On August 8, 2023, the EOS Network Foundation (ENF)an organization representing the EOS community, posted a notice and a call to unsubscribe on its Twitter account to encourage its community to reject $22 million settlement proposed by Block.one. This follows the legal action brought by this same foundation at the end of July for breach of a $1 billion investment commitment. The atmosphere is electric.
EOS and Block.one, a collaboration that goes wrong
THE EOS project was initiated and then developed by the company block.one. The latter had even piloted the offer to the public of tokens (Initial Coin Offering or ICO), that is to say its fundraising. However, on the 4 billion dollars raised during the ICOBlock.one had committed to investing in 1 to ensure the development of the EOS ecosystem. A commitment not kept according to the foundation.
As a reminder, the EOS project is a blockchain that aims to succeed Ethereum. Founded by Dan Larimer, its goal is to position as the leading platform on smart contracts and decentralized applications. There EOS Foundationcreated in parallel, is a independent institution whose mission is to support the development of the EOS ecosystem. It was she, by the voice of its president, Yves La Rose, who filed the complaint and called on the members of the community to reject $22 million settlement proposal.
This is not the first time that Block.one has found itself in court. There fundraising initiated in 2019 had earned the Cayman Islands-based company lawsuits from the SEC, the American financial watchdog. Lawsuits that ended in $24 million fine for illegal sale of unregistered tokens. For the moment, the company has not reacted to the announcements of the EOS Network Foundation.
EOS Network Foundation warns its community
ENF expressed his deep dissatisfaction with the terms of the agreementstating that it does not adequately compensate community members for losses suffered as a result of of Block.one’s “erroneous statements and wrongdoings”.
ENF also mentioned the potential repercussions of accepting the settlement of $22 million. According to the terms of the latter, members of the community who would be tempted to accept will waive any future claims against Block.one and its founders in exchange for payment, which the foundation deemed to fall far short of expectations.
The foundation also warned that approval of these terms could prevent members of the community from launching further legal action against Block.one or seeking a more appropriate solution in the future. The divorce seems in any case consummated.
Sources: Theblock, Blockchain.news, Cryptopolitan