- Yves suggests EOS token holders initiate a class-action lawsuit against Block
- Block "does not and never had" any intention of investing the $1B promised in EOS
Yves La Rose, the CEO of EOS Network Foundation, announced measures to hold Block.one responsible for failing to invest in his platform in a Twitter thread. Yves suggested EOS token holders and block producers initiate a class-action lawsuit against Block.one to seek compensation for the damages caused.
Never any intention to invest
Participants in the EOS Network will recall that Block.one (“B1”) promised significant investment in the EOS Network during the initial coin offering of the ERC-20 token and after. In January 2018, at the height of the ICO, B1 promised it would invest $1 billion from ICO proceeds to promote and develop EOSIO. B1 has provided minimal real support to EOS efforts to develop the network. It has become apparent that B1 does not have and never had any intention of investing the $1 billion promised in EOS Network.
The CEO of EOS went on to write that EOS token holders were cheated twice: the first time when they bought the initial ERC-20 tokens and again when they bought tokens for use on the EOS Network.
Two ways out
Yves wrote that the EOS Network is undercapitalized and its development has been significantly stunted as a result of B1’s broken promises. He suggests two options:
Legal action
EOS token holders, especially block producers, should consider taking legal action against B1 for breaking its promise to invest in the ecosystem. Had it occurred, that investment would have greatly improved the functionality of the EOS Network and increased the value of EOS tokens.
He thinks a collective lawsuit is possible if enough token holders are interested in making a legal claim and assures the EOS Network Foundation will help token holders advance such a claim against B1.
Hard fork to exclude B1 tokens from EOS
The alternative suggested by the CEO of EOS is for network block producers to initiate a hard fork to exclude B1 owned tokens from EOS token trading. This would result in a lower outstanding volume of EOS tokens. It would also have the effect of dissolving the EOS Network’s association with B1.
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