Suing the whale exchange for violating your voting rights?

The thinking and problems caused by the exchange vote

Exchange constituency of impact on node has caught the attention of the whole community and discussion, such a heavy position levels of the votes are in, makes the node ballot looks very strange, there are very few nodes large constituency and hoard the turnout was single more than 90% of the total votes.

As of draft date, the total number of votes cast by eos accounted for 26.9969 percent of the total votes cast, which was very low, far from meeting the "will" of the "majority" token holders.

According to http://eosnetworkmonitor.io/, the top 10 in the master node, there are four is exchange, at the same time they awarded a rights issue is also accounted for the biggest of all.

The process of guessing the vote went as follows: How are the top 30 nodes voting now? In this website (http://eos-bp-votes.dapptools.info/s/api/block-producer-votes-stack-html/1/30, shown here is the top 30 vote) to the vote of each node in the image can clearly see the bitfinex and zb this criticism let whole communities of exchange in which a few specific, now before the show has been and is slightly different, plus bitfinex losers wallet removed part of the vote, Perhaps because the public opinion and the community are too skeptical, it is worth thinking that if you vote and withdraw, it will not count. Can token holders vote on behalf of their clients when they are placed in an exchange's asset exchange? I think the answer is debatable and will be read further in a later article. As the article https://steemit.com/eos/@eoshenzhen/5c95tv-eos-eos for "rich people" -- how to comment on EOS voting.

Operation After Validation
The top 21 are likely to shift wildly, especially during the first hours and days. I expect that few token holders will be able to get activated and vote their staked tokens rapidly. The mechanisms to do this are difficult, and right now require obscure programs or command line execution using the full EOS client program. Very few users will have access to the tools and methods, and fewer will be motivated to learn and perform. We suspect that those who purchased the tokens for pure speculation will move slowly on this.

Thus, the opportunity exists for small groups of pre-registered EOS token holders to take rapid initiative and dominate early voting.

My best guess is that within a day or two, the early registrants will be actively voting, and the top 10-15 BPs will be entrenched, with the next 15-20 moving in and out of the top 21.

This may happen while the chain is not yet validated, in that there are not yet the required 150M votes. During this period, there are no inflation rewards, and no tokens may be un-staked or traded in any way.

Over the next month, contract holders will trickle in, and when they vote, will tend to cause movement in the 10-21 positions.

Big movements will happen as exchanges enter, both on their own account or user proxies, and via recommendations and tools provided to their user base. We should expect that exchange with large numbers of EOS contracts in their own accounts, and those now emerging as BP candidates, will be early to introduce web tools to make voting easier for their user base, or gather proxies from their user base for voting.

There is some danger for the exchange, in that the user tokens are locked up when staked for voting, and the implications of the lockup on liquidity may not be well understood by the speculative user base. I have often heard Korean EOS contract holders ask "what's in it for me to vote? Why should I lock up my tokens to vote for free".

To the extent that some BPs have friends and supporters who are long term holders of the tokens, they may have a massive advantage in gathering votes from such friends, particularly if they are able to assist others in registering their contracts, staking their tokens, and casting votes.

Exchange now entered the bitfinex, ZB the exchanges in only the second or third receipts warehouse can "support" the exact propped up a master node and several standby node, or if they want to "good relationship", can even cover 21 + voting positions > 0.48% of the nodes (BP more than 0.48% of total votes to enjoy inflation reward).

Block producers are rewarded for each block they produce, and so accumulate potentially 12 block rewards every 126 seconds. The exact rate of reward, for both active, top 21 BPs and for standby, reserve BPs, has been set in EOS Dawn 4.0 at 1%, with 0.25% awarded to the 21 active BPs for blocks produced, and 0.75% awarded to all producers, active and standby, based on their percentage of votes received. To gain the award from the 0.75% pool, the BP must be eligible for at least 100 EOS/day, which implies that they have received at least 0.48% of the total BP votes. Any BP candidate with fewer votes will not receive any EOS inflation rewards.

Some even called for token storage not to be kept on exchanges, but kept by themselves, for exchanges with large holdings and for several days of heavy losses.

"wake up? No one should vote for the EOS to the exchange. If the exchange takes a position to short the EOS, even if the EOS falls to a dime, the farmers will have meat to eat and the meat will be missed by wolves. As long as it is not an exchange, the nodes at the top of the ranking can vote. If you want the EOS to rise, please forward it more.

The exchange has raised questions and concerns in the community, and Dan has said this in the telegraph group:

If finds out about all the wrong transactions, block.one will use 10% of the shares. Exchanges are the basis of EOS flow. Users put money on exchanges because of trust, but if the exchange votes are false, it may be easy to hide, I will be more willing to support the young BP.

The majority of EOS "whale" level positions are held by exchanges

Above is the early data, but the main online, this kind of whale level positions is not particularly large changes, which according to the statistics of tokenclub, top 10 accounted for 47.6% of the total voting blocs, top 30 accounted for 66.02%, top 100 accounted for 75.07%.

