The EOS Worker Proposal System (WPS) is a method similar to that implemented by Dash. The initiative got the first of four possible approvals for its implementation.
A new scheme to finance EOS-related projects received the first of four possible approvals from 34 block producers. The acceptance comes amid a series of criticisms since the new mechanism would not have an effective method to measure the risks of the initiatives.
Block producers EOS Nation and Attic Labs jointly introduced the EOS Worker Proposal System (WPS). Of the 21 major block producers, 19 voted in favor of the proposal, the minimum being 15 votes.
EOS Nation reported that the voting represented token holders’ will and they are now moving forward with the next steps to implement WPS in EOS. The second step that the block producer discusses is approving the transfer of 50,000 EOS tokens from eosio.names to eosio.wps. The third phase would be to implement the WPS smart contract in eosio.wps, to finally initialize the new governance system.
The rules codified within WPS smart contracts govern this decentralized voting and distribution mechanism, allowing any EOS account to propose a budget for their specific project, according to EOS Nation. They added that block producers chosen by token holders will be in charge of voting on them. They explained that each proposal that passes receives a direct payment from eosio.wps to the EOS account that proposed the work.
Those wishing to submit a draft proposal must pay a non-refundable commission of 100 EOS to eosio.wps. The maximum budget will be 25,000 EOS, which will be available for each 30-day voting period. The funding for eosio.wps comes from fees accrued on the eosio.names and eosio.ramfee accounts.
For a project to receive financing, it must undergo the planned multi-signature (MSIG) approval process. It is a four-stage system, like the one implemented for the approval of these changes, in which at least 15 of 21 of the main block producers must give their approval. If the proposals are scalable or expandable, then they must receive at least 20 positive votes.
Criticism of Changes
Before receiving approval, Brendan Blumer, CEO of Block.one, the company behind EOS and developer of the EOSIO protocol, was concerned about the possible effects of the mechanism on the network.
According to Blumer, socially authorizing block producers to direct token holders’ funds to projects without a clear or measurable return on value is risky and can open the door to corruption and external scrutiny. He believes that decentralized financing is new and exciting and is in favor of specific projects that explore how such models can compete with legacy models. However, he thinks that their lack of sustainability, applicability and measurable returns can lead them to a bad prognosis.
The mechanism to be incorporated into EOS governance is similar to the one that Dash, jointly with the Dash Investment Foundation (DIF), approved last year. The DIF belongs to the Dash network, in which the community votes through the master nodes in favor or against the proposals submitted in the DIF.
At the time of writing this article, the price of EOS, the cryptocurrency associated with the project, was USD 2.25 per unit, with a negative variation of 1.24% in the last 24 hours, according to data from LiveCoinWatch.
By Alexander Salazar