EOS (EOS) will be confiscating tokens that are being HODL for too long 12595
Altcoin
Pinaz Kazi
Jun 13, 2018 at 9:57 AM

EOS (EOS) might not be the best cryptocurrency for you if you like to HODL it for long or forget about it for years. The accounts of the EOS blockchain members would be terminated if they do not use their tokens to use for three years.

What happens to the terminated accounts?

The company behind the EOS network, block.one has mentioned in the blockchain platform’s constitution about it. So, what will exactly happen to those accounts? Well, such accounts will reportedly be put either on auction or the amount lying on the inactive accounts will be given to the rest of the holders.

According to TheNextWeb, the constitution says that the distribution of the amount will be based on the system contract provisions then in effect” for such event.” Currently, the draft related to HODLing (Article XV), mentions that a member of the blockchain automatically will be released from all revocable obligations under this constitution, three years after the member’s last transaction. Inactivity in an account for three years might put the account for auction and the amount will be distributed to the EOS members.

The EOS platform is a decentralized operating system with computing resources which are accessible through EOS tokens. And, the holders are supposed to use the tokens to build dApps and communities by staking tokens for CPU, RAM, Network, and finally storage. However, if some user stakes something such as CPU but if the resource is not used by any smart contract or any other computation action, then again, the user will be considered to be violating the Article XV.

Co-founder of EOS New York and a leading block producer candidate, Rick Schlesinger told the website the reason to keep this controversial rule is to make sure that the platform does not deviate from its intended utility. As long as the user is utilizing the resources, staking, and performing actions, the Article would not be violated.

Image via shutterstock

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