As is shown in the chart, the top 100 wallets have 10 exchanges, accounting for 22.5681 percent of the total votes cast.

Bitfinex addresses have two seats in the top 100, ranking 3 and 61 respectively. Gate-io has three, ranking 13, 33 and 40. There are three COINS: 6, 15 and 67. The addresses of okex and bigone show that although there is only one in the top 100, they are all in the top 10, 5 and 8 respectively.

This situation is mainly caused by the support for EOS and the base of exchange users before the main network goes online.

In addition, there is another important reason is that it is well known that the EOS provids online time, like most speculation speculation will choose in the layout before, after a lot of selling, this part of the chip can do band in exchange and futures, this is also attract a lot of people will be the cause of the chips on the exchange, can be seen from the chart the third circle, the downside is basic to vote and EOS themselves do not understand, the behavior of the speculative people want to do.

In addition to the risk of saving private keys themselves and the ambiguous attitude of major wallets towards EOS airdrops, a wide range of token holders are also placed on exchanges for convenience.

Speculation on the sale of tickets and doubts on governance caused the phenomenon of selling

The escape of speculation ticket warehouse, the understanding and misunderstanding of governance and arbitration, as well as the reports of various unknown media, have resulted in large price fluctuations (as shown in circle 4 in the figure above). Doubts about the governance model, as well as the fairness and impartiality of participants, have also led to doubts about the success of eos and caused some selling phenomena.

Yochai Benkler, a law professor at New York university, is perhaps the greatest communications theorist of our time. He divided the communication hall into three layers, the bottom of which was the "physical" layer through which information was transmitted. The middle layer is the "logical" or "code" layer, the code that makes the hardware run. At the top is the "content" layer, which transmits real meaningful things over the Internet, including digital images, text, and so on. Now on EOS code and governance, it is the middle tier is free, BTC and eth just move on before the code to run, and the well-known eth also turn in the process of the pos in pow, v god also mentioned will join voted last year, this two days have the wind coming will join the arbitration mechanism, we tend to block chain is this world development inevitable arrival of a process.

It is necessary to understand and view the innovative mode of "governance" in a multi-dimensional way for practitioners, followers and token holders of the whole blockchain.

Is there no way to "control" BP's affairs on the big exchanges?

Chinese ,In this paper, the principles of community governance are described in detail.The answer is no. Update the eos constitution on Thomax Cox on (https://github.com/EOS-Mainnet/governance/blob/master/eosio.system/eosio.system-clause-constitution-rc.md

Chinese 。

Article IV - No Vote Buying.According to action-{{voterproducer}}, the exchange should prove that it has evidence of a proxy vote and that it has not accepted anything of value in exchange for a ticket.
At the same time, on github, eosio.system constraints（https://github.com/EOS-Mainnet/governance/）

In conclusion, under the above terms, if the exchange fails to prove that it has no interest binding, that bribery and assets are from customers, etc., it shall resign from BP.

Channels for complaints of perceived injustice in the community

Thomas cox, speaking at the zoom meeting of the Chinese governance group, said the Ecaf could be called in to complain if there were questions about the exchange's vote.Of course, the doubts about Ecaf have not been broken. At the same meeting, we also raised two core issues. First, there is not enough transparency and oversight of the Ecaf at the moment, he said. Second, Thomas believes that the biggest obstacle to governance right now is the lack of governance rules and awareness in the community. These are difficult and urgent, and it is possible to discuss the timing, fairness and impartiality of Ecaf treatment, and even whether it is suitable to serve as the arbitrator of eos.
Arbitration institution: ECAF（https://eoscorearbitration.io/）
The core content of arbitration is in：https://forums.eosgo.io/categories/dispute-resolution
Flow chart of handling common disputes

【EOS Gov】通过仲裁流程的例子看社区治理理念https://steemit.com/eos/@eoshenzhen/eos-gov
Governance map

6、Ecaf rules and arbitration procedures：Proposal for Rules for Dispute Resolution://forums.eosgo.io/discussion/1010/proposal-for-rules-for-dispute-resolution

7、Give an example of the arbitration process and details：A walkthrough of an EOS Arbitration saga https://forums.eosgo.io/discussion/1002/a-walkthrough-of-an-eos-arbitration-saga

8、Wps on ecaf funding related articles：Worker Proposal System (WPS) Charter Released
https://forums.eosgo.io/discussion/1474/worker-proposal-system-wps-charter-released

Governance is an important part of EOS, but not the only one. It is essentially a mechanism, a way to protect a system of assets on the chain. There is a solution to this compared to the large number of dead accounts and lost accounts. The whole chain of participants, BP and the responsibility of the candidate BP is the largest, itself of governance are very familiar with and participate in discussions and provide more opinions, each BP should reach the basic requirement of the constitution, but also make more than the basic basic requirements. Put forward their own opinions on the development of ecological whole, familiar with the process and channels, and eventually the entire network to do strongly does, to make it carry more high-quality project can truly make the value of the eos to the maximum.