User Funds Frozen By Eos Blockchain Producers, Results In Twitter Backlash

User Funds Frozen By Eos Blockchain Producers, Results In Twitter Backlash

A Steemit post by a Blockchain producer candidate, EOS42, has revealed that seven accounts have been first by EOS. The reason for the freeze has been said to be due to the accounts having been compromised in the registration process.

The Backlash After The Fact

This news has been received by a fair amount of disappointment and backlash, with many people accusing the Blockchain producers of violating their constitution. Nick Szabo, a Crypto enthusiast, even went on to say that in EOS complete strangers have the ability to freeze the users’ money while the users are expected to trust a constitution organization that they will never meet. He went on to stress that the EOS constitution was socially unscalable as well as a security hole.

The freeze was made possible by the EOS911 initiative which was designed to be of help to EOS phishing attacks victims and users with compromised keys.

EOS Blockchain Producers’ Decision

This decision was reached after a two-hour deliberation over conference calls. The EOS producers came to the freeze decision seeing it as feasible due to the EOSIO constitution having not yet rectified which allowed them to by-pass ECAF’s (EOS Core Arbitration Forum) standing on not allowing the freezing of funds.

The fact that the decision was reached by a small number of individuals over a conference call is what has many Crypto enthusiasts and influencers questioning EOS’s decentralized format. Charlie Shrem in his tweet said that the whole point of Bitcoin was so that no man could be in a position to reach such a decision. Nor that of punishing anyone because that would essentially be swapping one state for a digital one.

Another tweet poked fun at the freezing decision, going on to say that one could not make up comedy that good.

Acting As Both The Judiciary And Executive

EOS New York has defended the decision citing that the ECAF’s failure to deal with the situation forced the Blockchain producers to act with the evidence that was before them. It has however noted that though the Blockchain producers were forced to act as the executive and the judiciary in that particular situation, that was not the role that was meant for them. It has stated that the accounts were frozen for the good of the governance system it seeks to create, even with it not being formally present.

The ECAF has requested for the funds to remain frozen in the meantime while the EOS New York has stated in writing that should the ECAF fail to submit a formal ruling, the funds would be released.

The EOS911 was created to help those who had their keys compromised. The victims would be able to conduct a transaction into it to ascertain proof of ownership. This transaction would then authorize Blockchain producers to freeze any EOS accounts that are linked to ETH. This, however, is only possible for the victims who are aware that their funds have been sent.

June 20, 2018

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Samantha Mitchell

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