On November 9, Coinbase, the cryptocurrency exchange, pointed out that the EOS blockchain was blocked due to EIDOS airdrops.
EOS blocked because of an airdrop
Coinbase posted on its blog that the exchange was having trouble dealing with customer transactions due to EOS network congestion caused by EIDOS airdrops. Since then, Coinbase hopes to solve this problem by increasing the number of pledge CPUs, ensuring that there is enough CPU time on the network to handle its transactions.
- Demystifying the airdrop ecology of “nothing to be born”: Some people bought a house, and some people got nothing.
- The founder left, the market value shrank by more than 300 million, what happened to the first empty coin in the currency circle?
- The small BM slipped faster than the BM, and the ENU founder “killed” the project and called for the 砸
Interestingly, before October 31, some participants purchased network resources—CPU, RAM, and NET. After the EIDOS airdrop was launched, this also caused the price of the network CPU to increase by 100,000% in 4 hours. The CPU time price is close to 7.69 EOS/millisecond.
According to Coinbase, on October 31, the EIDOS token was released based on EOS, and its airdrop activities required the transaction to be sent over the network via the smart contract of the token.
The exchange has launched the EIDOS/USDT trading pair on November 1st, and this token can be exchanged for this dollar stable currency.
In order to sell this token, the user rents the CPU time of the EOS network to increase the number of transactions processed by this blockchain. This in turn causes the EOS network to enter a congestion mode and limits the number of transactions that users can broadcast to the blockchain.
Activities related to EIDOS account for a significant portion of EOS network activity:
“At the moment, we observe that about 95% of EOS transfer activities are related to EIDOS contracts. Because each transfer counts the number of CPUs used in a block, the peak of the transfer operation causes the EOS network to enter congestion mode.”
During this time, it is difficult for ordinary users with relatively few CPU resources to send transactions. Despite this, the exchange also pointed out that this situation is only temporary. Coinbase expects that once the token is no longer profitable or the CPU lease expires after 30 days and the relevant users are not renewed, the network will return to normal. Coinbase also pointed out:
"It is important to note that the EOS protocol behaves as expected, but congestion mode prevents users from processing transactions that exceed their CPU load."
Airdrop is a pricing mechanism?
The Enumivo project (Avocado) is the predecessor of EIDOS, and it gives a very eye-catching reason for the existence of airdrops. It even encourages people to sell assets to lower prices to the level of airdrop balance.
They use airdrops as a use case for EOS and encourage users to send EOS to smart contracts in exchange for EIDOS, and the EOS that is sent out will be returned to the user.
In this airdrop, early adopters and those with resources gained more EIDOS, making the project look like a Ponzi scheme.
"Many people think that EIDOS mining is a Ponzi scheme. Because EIDOS has no real purpose. In addition to airdrops, your team has not explained anything about this project. By definition, it must be a Ponzi scheme. Because it only uses trading tokens to sell to create mining needs."
There is disagreement among users about this airdrop, and EOS supporters strongly criticize the use of EOS only for the “get rich quick” program. Others seized the opportunity to turn the network into a direct source of income. The EIDOS mining process has been automated, making it easier to spread the solution to more users.