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EOS mainnet live but decentralization questions remain

Is EOS as decentralized as people think?

EOS mainnet live but decentralization questions remain June 16, 2018Leave a comment
eos decentralization problems

The EOS blockchain is now officially live and has produced its first blocks after reaching the 150 million tokens needed to validate its mainnet.

The initial voting process resulted in the election of 21 block producers—the decentralized teams that will govern the EOS blockchain. But while the block producers appear to be evenly distributed across the world, a closer look at the voting stats seem to suggest otherwise; calling into question EOS’ mission to “decentralize everything”.

Not so decentralized?

As one eagle-eyed Redditor discovered via EOSstats.io, Bitfinex received over 50% of its vote from just four voters, with the top voter accounting for 27% of all votes.

eos block producers world map

And this isn’t the first time EOS has been called out for its lack of decentralization. According to a report by Trustnodes, 50% of all EOS tokens are held by just 10 addresses, and 1,000 addresses account for 85% of the total amount of EOS tokens. So much for decentralization.

The EOS whale problem

However, EOS is not the only altcoin suffering from a whale problem. The top 100 Tron (TRX) wallets control over 88% of the market.

EOS is the fifth largest cryptocurrency by market capitalization, with a market cap of $9.8 billion, and is currently trading at €11.04. Following in the footsteps of Ethereum Classic (ETC), there are many reasons why EOS could be the next coin listed on Coinbase.

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