EOS CTO Proposes to Rewrite Project's Constitution

Dan Larimer believes that current constitution vests too much power at the hands of arbitrators
28 June 2018   1149

Just a few weeks after the launch of EOS, the chief technical officer of the project, Dan Larimer, suggested changing the project's constitution, Bitcoinist reports.


As you can see on the screenshot above, the conversation took part in Telegram channel 'EOSGov'.

According to observers, the current EOS Constitution gives arbitrators too much authority. At the moment, all smart contracts on the network must be documented with the help of Ricardian Contract, indicating the intentions of all parties and an arbitration forum that will resolve disputes.

Arbitrators are able to resolve disputes directly, and the scope of their powers is not defined. Larimer proposes to limit their powers by addressing issues related to differences between the Code and intentions, as well as the handling of vulnerabilities and hacking of code.

At the same time, if Larimer decides to rewrite the supreme law on his own, he will have to follow the procedures set out in the Constitution. Otherwise, this would confirm the centralization of the project.

There is no clause in the Constitution that would describe such a situation. Closest to it comes Article XIII:

This Constitution and its subordinate documents shall not be amended except by a vote of the Token Holders with no less than 15% vote participation among tokens and no fewer than 10% more Yes than No votes, sustained for 30 continuous days within a 120 day period.

Eos Constitution

In other words, if his proposal is put forward right now, the Constitution can be replaced after 120 days.

This can be more difficult than it seems at first glance. Earlier, EOS took two weeks to vote for the manufacturers of blocks.

EOS Dev to Make "Blockchain Governance Proposal"

One of the main parts of the proposal by Dan Larimer is that only tokens blocked in a long-term stake contract be given the right to vote
16 October 2019   169

Dan Larimer, technical director of Block.One, the developer of the EOS protocol, has published proposals to improve decentralized network management and increase the reliability of block manufacturers.

The purpose of blockchain governance is to make decisions in the best interest of as many people as possible while minimizing the opportunity for a small group of people to act in ways that benefit themselves at the expense of the community.

Daniel Larimer

CTO, Block.One

In particular, Larimer proposed that only tokens blocked in a long-term stake contract be given the right to vote. The income from it should compensate for the loss of liquidity and be proportional to the duration of token blocking. To this end, Larimer considers it appropriate to introduce a system of market interest rates similar to US Treasury securities.

U.S. Treasury Yield Curve
U.S. Treasury Yield Curve

According to Larimer's proposal, it is necessary to create six staking pools that block funds for: 3, 6, 12 months, 2 years, 5 and 10 years. Users will receive revenue in proportion to the share in the pool. The weight of the vote is calculated by the sum of their shares in each staking pool.

The withdrawal of tokens will be possible no more than once a week and at interest, for example, for 3-month and 10-year terms, withdrawals will cost 7% and 0.2% per week, respectively.

Transferring tokens from a short-term pool to a longer one will be unhindered. The reverse operation is again possible only with interest.

According to Larimer, his proposed system of staking will establish a yield curve based on the balance of the desire for power and higher profits. Few will want to give up liquidity for 10 years in order to obtain greater profitability and power, but for the period of 3 months, with lower income and influence, the majority will agree, he said.

Elections of 21 block manufacturers Larimer proposes to conduct on the basis of the principle “one token - one vote”. The remuneration of producers should be 0.5% of the annual issue and determined in proportion to the votes received, and not on a block basis. The maximum annual inflation of tokens is assumed at 3.5%.

To stimulate reliable production of blocks, voters (stakers) will be punished by falling profitability for skipping blocks by the manufacturer. For example, if the reliability drops to 97%, the yield will already be 73% of the maximum.

Larimer believes that the proposed changes, first of all, will not allow exchanges to vote with user tokens. Smaller players will be able to gain additional influence and high profitability by participating in long-term staking pools, which will increase the decentralization of network management. In addition, it is likely that even the smaller of the block manufacturers will be forced to provide high reliability.

Since tokens from staking pools will not be able to get on the EOS Resource Exchange (REX), this will increase its throughput. REX profitability will be determined by the shortest 3-month pool, which stimulates the transition of users to them. Also, REX tokens will not receive voting rights, Larimer emphasized.