EOS Network Participants May Take Action Against Block.One Following ‘Failed Promises’

B1 has failed to invest a promised $1 billion into the EOS ecosystem, Yves La Rose, the CEO of EOS Network Foundation says

article-image

PBXStudio/Shutterstock, modified by Blockworks

share

Yves La Rose, the CEO of EOS Network Foundation, the hub behind EOS Network — a layer one blockchain designed for large-scale decentralized applications — has urged community members to consider taking legal action against Block.One (B1) after the company failed to provide promised investments.

In an initial coin offering (ICO), B1 committed $1 billion of its proceeds to developers who would expand EOSIO, its own open-source protocol based on EOS designed to reduce transaction speeds and costs drastically.

The understanding at the time was that these investments would be made within the EOS Network itself, but it was apparent that this was not the case following a series of allegedly unfulfilled promises following the ICO, La Rose noted in an open letter to B1. 

“As time has passed, it has become apparent that B1 does not have and has never had any intention of investing the $1 billion promised in EOS Network,” La Rose wrote in the open letter.  “EOS token holders relied on B1 promises when they purchased the initial ERC-20 tokens and later when they purchased EOS Tokens for use on the EOS Network.”

La Rose has prompted community members to take matters into their own hands, proposing to either take legal action against the private company or consider a hard fork to exclude B1-owned tokens, fully separating from the company.

Due to the lack of clarity provided by B1, La Rose notes that “we can only conclude that B1 never intended to make the investments it promised.”

“If enough token holders are interested in making a legal claim, a class action lawsuit is a possibility. The EOS Network Foundation is prepared to assist in bringing EOS token holders together for the purpose of advancing a claim against B1,” he said.

Hard forking the network to separate EOS Network from B1 completely is also on the table.

“​​This would have the effect of decreasing the outstanding volume of EOS tokens. More importantly, it would have the effect of fully separating the EOS Network from its association with B1, driving further confidence in the EOS Network,” he said.

Although a final decision has yet to be made, La Rose notes that a decision should be made as soon as possible.

EOS Network Foundation and Block.One have not responded to Blockworks’ request for comment in time for publication.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

As part of the #Breakout2024 plans, Radix has introduced Token Trek

article-image

House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January

article-image

Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do

article-image

And, weeks of a potential crypto ETF decision are no stranger to chaos

article-image

The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month

article-image

More than half of Solana transactions fail