How Cartels May Control EOS and Fundamentally Threaten its Survival

There is evidence that a small group of block producers control the entire EOS network.

If these block producers are colluding, then that group can control the EOS protocol to their whim.

At its core, the parties that validate transactions and run the underlying EOS software are called 'block producers'.

These block producers manage huge industrial servers that manage the majority of the underlying computational power on the EOS network.

To incentivize participation as a block producer, those who are selected are rewarded with a substantial number of EOS tokens.

In addition to the financial incentive, block producers are also given enormous power in the EOS network.

Because block producers are voted into position using EOS tokens, there is a strong incentive to hold tokens and vote for themselves.

There is evidence that Huobi voted for a block producer in exchange for 150 EOS and 50 percent of any earned returns.

By analyzing EOS voting patterns, watching wallets owned by the current block producers, and the correlation between votes for different candidates it is possible to deduce the alliances within the EOS system.

How Block Producers Could Destroy EOS. What is alarming is that incumbent block producers have the power to cement their positions.