New scandal around EOS: corruption among block producers

In the crypto community of EOS, a new scandal related to corruption broke out. Block.one, which supports EOS, is trying to fight off attacks. The ill-wishers say that the Chinese crypto-whales have united to maintain control over the blockade.

Last week an anonymous source merged an internal document with rather sinister accusations. It says that "collusion, general voting and payment for this" is a common place among the block producers of EOS. And among them is the crypto-exchange Huobi.

The essence of the accusations is that Huobi and other powerful producers jointly vote for each other to maintain status and secure passive income. Further in the document it is stated that the exchange received EOS tokens for its voice.

Huobi denies all links to such transactions related to the election of EOS block producers. The crypto community has become so active and loud that the rest of the producers and CEO of Block.one Brendan Blumer also had to publish statements on this matter.

Blumer recalled that the EOS system is still "in the manger".

"We are aware of some unconfirmed statements regarding dishonest voting. Block.one considers it important to ensure free and democratic elections in the EOS system. The company can vote along with other holders to support the process. We are continuing to work on making the voting even more transparent. "

EOS uses the consensus model of the Delegated Proof-of-Stake. The point is that investors get more influence in voting when deciding who will crush the blockade. Bitcoin works on the consensus of Proof-of-Work and awards the miners, depending on how much processing power they have provided to the system. EOS has the right to add blocks to 21 candidates through a "democratic" vote.

At the moment, the Huobi Mining Pool is considered to be the third-largest block producer and buys 833 EOS daily (or $ 4,700 at the current rate). Producers are also paid "on security", even if they are not actively mining.

If the rumors turn out to be true, the voting system will be compromised. The block-producers of EOS Alliance insist:

"The voting system of EOS is based on timeless principles of fairness and uses a documented, honest and open process."

The situation remains unclear, nothing has been proved yet. But it's worth noting – this is not the first scandal around the EOS blockbuster.