Block.one CEO Criticizes EOS Worker Proposal System

Brendan Blumer, the CEO and co-founder of Block.one — the company behind EOSIO (EOS), took to Twitter to express his concerns regarding the suggested ‘EOS Worker Proposal System’ (WPS) on March 15.

Developers at EOS Nation and Attic labs revealed details about the WPS in a YouTube video on March 9.

WPS developers seek support from Eos block producers

Currently in testnet, the WPS allows EOS token holders to suggest or vote on funding proposals. After a 30-day voting period, funds will be distributed to winning proposals through smart contracts.

The WPS developers are currently seeking support from Eos’ 21 block producers.

Block.One CEO: many DeFi project have a “bad prognosis”

Despite expressing his gratitude towards those working on the proposed system, Blumer tweeted that he is concerned about the kind of impact the WPS may have on the EOS network.

He warns that authorizing EOS’ block producer to direct token-holder funds toward projects “without a clear or measurable return of value” carries many risks, including “open[ing] the door to corruption and external scrutiny.” Blumer states:

“Further, the WPS system may alienate EOS from some others in the blockchain community and media, and therefore potentially stake it’s future largely on the success of the WPS system itself. I am concerned about the risk profile and odds of this bet.”

Though he expressed his support for “specific projects” in the decentralized finance (DeFi) space, Blumer believes that “without sustainability, enforcement capability, and measurable returns,” many DeFi projects have a poor prognosis.

WPS proposed in original Eos whitepaper

The WPS was first described in the original EOS whitepaper, published in 2017. It has taken two years to gain traction as a proposal, however, as the community waited for EOS’ inflation to drop to 1%.

50,000 EOS have already been designated for WPS — currently worth roughly $95,000. This may be increased to 75,000 EOS ($142,000) in future.

Eos users seeking to request funds for a project will need to pay a 100 EOS fee and conform to voting and budgetary standards to prevent spam.