Scandalous Constitution of the EOS. Long-term investors is under threat

Scandalous Constitution of the EOS. Long-term investors is under threat

If you bought the EOS with the intention of becoming a long-term investor, then perhaps you should reconsider your plans. According to the Constitution project, if your account is inactive for 3 years, it can be put up for auction.

EOS project, which has collected $ 4 billion a year for its ICO, has published a number of rules in a document called the Constitution. Rumor has it that this is just a proposal and that the community should EOS to ratify it, but at the beginning of the document says:

This Constitution is a multilateral contract entered into by the community members of the blockchain.

The lack of definitions and the many contradictions

The document, posted on GitHub, are the authors of two people – Thomas Cox, Vice President of Block.one and Danial Larimer, chief technical officer (CTO). Nevertheless, any who are engaged in a close examination of the document, even without legal training, there will be many questions.

The questions start right from the first sentence given above as the definition of the term “member” in the document.

Article XIII of the Charter of the EOS reads as follows:

This Constitution and documents under its jurisdiction may not be changed except by a vote of the owners of the tokens. Vote must receive at least 15% of all owners of the token, in this case the solution is accepted only if the number of votes for any option exceed the other options by more than 10%. The vote must pass 120 period, but directly voting occurs within 30 days (with no breaks).

With 10 locations in the network own 50% of all token EOS. Theoretically, 10 of them have full constitutional freedom, and can therefore change the basic law as I want.

For example, they can jointly decide who will be the “member” and who is not. But they can at any time to change the definition.

It is logical to assume that a member is anyone who has a certain number of token EOS, but what amount you need to have is unclear. And there remains a risk that this amount will often vary in accordance with the purposes of the above 10 subjects.

Immunity for developers

Article XVIII of the Constitution States:

The members agree that the developers are not responsible for bugs and errors, regardless of whether or not the above-mentioned errors due to actual or perceived negligence.

First, the terminology used in this article of the Constitution, makes it extremely difficult to read and understand. Moreover, I do not understand what is the difference between “actual” and “alleged” negligence.

Even if you omit all the legal aspects, the fact that the Constitution removes all responsibility for errors and bugs from the developers is extremely alarming. Especially in light of the definition of “developer”:

Each member, creating a smart contract on the blockchain, should be considered by the developer. – Article VIII of the Constitution.

Long-term investors

Article XVII of the Constitution of the EOS reads:

Member is automatically released from all obligations in accordance with this Constitution within 3 years after committing the last transaction. After 3 years of inactivity the account can be auctioned and the proceeds distributed among all the Members.

It is obvious that the framers of the Constitution thus tried to encourage the use of tokens. However, this article also poses a threat to all investors who invested their money in the project only for investment purposes.

In addition, it suggests that the leaders of EOS, for any reason, exclude the possibility of active participation of long term investors. It should be noted that the traditional constitutions also punish inaction. However, this only occurs in cases when the specified omission that causes or could cause harm to other people.

However, the basic law EOS there’s no explanation for why inaction should be punished.

This is an incomplete list of shortcomings and contradictions of this document and although EOS New York claims that this is just a suggestion, in the document itself never says it’s a proposal.

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