Created in 2017, EOS is the native cryptocurrency of the EOS.IO blockchain protocol. The platform offers smart contracts and decentralized applications (DApps) like Ethereum, Cardano, and Polkadot.

 

Block .one

The administrator of EOS is a private company called Block .one. The company was founded by Brenden Blumer and Dan Larimer, and it is a software firm specializing in blockchain technologies with 80 employees.

• Block. one is one of the largest Bitcoin investors, owing 140,000 BTC worth today an estimated $5.6 billion.

 

The 2017 4 Billion Initial Coin Offering

EOS was created by Dan Larimer (Bitshares and Steem) and it is fully administered by Block .one. Larimer announced his resignation from his position as CTO on Block .one, in early 2021.

During its 2017 ICO, EOS raised a record of 4 billion US Dollars. Note, that in September 2019, Block .one agreed with SEC to settle charges related to the unregistered ICO for a $24 million penalty. The settlement is good news as many 2017 ICOs face problems with SEC, as Ripple.

 

EOS Ecosystem (EOS.IO and EOS)

 

The EOS token is the native cryptocurrency of the EOS ecosystem. The EOS ecosystem includes two components:

• EOSIO, which is the software (operating system) that handles and controls the EOS blockchain network

• EOS, which is the first network running EOSIO software

 

Key Features of the EOS Protocol

These are some key features of the EOS Protocol:

1. Smart contracts and DApps are fully supported
2. EOS architecture enables vertical and horizontal scaling of daps
3. EOSIO uses a DPoS (delegated proof-of-stake model) technology, first developed by Dan Larimer
4. EOS block producers earn tokens from inflation
5. EOS holders elect block producers (by staking)
6. DApp developers stake EOS to gain access to hardware resources such as RAM and a CPU

 

Transaction Per Second (TPS)

The EOS network can typically process 2,000-3,000 transactions per second (TPS), and currently, is the fastest DApps network. In the future, EOS also claims to have the ability to support millions of transactions per second.

Other blockchains:

• Cardano, 1,000 TPS

• Stellar, 1,000 TPS

• Ripple, 1,700 TPS

 

Advantages / Disadvantages

The advantages of the EOS include 2,000 TPS, cheap gas fees, and DApp scaling capabilities. The key disadvantages of the network include the lack of full decentralization and some inefficiencies as concerns the general structure of governance.

Advantages:

• High-scalable decentralized structure

• 2,000 TPS

• Free transactions for the end-user

• User-voting governance model

• Very strong financial structure

Disadvantages:

• Not-fully decentralized

• A limited number of users

• Developers have to pay for transaction bandwidth

• There are some key governance issues to be solved

 

 

EOS Supply and Inflation

Typically, EOS inflation was 5%:

■ Max Supply: 1,029,840,037 EOS

■ Circulating Supply: 953,672,958.33 EOS

The 2021 Proposal

According to Block .one 2021 proposal (Stake-Based Voting and Rewards Mechanism March 2021), the following guidelines are provided for consideration by the EOS community:

• Overall system inflation rate: 1.2% to 3.8% annually.

• Block Producer share of inflation: At least 32% of total inflationary rewards

• Staker share of inflation: At most 68% of total inflationary rewards, depending on the rate of overall inflation

• Withdrawal limitations: A withdrawal cadence of once every 7 days, with a per-withdrawal limit of 67% of staked funds

 

Image: Comparing Inflation on several Cryptocurrency Projects

  

Major DApps Built on EOS

These are the most popular decentralized apps built on the EOS blockchain:

• ZCore Finance (4,200 users, volume 5.0 million)

• Newdex, a DeFi cryptocurrency exchange (4,350 users, volume 47 million)

• DefiBox, a professional one-stop DeFi application platform on EOS (7.200 users, volume 146 million)

 

New Exchange Based on EOS Blockchain

Block .one, recently announced the creation of a cryptocurrency exchange in the second half of 2021. The new project is called BULLISH and enjoys the support of famous crypto investors like Peter Thiel, Mike Novogratz, Alan Howard, and Louis Bacon.

The BULLISH will be based on the EOS blockchain and the market capitalization is estimated at 10 billion USD. Services include:

• Lending

• Portfolio Management (retail and institutional traders)

• Market-Maker

Block .one CEO Brendan Blumer said: “The Bullish exchange will leverage blockchain technology and a new market architecture to revolutionize the high-performance trading landscape by transparently automating expensive third-party functions and turning them into yield-generating portfolio management tools to offer institutions and individuals better and safer access to the latest cryptocurrency investment strategies”

 

EOS Chart

The following chart includes EOSUSD on a weekly timeframe, plus the RSI Precision. We can see key support and resistance levels. Historically, 2.90 USD is a very descent price for accumulating EOS.

Chart: EOS Logarithmic Chart & RSI Precision (TradingView)

 

Source:

• Block .one - Stake-Based Voting and Rewards Mechanism March 2021

https://eos.io/wp-content/uploads/2021/04/Block.one-Stake-Based-Voting-and-Rewards-Mechanism-March-2021.pdf

• DApps:

https://dappradar.com/rankings/protocol/eos

• TPS:

https://www.oobit.com/blog/comparing-cryptocurrencies-transaction-times/

 

□ EOS Token Basics

ExpertSignal.com (c)

May, 25th, 2021