13 Reasons Why EOS is a disaster
1.) ECAF ordered to freeze the hacked accounts, blockchain isn't immutable. many both inside and outside the EOS community aren't clear what ECAF, the main body tasked with resolving disputes between token holders on the network, is and what control it has over transactions. ECAF has lost it's ability to rule on the base chain after EOSNY stated that they'd no longer enforce off chain rulings.
2.) Dan threw out the constitution because it was socially unscalable. The constitution is being resubmitted based on the problems with ECAF.
3.) RAM over-speculation, it currently costs $14 and growing to create an account. Whales cornered the RAM market. BP's had an open conference yesterday where they discussed a constant drip of new RAM to the system to put downward price pressure on the market.
4.) Centralized – just 21 BP's that can vote each other in, plutocracy. It takes just 17/21 BP to achieve consensus. Block.one, who claimed to have no involvement in the launch of the EOS mainnet are now going to use the 10% of the token supply they own to influence the list of block producers. Dan also owns a large amount of the token supply and voting power. Some of these block producer candidates in the top 10 came out of nowhere. How they got in the position they are in is pretty obvious – they had a lot of tokens (or access to them) and voted themselves in. It's a whales' election.
5.) Cartels – BPs are already forming cartels. Many know each other from the video conference call. Cartel formation enables them to print money and keep themselves in power by voting for each other and buying votes. They can also censor or reverse transactions. BPs are accumulating EOS and it gives them a stronger vote over time. Top 21 are currently earning about $10,000 more EOS per day.
6.) 5% inflation replacing TX fees (they aren't being clear about the trade-off ) BP's collect 1% of inflation, and 4% goes into the community savings fund. There are 21 active producers which share 50% of the inflation pool. 100 standby producers share the other 50%.
7.) if you dont vote within 3 years, your tokens get confiscated and redistributed too and you lose everything, can't just hold
8.) EOS launched without a testnet, huge security holes were found days before launch, the entire network shuts down if anything goes wrong
9.) Uncapped ico raising $4b and currently valued at $8b for accomplishing nothing yet
10.) Contributor's and foundation used the ICO as an arbitrage mechanism for a year, raising $20m a day through abitrage trading scheme
11.) Public figures like Mike Novogratz, and Brock Pierce are pumping and shilling it to their followers because they own a huge amount
12.) An EOS BP is just a corporate-owned server. It can be shut down with a subpoena or by governments
13) EOS is probably avoiding taxes. Instead of moving funds directly to exchanges, eos tends to obstruct slightly by first moving them to an intermediary account, then a second intermediary, then onto exchanges.