1m EOS”

Related Reading | Cardano CEO Shares “Too Big Too Fast” Insight on EOS CTO Departure

How did the EOS Network Foundation react? They wanted the IP, not tokens. So, they created this proposal, which was approved. The ENF director, Yves La Rose, took to Twitter to declare victory.

“Through a super majority consensus, the EOS network has taken its future in its own hands. This begins a new era for EOS and highlights the power of the blockchain to enable a community to stand up against corporate interests that don’t align with theirs.”

The community spoke. They will roll back and block the 67M EOS that Block.One had coming. How does that put them regarding the EOS network’s intellectual property? Do they have any chance of getting that IP now?

Featured Image by Valentin Salja on Unsplash  | Charts by TradingView


Tagged : / / / / / / / / / / / /

Argo Blockchain mines record 597 BTC during Q3 2021

Cryptocurrency mining firm Argo Blockchain has just released its Q3 financial report detailing record setting revenues for the period.

The London headquartered company reported that it had mined 597 BTC and “BTC equivalents” during the third quarter of 2021. At current prices, Argo’s Bitcoin haul would be worth roughly $36.5 million.

As of Sept. 30, the firm had amassed holdings of 1,836 BTC (roughly $113 million at current prices).

Argo also reported a gross margin of 120% and a mining net margin of 85%, estimating it cost the firm just $6,293 to mine each Bitcoin on average. Overall, the firm generated a record revenue of $26 million and pocketed $17.3 million in net profits.

For the nine months ending on Sept. 30, the firm’s revenue and net income were $67.9 million and $27.1 million respectively. In the first half of 2021, Argo reported a revenue of $42.3 million.

CEO Peter Wall attributed the profitable period to growth from its Helios facility in Texas and Sept. 23 IPO on the Nasdaq, stating:

“From breaking ground on our sustainable cryptocurrency mining facility in Dickens County, Texas to our public listing on Nasdaq in the United States, this quarter has been pivotal as Argo continues to scale,”

In March, Argo purchased a 320 acre plot of land in Texas to expand its mining operations and provide it with 200 megawatts of renewable energy. In August, the company claimed that its crypto operations had become “climate positive” for a number of greenhouse gas emission categories.

Related: Industrial Bitcoin mining breathes new life into tiny Texan town

On Sept. 30, the company entered into a purchase agreement for 20,000 Bitmain Antminer S19J Pro machines for the new facility. Delivery is expected in the second quarter of 2022 and the new hardware will increase Argo’s total hashrate capacity to around 3.7 Exahashes, up from 1.07 at the end of Q3, 2021.

On Sept. 10, Cointelegraph reported that Argo had secured a $25 million Bitcoin-backed loan from venture firm Galaxy Digital. This follows a similar BTC-backed loan for $20 million it secured in June. The funds will be used to further develop its Texas facility.