I am extremely excited at the opportunity that EOS brings to the table. A blockchain based OS which makes usage of blockchains as easy as building web applications is going to have humongous potential. That’s a no-brainer. This has earned EOS the nickname of Ethereum Killer.
However, I am not a programmer. I am a crypto investor and want to invest in something that has the potential to be in business for at least the next 5-10 years. The technology behind EOS seems solid. I have a few questions about the behaviour of EOS tokens and the ROI on them. If someone more technical who understands EOS can answer the following questions.
“Ether” is the gas on the Ethereum network. All applications built on Ethereum need to pay in Ether to run applications on Ethereum. This fact would theoretically create a demand for Ether in the future and keep its prices up. Does EOS have some kind of a similar plan?
An excerpt from the https://eos.io/faq.html page under the question
“What features, uses or attributes do EOS Tokens have? Can the EOS Tokens be used on a blockchain adopting the EOS.IO Software?”
says “The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform.”
If this is so, then what purpose does the EOS token have exactly? Is it only for the development of block.one network, as specified on the the https://eos.io/faq.html page?
Why should I exactly invest in EOS tokens? What is it exactly that will give me a return on my investment in the long run?
You can't quote the EOS legal docs to determine the functionality... basically that statement was to prevent lawsuits so they are saying, "EOS does nothing, and is worth nothing." This is an untrue statement, but they make that radical statement to protect themselves from future lawsuits, especially in odd cases like the project failing after the ICO. If they make no guarantee the token will do anything and if the project fails, they can point to that line of legal docs and say, "We never said it would do anything."
In fact, the EOS token will do something on the proposed system they are building. What the EOS token does is it has 'emission'. Unlike Ethereum, EOS will not have any Gas. EOS tokens have emission. Emission is not EOS tokens.
What emission permits a person to do is to run an application on EOS. App developers in the future will be able to calculate the quantity of on-going emission needed to fund their smart application on EOS. Then they can either buy emission from other token holders that have extra emission (rental model), or they can buy enough EOS to permanently fund their EOS application indefinitely (asset model). If a contract application on EOS takes 10 tokens to permanently fund, then that developer could perma-fund the contract for themselves and users by simply investing in 10 EOS tokens.
This makes EOS free for users, and very convenient for app developers in the future.
This issue was answered by Dan on the presentation he gave on EOS. Ignore the legal lingo is my suggestion. My guess is many of you are not in the USA. In the USA, everything we buy has legal disclaimers on it which all US citizens promptly ignore. That stuff only matters in terms of protecting people from lawsuits, often what it says is false for all practical purposes until people arrive inside a courtroom.
Is it implied that emission can run an app indefinitely into perpetuity? How is that possible with things like energy costs and computing power needed for hosting an app? I'm trying to figure out the use case and potential value for the EOS token. Should I almost think about it as the iOS App Store? Where a dApp dev would pay the App Store to host their app? If this is the case, then is the value of an EOS token the value predicted by how many dApps to be hosted on the EOS platform? Am I way off base?
If you have a link to the Dan EOS interview I'd appreciate it, too. Perhaps that can answer my question.
thanks.
Actually I am a beginner in the crypto so I could not answer you. In any case I will follow your blog because you seem very friendly and I like your style of writing. Good job
Thank you! :)
Kindly resteem this post so that someone from your network might have a look and answer this question.
I saw a similar question posted at Reddit:
Unfortunately, no clear answers yet.
It's so sad. The technology looks so promising. The EOS team could have just found some other way to raise money for the project, or attach some sort of value to the tokens, for people they are going to raise money from. Alas! There's none.
I'm holding little EOS as well and looking for same answer. What's the future of the token?
Hi, thank you for sharing, I'm following you ^^
Hi, thanks! Please re-steem this post too, so that we can get someone to answer this question. I am really looking forward to an answer.
For some reason I can't resteem your post.... ?!